EV Adoption Rises in April as India Auto Retail Sales Grow 12.94%: FADA

India’s Automobile Retail Sales rose 12.94% year-on-year in April to 26,11,317 units, according to data released by the Federation of Automobile Dealers Associations (FADA). The industry recorded growth across most vehicle categories during the month. 

2-wheeler sales increased 13.01% year-on-year to 19,16,258 units. Passenger vehicle retail sales stood at 4,07,355 units, up 12.21% compared with the same period last year. 

Commercial vehicle sales rose 15.02% to 99,339 units. Tractor sales grew 23.22% year-on-year to 75,109 units, while 3-wheeler sales increased 7.19% to 1,06,908 units. 

EV Share Improves Across Segments 

Electric vehicle penetration continued to rise across categories in April. In the 3-wheeler segment, electric vehicles accounted for 60.38% of total retail sales, remaining the highest among all segments. 

Passenger vehicle EV penetration stood at 5.77% during the month. In the 2-wheeler category, electric vehicles accounted for 7.76% of total sales. 

FADA said EV penetration in 2-wheelers declined from 9.79% in March. The higher March figure was linked to advance purchases before the closure of certain EV incentive schemes. 

Despite the decline on a month-on-month basis, April’s EV share in 2-wheelers remained above the FY26 average of 6.5%, indicating continued demand for electric models. 

Construction Equipment Sales Remain Weak 

The construction equipment segment was the only major category to report a decline in April. Retail sales in the segment fell 2.25% year-on-year to 6,348 units. 

FADA also noted supply-related constraints in select vehicle models across certain markets, which affected availability during the month. 

Dealers Expect Stable Demand in May 

Dealer sentiment for May remained cautious despite expectations of continued demand. According to FADA, 55.60% of dealers surveyed expect growth in sales, compared with 50.56% in April. 

The industry expects demand support from the wedding season, purchases linked to Akshaya Tritiya, fresh schemes introduced at the start of the financial year, and replacement demand in commercial vehicles. 

However, dealers flagged risks from possible fuel price volatility linked to developments in West Asia, forecasts of above-normal heatwaves in several states, and supply constraints in specific models. 

Read More: Scheduled Commercial Banks Reports 15.9% Credit Growth in FY26 as Lending Rises Across Sectors! 

Conclusion 

FADA data showed continued growth in vehicle retail sales and rising EV penetration across segments in April. Dealers, however, remain watchful of fuel price movements, weather conditions and supply-related challenges ahead of May. 

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