Electric Vehicle (EV) Sales Surge 17% in January 2025: FADA Data

Electric vehicle (EV) sales in India continued their upward trajectory in January 2025, as per data from the Federation of Automobile Dealers Associations (FADA). The industry registered a total of 1,69,931 units, marking a 17.1% year-on-year (YoY) increase and a 19.4% month-on-month (MoM) rise.

This growth was driven primarily by passenger EVs and two-wheelers, while commercial vehicles and 3-wheelers saw relatively slower expansion. Leading manufacturers such as Ola Electric, Tata Motors, and Mahindra & Mahindra recorded strong performances in their respective segments. However, some brands experienced a dip in sales compared to the previous year.

Segment-Wise Performance: 2-Wheelers and SUVs Take the Lead

• Passenger EVs: The segment witnessed robust demand, with SUVs dominating the sales charts.
• Two-Wheelers: Led by Ola Electric and other key players, this category continued its upward trend.
• Three-Wheelers & Commercial Vehicles: While the segment expanded, growth was slower compared to passenger and 2-wheeler EVs.

A significant boost came from the reinstatement of subsidies for electric cargo 3-wheelers, leading to a surge in demand. The segment saw sales of 80,546 units following the launch of the revised scheme.

Future Projections: EV Market Set for Accelerated Growth

India’s EV industry is on track for substantial expansion, with an anticipated compound annual Growth Rate (CAGR) of 43%, potentially reaching 9,32,000 units by 2030. Key expectations include:

• Electric SUVs dominate 61% of total demand.
• 30-35 new EV models are anticipated to launch in 2025.
• Increased market penetration across all segments, driven by government incentives and OEM commitments.

Government Support and Consumer Adoption Fuel Growth

The Ministry of Heavy Industries continues to support the transition to clean mobility through subsidies and incentives, making EV adoption more viable for consumers. Additionally, rising environmental awareness and stronger commitments from Original Equipment Manufacturers (OEMs) are expected to further propel the market forward.

As India moves towards a sustainable automotive future, the EV ecosystem is set to evolve with more product innovations, increased charging infrastructure, and greater affordability. With growing acceptance and favourable policies, the sector is poised for a dynamic shift in the coming years.

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