EV retail sales hit record high in July as adoption gathers pace

EV retail sales rose 66 per cent year-on-year to 327,901 units in July, pushing penetration to nearly 12 per cent as adoption accelerated across vehicle segments.

India's electric vehicle (EV) market saw its strongest monthly retail sales in July, with the figure rising 66 per cent year-on-year (Y-o-Y) to an all-time high of 327,901 units. This comes as adoption accelerated across two-wheelers, three-wheelers, passenger as well as commercial vehicles, according to data released by the Federation of Automobile Dealers Associations (Fada).

 

Retail sales were also 5.7 per cent higher than the 310,268 EVs sold in June.

 

The surge pushed EV penetration to nearly 12 per cent of overall vehicle retail sales during the month, showing the growing acceptance of electric mobility among consumers and fleet operators.

 

Sai Giridhar, vice-president, Fada, said the July figures reflected a structural shift in the market rather than a temporary spike in demand. “India has never bought more electric vehicles in a month than it did in July 2026,” Giridhar said.

 

He added that while electric two-wheelers crossed the 200,000-mark for the first time and three-wheelers made electric “the default, not the alternative,” passenger vehicle demand continues to outpace supply.

 

He urged manufacturers to address production bottlenecks ahead of the festival season.

 

“The EV transition has stopped being a forecast. It is now a showroom reality and Bharat is driving it,” Giridhar said.

 

Electric two-wheelers remained the biggest contributor to volumes, with retail sales climbing 88.3 per cent Y-o-Y to 204,362 units. The segment crossed the 200,000-monthly mark for the first time, while its share in overall two-wheeler sales increased to 11.2 per cent from 7.7 per cent a year ago.

 

TVS Motor retained its leadership position with 55,499 EVs sold, followed by Bajaj Auto and Ather Energy.

 

TVS Motor and Bajaj Auto more than doubled their electric two-wheeler sales Y-o-Y, while Ola Electric’s sales declined 23.5 per cent to 14,106 units.

 

The electric three-wheeler segment continued to lead India's EV transition in terms of penetration. Retail EV sales rose 25.3 per cent to 87,055 units, taking the segment's electric share to 65.1 per cent, up from 60.3 per cent in July last year.

 

Mahindra Last Mile Mobility and Bajaj Auto remained the top players in the category.

 

Passenger electric vehicles also witnessed robust growth, with retail sales increasing 83.1 per cent Y-o-Y to 32,928 units.

 

However, the segment's penetration remained unchanged at 7.9 per cent from June, suggesting that supply constraints for high-demand models continued to limit faster adoption. 

 

On a Y-o-Y basis, however, electric penetration in the passenger vehicle segment rose sharply from 5.1 per cent in July 2025. 

 

Tata Motors maintained its lead in the segment with 13,678 units, followed by Mahindra & Mahindra and JSW MG Motor India.

 

Passenger EV sales were 1.8 per cent lower than in June, with Mahindra & Mahindra and JSW MG Motor recording sequential declines of 5.4 per cent and 8 per cent, respectively.

 

Electric commercial vehicles posted the fastest growth among all segments, with retail sales rising 168.6 per cent to 3,556 units from 1,324 units a year earlier.

 

The segment's penetration improved to a record 3.57 per cent from 1.65 per cent in July 2025, indicating that fleet electrification is gaining momentum. Tata Motors remained the market leader, followed by Euler Motors and Mahindra Group.

 

Fada’s data was collated from 1,465 of the country’s 1,468 regional transport offices as of August 4.

 

Telangana’s data was not available for three-wheelers and commercial vehicles.