Charging ahead: EVs see record 12.5% market share in June

Business & FinanceCars
6 Jul 2026 • 5:56 PM MYT
Tribune
Tribune

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An EV charging station ©File

Electric vehicles accounted for a record 12.5 per cent of all vehicle retail sales in India in June, driven by strong demand across multiple segments.

According to the Federation of Automobile Dealers Associations (FADA), electric passenger vehicle registrations rose to a record 31,823 units during the month, accounting for 8 per cent of all new passenger car and sport utility vehicle (SUV) retail sales.

Electric two-wheelers also crossed a key milestone, accounting for 10.6 per cent of total retail sales for the first time, up from 7.3 per cent a year earlier.

Electric three-wheelers continued to record the highest penetration, with EVs accounting for 64 per cent of retail sales in the segment. EV penetration in commercial vehicles stood at 4 per cent.

FADA president CS Vigneshwar said total EV retail sales across all vehicle categories crossed 3,06,220 units in June — the highest ever recorded in a single month — taking overall EV penetration to nearly 12.5 per cent.

The country’s automobile retail sector recorded its strongest-ever June performance, reflecting robust consumer demand across both urban and rural markets.

According to FADA, all major vehicle segments — two-wheelers, passenger vehicles, commercial vehicles and three-wheelers — posted their best-ever June retail sales, with overall vehicle registrations rising 21.8 per cent year-on-year to a record 2.56 million units.

Passenger vehicle retail sales rose 28.6 per cent year-on-year to an all-time high of 4,11,000 units, making the segment the biggest contributor to overall growth.

Rural India continued to outperform urban markets on an annual basis, although a delayed and uneven south-west monsoon resulted in a modest month-on-month slowdown in rural demand.

One of the month’s standout trends was the rapid adoption of cleaner powertrains. Alternative-fuel vehicles, including CNG, hybrid and electric models, accounted for more than 40 per cent of passenger vehicle retail sales for the first time.

Two-wheelers, the country’s largest vehicle segment, also recorded their highest-ever June sales, with retail volumes rising 21.2 per cent year-on-year to 1.83 million units.

Overall retail volumes eased slightly from May, a decline FADA attributed entirely to softer rural demand as delayed monsoon rains made buyers more cautious.

Urban demand, however, remained resilient, supported by stronger entry-level purchases and improved vehicle availability as supply disruptions linked to the conflict in West Asia eased.

Commercial vehicle retail sales climbed 16.9 per cent year-on-year to a record 90,972 units, supported by improved supplies, stronger freight movement and sustained e-commerce activity.

Rural markets once again outperformed metropolitan centres, while electric commercial vehicles captured a record 3.5 per cent market share.

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