EV retail sales hit record 3.33 lakh in September, up 74%: FADA

India's electric vehicle retail sales rose 74% year-on-year to a record 3.33 lakh units in September, according to data from the Federation of Automobile Dealers Associations (FADA).

The figure marks the highest monthly tally for EV registrations in the country so far. It covers electric two-wheelers, three-wheelers, passenger vehicles and commercial vehicles sold through dealerships.

Two- and three-wheelers do the heavy lifting

Electric two-wheelers and three-wheelers made up the bulk of the September volume, as they have through most of the year. These two categories have driven India's EV numbers for a while now, helped by state subsidies, lower running costs and a widening pool of models priced under Rs 1.5 lakh.

Passenger electric cars remain a small slice of the pie. Their share has grown, but high upfront prices and patchy charging infrastructure still keep volumes modest next to the scooter and rickshaw segments.

The 74% jump is a sharp acceleration from the pace seen earlier in the year. Retail registrations, which FADA tracks through Vahan, reflect actual deliveries to buyers rather than wholesale dispatches from factories. That makes the September number a cleaner read on demand than the monthly sales figures companies report.

What's behind the spike

• Festive-season buying, with Navratri and Diwali falling in the September-October window
• Discounts and financing offers from manufacturers and dealers
• Steady launches of new electric two-wheeler and three-wheeler models
• State-level EV policies that continue to waive road tax and registration fees

Dealers had flagged strong enquiries through August and early September, particularly in urban and semi-urban markets. The conversion from enquiry to sale picked up as festive offers kicked in.

FADA has repeatedly said the EV push needs to be matched by faster charging rollouts and clearer battery standards. Dealer bodies have also raised concerns about residual values of used EVs and the slow pace of service-network expansion outside big cities.

The bigger picture

India wants EVs to make up 30% of new vehicle sales by 2030. The September number puts the market on a stronger footing than it was a year ago, but the base is still small. Total vehicle retail sales across all fuel types run into crores every month, so EVs remain a single-digit share of the overall market.

Two-wheeler makers have added capacity and cut prices over the past year. Three-wheeler electrification has moved faster than most forecasts, especially in Delhi, Uttar Pradesh and Maharashtra. Passenger EVs are the laggard, with a handful of models accounting for most sales.

The September data will be watched closely by policymakers drafting the next phase of the Faster Adoption and Manufacturing of Electric Vehicles scheme. FAME's current phase has been winding down, and the shape of future subsidies is still being worked out.

"The festive month has given the EV segment its best-ever retail numbers," FADA said in its release, adding that sustained growth will depend on charging infrastructure and affordable financing.