New Delhi [India], June 7 (ANI): The contribution of electric passenger vehicle (EV) sales crossed 4 per cent in May, compared to 2.6 per cent of the same period of 2024, the data by the Federation of Automobile Dealers Associations (FADA) revealed.
The May retail data marks an uptick from 3.5 per cent in April by 0.5 per cent.
The increasing retail sales data marks a significant shift in consumer adoption of EVs, signalling growing momentum in the transition towards cleaner mobility.
The retail data of electric passenger vehicles shows that the players in the segment sold about 12,304 units, compared to just 8,029 units of the May 2024.
The FADA data shows that the April retail sale was registered at 12,233 units.
On the other hand, the FADA data released on Friday shows that auto players witnessed a modest rise of 5 per cent in May compared to the same month last year.
Segment-wise, the two-wheeler category performed best, registering a rise of 7.3 per cent on a year-on-year basis. Three-wheelers followed (rise of 6.2 per cent), and the tractor segment registered a gain of 2.7 per cent on a year-on-year basis.
According to FADA, robust semi-urban/rural demand driven by auspicious marriage dates, strong Rabi harvest, and pre-monsoon pull helped the two-wheeler segment register a year-on-year rise. On the other hand, financing constraints in the economy segment cap upside, leading to a decline of nearly 2 per cent in the segment.
The passenger vehicle segment suffered a decline, on “Elevated inventory days and subdued consumer sentiment–particularly in entry-level models–compounded by war-related tensions for border-state (J&K, Punjab, Rajasthan, Gujarat) and margin-money challenges; healthy bookings offset by weak retail conversions,” FADA said.
However, FADA projects that global supply-chain headwinds (rare-earth constraints in EV components, geopolitical tensions) may limit urban consumer sentiment and exert cost pressure. (ANI)
