FADA: EV Sales Drop 17.6% in April, Reaching 167,455 Units

India’s electric vehicle (EV) market, which has shown remarkable year-on-year growth, faced a notable slowdown in April 2025. A sharp 17.6% decline in monthly sales was recorded, attributed primarily to a significant reduction in government subsidies for electric two-wheelers (e2w). Despite the monthly drop, overall EV sales were substantially higher than in April 2024, showing the underlying strength of consumer interest and industry expansion.

Subsidy Cuts Trigger Decline in Total EV Sales

Electric vehicle sales fell to 167,455 units in April, as per data from the Federation of Automobile Dealers Association (FADA). The drop impacted nearly every segment except electric three-wheelers (e3w). Compared to the same period last year, total EV sales were up 44.4%.

The fall follows the government’s decision to halve subsidies on e2ws to ₹5,000 per unit starting 1 April. As per the PM E-drive scheme, this amount will further decrease in FY26, capping at ₹5,000 per vehicle, down from ₹10,000 in FY25.

E2W: Sharp Monthly Decline After Subsidy Slash

The e2w category, typically dominant due to affordability and convenience in urban settings, saw sales fall nearly 30% m-o-m to 91,791 units. However, this figure still reflects a 40% Y-o-Y increase.

TVS Motor and Ola Electric led the e2w segment with 39,445 units against 53,912 units in March. Bajaj Auto, Ather Energy, and Hero reported double-digit declines in monthly sales, while Kinetic Green Energy and Power Solutions stood out with a 55.1% increase.

With reduced central incentives, future growth in this segment is expected to hinge on local manufacturing, cost efficiencies, and supplementary state-level benefits.

E3W and Passenger Vehicles: Mixed Performance

The e3w segment was the only category to report a m-o-m sales rise, increasing 5% to 62,531 units and 48.7% Y-o-Y. Mahindra Group sold 11,264 units in April, down from 13,352 in March. Bajaj Auto and TVS Motor recorded 4.1% and 63.8% m-o-m growth, respectively.

These gains come ahead of a phased reduction in e3w subsidies, which will fall from ₹10,000 per kWh under FAME II to ₹2,500 per kWh by 2026.

Passenger vehicle (PV) and commercial vehicle (CV) segments also saw slight m-o-m declines: 12,233 PVs and 900 CVs sold in April, down from 12,356 and 961 in March. Both categories saw healthy Y-o-Y growth over April 2024’s 7,798 PVs and 513 CVs. Tata Motors saw a minor decline in PV sales, while MG Motor India, Hyundai Motor India, BYD India, and BMW India posted double-digit drops.

Read More: Best EV Stocks in India for May 2025 Based on 5Y CAGR: JBM Auto, KPIT Tech, M&M and More

Conclusion

Though April witnessed a slowdown in EV sales driven by subsidy cuts and pricing pressure, the broader trend remains positive. With a projected 43% compound annual growth rate (CAGR) leading to 932,000 units by 2030, 61% of which are expected to be electric SUVs.The sector is poised for strong, long-term expansion.

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