Passenger EVs now account for 4% of total four-wheeler sales: FADA

Sales of electric passenger vehicles (EV) sales crossed 4% in May this year, up from 3.5% in April, data from the Federation of Automobile Dealers Association (FADA) revealed. According to reports, the contribution of EVs in May last year was 2.6%.

FADA data revealed that EV players sold close to 12,304 units, compared to 12,233 units in April and 8,029 units in May 2024. The increased sales represent a shift in consumer adoption of EVs and signal a growing momentum in the transition towards cleaner mobility.

"This growth has been driven by improvements in battery technology, better range, and lower costs compared to earlier electric PV models," said Saharsh Damani, CEO of FADA, to the media.

According to the FADA report, Tata Motors is leading the four-wheeler segment with 4,351 units sold this month. Following it is JSW MG Motor with 3,765 units, and Mahindra & Mahindra at 2,632 units.

This growth comes at a time when the automobile industry faces supply chain issues due to China's restrictions on the export of rare earth minerals—a critical component in the functioning of EVs. Damani added that if the supply chain challenge does not improve, the retail sales could be impacted due to production slowdowns.

Tata Motors reported an 18% year-on-year decline in EV sales, while JSW MG Motor reported strong growth of 149% year-on-year.