India's electric vehicle market achieved a historic milestone in June 2026, with EV penetration crossing 12% of overall vehicle retail sales for the first time, according to the Federation of Automobile Dealers Associations (FADA). This represents a nearly 63% year-on-year increase in EV retail sales to a record 306,220 units, making it the highest monthly EV retail volume recorded by FADA. The growth was driven by electric two-wheelers recording double-digit market penetration of 10.6%, signalling that mass-market adoption is gaining pace. FADA President C S Vigneshwar described June as a defining month in India's mobility transition, noting that growth was witnessed across all EV segments rather than being concentrated in a single category. As per FADA, the shift towards electric mobility is no longer confined to a single vehicle category, with sales growth seen across two-wheelers, passenger vehicles and commercial EVs, indicating that the adoption of EVs is becoming increasingly widespread.
The electric two-wheeler segment remained the largest contributor to overall EV sales, with retail volumes rising nearly 75% year-on-year to 193,735 units. TVS Motor Company retained its leadership position with sales of 47,064 units in June, up 76.05% from a year earlier. Bajaj Auto followed with 43,306 units, registering an 80.54% increase, while Ather Energy nearly doubled its retail sales to 31,230 units, up 95%. Hero MotoCorp emerged as the fastest-growing major player with electric two-wheeler retail sales jumping 175.51% year-on-year to 21,820 units. In contrast, Ola Electric continued to lose ground, with retail sales declining 21.97% to 16,150 units during the month. The electric three-wheeler segment continued to dominate with 77,448 units and penetration of more than 64%, while electric passenger vehicles and commercial vehicles also registered their best-ever monthly retail sales. According to FADA, legacy manufacturers now lead the electric two-wheeler space, established players are scaling electric cars and commercial vehicles, and new entrants, both Indian and global, are choosing India as a priority market.
The Indian auto industry achieved its best June ever recorded, with retail sales reaching 25,57,234 units, representing a robust 21.83% year-on-year growth and 1.03% rise over May, according to the Federation of Automobile Dealers Associations (FADA). Passenger vehicle (PV) retails were the standout performer at 4,10,853 units, up 28.63% year-on-year and 2.05% month-on-month, marking the best June ever for PVs. On an annual basis, the Bharat-led character remained intact with rural PV at 35.09% growth versus urban at 24.67%. FADA President CS Vigneshwar noted that PV alternative-fuel share — CNG, Hybrid and EV combined — crossed the 40% mark for the first time at 40.35%, with PV EV retails of 31,823 units, an all-time high. Two-wheeler retails stood at 18,28,458 units, up 21.22% YoY, though marginally lower by 0.89% month-on-month, also marking the best June ever. Commercial vehicle retails came in at 90,972 units, a 16.88% YoY growth and the best June on record, with rural at 21.63% growth. The record EV sales of 3,06,220 units came despite a delayed monsoon and a relatively seasonally slower period for the automobile industry, as per FADA.
According to FADA, the evolving market reflects the increasing participation of established automobile manufacturers in the EV space, alongside new domestic and global entrants, reinforcing India's position as a priority market for electric mobility. FADA President C S Vigneshwar emphasized that the industry was seeing a broader shift as electrification moved from the margins to the mainstream, supported by improving affordability, a growing charging ecosystem and expanding product choices. The industry body expects rising consumer confidence, improving economics and wider model availability to sustain the momentum in the coming months. Kotak expects revenues for auto stocks under coverage to increase by 17% year-on-year in Q1FY27, with two-wheeler manufacturers and diversified auto ancillary companies likely to outperform, while Hyundai Motor India, Tata Motors and tyre companies could face pressure from higher commodity costs*. The latest data underscores the tremendous momentum behind India's transformation towards cleaner transportation and strengthens the country's position as one of the world's fastest-growing EV markets, as per FADA.
