Electric Vehicle Penetration Hits Record High in June

CHENNAI: The electric vehicle (EV) market has reached a new milestone, with EVs accounting for 60.2% of all three-wheeler retails in June 2025, a significant increase from 55.5% in the same month the previous year.

Expanding EV Footprint Across Vehicle Segments

According to the latest auto retail data from the Federation of Indian Automobile Manufacturers, EV penetration is not just limited to three-wheelers. Two-wheelers saw a 7.3% penetration rate, up from under 6%, while cars and SUVs reached 4.4%, up from 2.5%. Even in trucks and buses, EV sales doubled to 1.6%, and construction equipment saw a slight increase to 0.1% from virtually zero.

Overall Auto Retail Growth Modest but Positive

The auto retail sector experienced modest growth across the board in June. Two-wheelers were up by 4.7%, three-wheelers by nearly 7%, passenger vehicles by 2.5%, tractors by nearly 9%, and commercial vehicles by 6.6%. A 55% surge in construction equipment retails, driven by infrastructure projects, contributed to a total auto sales increase of nearly 5%, reaching just over 2 million units.

Early Monsoon and EV Incentives Shape Buying Patterns

Fada president C S Vigneshwar highlighted the impact of early monsoon rains and rising EV penetration on buying patterns, especially in two-wheelers. Incentive schemes and fresh bookings provided additional support to passenger vehicle sales.

Auto experts note that June marked a near inflection point for EV share in two and three-wheelers, as well as passenger vehicles, signaling a shift towards greener transportation options.