In a first, the contribution of electric passenger cars of total car sales crossed the 4% mark in May, according to the data released by the Federation of Automobile Dealers Association (Fada).
The EV share stood at 4.1% for the month, rising from 3.5% in April 2025 and 2.6% in May 2024, the data showed. “(It is) an important milestone in our industry’s journey towards electrification. This growth has been driven by improvements in battery technology, better range, and lower costs compared to earlier electric PV models,” Fada CEO Saharsh Damani said.
The growth comes at a time when the automobile sector is facing supply chain issues due to China’s restrictions on the export of rare earth magnets, a critical component in the functioning of an electric vehicle. “If the supply situation for rare earth materials doesn’t improve, we could see production slowdowns that may impact retail sales in the near future,” Damani cautioned.
According the Fada numbers, Tata Motors maintained its market leadership in the electric car segment by selling 4,351 units in the month. However, the company posted a decline of 18% Y-o-Y in EV sales. On the other hand, its closest competitor JSW MG Motor reported a strong growth of 149% Y-o-Y, selling 3,765 electric cars in May while Mahindra & Mahindra came in at the third spot with 2,632 units sold during the month.
The share of top three EV car companies in total electric car sales stood at over 87%, indicating the continued strong hold of these auto majors. Fada data shows the number of units dispatched to dealerships during a month.
The overall electric car market showed a growth of 53.24% Y-o-Y. However, the month-on-month sales could rise by only 0.58%. The passenger vehicle has contracted by 13.6% M-o-M and 3.1% Y-o-Y, the retail sales numbers recently released by Fada had shown. The dealers’ association had said that the India-Pakistan war impacted vehicle sales in border states like Jammu & Kashmir, Punjab, Rajasthan, and Gujarat.
