Electric Two-Wheeler Sales Cross 1 Lakh In May 2025, Rise Nearly 30 Percent Y-o-Y: FADA

Electric two-wheelers sales reached 1,00,345 units in May 2025 reflecting a M-o-M growth of 9.32% and 29.76% increase in term sof Y-o-Y basis. TVS Motor Company led the segment with 24,572 units, followed by Bajaj Auto (21,812 units) and Ola Electric (18,501 units).

While the overall two-wheeler market recorded a slight monthly dip of 2.02%, it still posted a year-on-year increase of 7.31%. Dealers attributed this to marriage-related demand, rural buying linked to the Rabi harvest and pre-monsoon interest. However, financing limitations in the entry-level segment restricted further growth.

The electric passenger vehicle category saw 12,304 units retailed in May 2025, with a marginal 0.58% rise from April and a 53.24% increase over May 2024. Tata Motors remained on top with 4,351 units, followed by JSW MG Motor (3,765 units) and Mahindra & Mahindra (2,632 units).

In contrast, the broader passenger vehicle segment declined by 13.6% MoM and 3.1% YoY. Inventory levels rose slightly to 52–53 days. Demand for entry-level models remained weak due to financing constraints and subdued sentiment in some northern border states. Despite stable bookings, delayed purchase decisions affected retail conversion.

Electric commercial vehicles recorded 1,019 units in May 2025. This represents a 13.22% rise from April and an 84.3% increase compared to May 2024.

Key performers included:

• Tata Motors: 223 units (down 15.53% MoM down 10.1% YoY)
• Mahindra Group: 189 units (up 13.86% MoM up 950% YoY)
• PMI Electro Mobility: 147 units (down 21.81% MoM)
• Switch Mobility: 125 units (up 257.14% MoM)

The overall commercial vehicle segment fell 3.7% YoY due to weak cargo movement and slower fleet renewal.

The e-3W category saw 66,018 units sold in May 2025, marking a 5.58% monthly increase and a 20.62% annual rise.

Leading OEMs included:

• Mahindra Group: 6,588 units (up 16.97% MoM)
• Bajaj Auto: 6,293 units (up 14.23% MoM)
• YC Electric: 3,684 units (up 9.48% MoM)

The three-wheeler category as a whole grew by 6.2% YoY. Steady demand for last-mile mobility and shared transport contributed to segment performance.

According to FADA President C.S. Vigneshwar, the overall auto retail market recorded a 5% year-on-year rise in May 2025. While EVs continued to gain traction, varying demand conditions, inventory challenges and financing limitations across vehicle categories indicate the need for careful planning by OEMs and retailers alike.

Hari Kiran - Co-Founder, COO, eBikeGO, said, "The electric two-wheeler sales gave a stellar 29.76% year-on-year growth in May 2025, thus exhorting the change in consumer choice toward clean and cheap mobility. We take this to be a validation of the dependence shifting onto EV technology, especially by the younger and the rural patrons. While the segment was leading registrations of overall EVs, the slight contraction in larger two-wheeler market makes attention to financing gaps an acute one, especially on the entry-level side."

Krishna K Jasti, CEO & CPO of EVRE, welcomed the change, and reiterated that massive R&D efforts will be required to sustain this shift, “We welcome this change, as its impact goes beyond the two-wheeler manufacturers. Indians are one of the world’s highest users of two-wheeler mobility solutions and as their preferences shift towards EVs, simultaneous growth can be expected at critical EV infrastructures like chargers. We have seen the robust growth of petrol pumps in the last 50 years in India, and in the next 50 years, we project that India will become the global model of sustainable two-wheeler mobility and infrastructure solutions."