The expansion of this sector in the Indian automotive market is being driven by the rising demand for electric vehicles and the rising number of available models in this category. Electric car penetration in the passenger car market has increased to 4.43% in June 2025, compared to 2.52% in June of last year, due to the increased demand and positive consumer mood. According to the Federation of Automobile Dealers Associations (FADA), EV penetration in the Indian passenger vehicle market has also increased month-on-month (MoM). The proportion of electric cars in the passenger car market was 4.07% in May of this year.

According to data made available by FADA, hybrid vehicles made up 8.13% of all PV sales in the previous month, somewhat lower than the 8.66% seen in June 2024. The hybrid car market share also declined slightly from May 2025 statistics. The market share of hybrid vehicles was 8.29% in May 2025.

Surprisingly, of the vehicles with cleaner powertrain technology, CNG and LPG models made up 20.82% of sales in June 2025, a rise from 20.17% in May 2025 and 18.22% in June of the previous year.

Last month, petrol automobiles accounted for 48.15 percent of all sales, a decrease from 52.23 percent in June 2024 and 48.32 percent the month before. Unquestionably, the retail sales of gasoline vehicles experienced a large decline. Diesel cars' market share didn't change significantly on a year-over-year basis last month. In June 2025, diesel automobiles accounted for 18.48% of all sales, a decrease from the 19.14% seen in May of this year and the 18.37% seen in June of the previous year.

The proportion of electric vehicles in two-wheeler sales increases dramatically

The adoption of electric vehicles in the two-wheeler industry likewise increased by 1.49%. The expansion of this market has been driven by the use of electric scooters. The proportion of electric vehicles in overall two-wheeler sales rose from 5.79% in June of last year to 6.07% in May of this year and 7.28% in June of 2025. The proportion of gasoline models decreased somewhat from 94.21% in June of last year and 93.71% in May of this year to 92.50%.

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