Electric vehicle (EV) adoption in India’s automobile sector continued to gain momentum in April, even as geopolitical tensions in West Asia raised concerns over fuel price stability and future demand patterns, according to the Federation of Automobile Dealers Associations (FADA).
FADA data indicates that the shift towards electric mobility is deepening across vehicle categories. The three-wheeler segment led the transition, with EV penetration surging to 60.38 per cent. In passenger vehicles, the EV share rose to 5.77 per cent, while in the two-wheeler category it stood at 7.76 per cent during April.
However, EV penetration in two-wheelers eased from 9.79 per cent in March, a drop attributed to pre-buying ahead of the phase-out of certain incentive schemes. Even so, April’s figure remained above the FY26 average of 6.5 per cent, suggesting sustained underlying demand for electric mobility.
Overall, India’s auto retail market posted its strongest-ever April performance, with total sales climbing 12.94 per cent year-on-year to 26,11,317 units.
Two-wheelers continued to dominate volumes, registering sales of 19,16,258 units, up 13.01 per cent year-on-year. Passenger vehicle sales rose 12.21 per cent to 4,07,355 units, while commercial vehicles grew 15.02 per cent to 99,339 units. The three-wheeler segment posted 1,06,908 units in sales, a 7.19 per cent increase. Tractor sales saw a sharp jump of 23.22 per cent to 75,109 units. In contrast, the construction equipment segment declined 2.25 per cent year-on-year to 6,348 units.
Looking ahead, FADA has struck a cautiously optimistic tone for May 2026. Around 55.60 per cent of dealers expect growth, up from 50.56 per cent in April, signalling improving sentiment within the trade.
Near-term demand is expected to be supported by seasonal factors, including the extended wedding period, residual purchases linked to Akshaya Tritiya, early momentum from new financial year schemes, and steady replacement demand in the commercial vehicle space.
However, FADA flagged several risks that could weigh on sentiment, including an anticipated above-normal heatwave forecast by the India Meteorological Department, volatility in fuel prices amid West Asia tensions, and supply constraints affecting select models.
(With inputs from ANI)
