EVs capture 8% of total vehicle sales in May, reveals FADA report

Delhi : Auto Retail Sales in India Experience Growth, Led by Electric Vehicles: Auto retail sales in India witnessed a noteworthy 10 percent year-on-year (YoY) growth in May, as reported by the Federation of Automobile Dealers Associations (FADA). The latest data reveals a significant contribution of Electric Vehicles (EVs) to the overall vehicle retail market, accounting for 8 percent.

Surge in Electric Vehicle Sales

EV sales, particularly in the 2-wheeler segment, played a vital role in this growth, representing 7 percent of total vehicle sales. Additionally, 3-wheeler EV sales achieved an impressive 56 percent share of their respective total sales.

Diversification of Electric Vehicles in the Market

The EV landscape expanded beyond 2-wheelers and 3-wheelers, with Commercial Vehicles (CV) and Passenger Vehicles (PV) making their presence felt. CVs accounted for 0.5 percent of total sales, while PVs contributed 2.5 percent, as indicated by the data provided by the auto retail body.

Influential Seasonal Factors

Among different vehicle categories, two-wheelers saw a growth of 9 percent, three-wheelers surged by an impressive 79 percent, passenger vehicles witnessed a modest 4 percent growth, and commercial vehicles experienced a 7 percent increase.

Insights from FADA President

FADA President Manish Raj Singhania offered insights into the sales performance, stating, "The growth in 2-wheeler sales can be attributed to seasonal factors such as the marriage season, changes in the FAME subsidies effective from June, and the recovery of rural demand. These positive indicators hint at a promising future for the auto industry after the challenging period caused by the COVID-19 pandemic."