Consumer behaviour pivots post-GST, cooling two-wheeler electrification but accelerating adoption in cars, three-wheelers and commercial vehicles.
09 Dec 2025 | 5695 Views | By Darshan Nakhwa
India’s electric vehicle market delivered a mixed performance in November 2025, with retail trends showing clear divergence across segments as per data released by the Federation of Automobile Dealers Associations (FADA). While electric passenger vehicles, three-wheelers, and commercial vehicles continued to expand at a strong pace, the two-wheeler category lost ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
India’s electric vehicle market delivered a mixed performance in November 2025, with retail trends showing clear divergence across segments as per data released by the Federation of Automobile Dealers Associations (FADA). While electric passenger vehicles, three-wheelers, and commercial vehicles continued to expand at a strong pace, the two-wheeler category lost momentum, reflecting the deepening impact of GST 2.0 on buyer behaviour. Lower prices for entry-level ICE vehicles after the tax overhaul have tilted short-term demand away from EVs, cooling what had been a period of fast electric adoption earlier in the year.
Electric two-wheeler sales slipped 2.5% year-on-year to 1,16,982 units, leaving the segment’s market share unchanged at 4.6%. Among major OEMs, TVS Motor Company and Hero MotoCorp were the only ones to post strong growth. TVS Motor’s volumes rose 11% to 30,347 units, reinforcing its leadership position, while Hero MotoCorp reported a sharp 66% increase to 12,213 units. Ather Energy also delivered robust growth of 57% year-on-year with 20,349 units. In contrast, Bajaj Auto saw a mild decline to 25,565 units, and Ola Electric recorded the steepest drop in the segment, falling 71% from last year. Collectively, these companies accounted for 83% of all E2W sales in November.
Sequentially, E2W volumes dropped nearly 19% from October, signalling both a natural post-festive correction and a shift in consumer preference toward more affordable ICE scooters after GST-led price rationalisation.
In contrast, electric passenger vehicles grew 62% year-on-year to 14,850 units, reflecting expanded model availability and increased penetration, which now stands at 3.8% compared with 2.8% last November. Tata Motors PV retained its leadership with sales of 6,153 units, supported by sustained traction for products like the Nexon EV and Punch EV. The launch of Harrier EV also aided the company’s sales. However, the automaker’s market share declined from 49% in November 2024 to 41% this year due to rising competition from JSW MG Motors and M&M.
JSW MG Motor continued to build on its EV push, with sales growing 10% on year to 3,693 units. While Mahindra’s electric SUV segment saw a manifold jump in volumes as production ramped up. On a month-on-month basis, the electric PV category saw a 17.7% decline, mirroring a broader recalibration in buyer preference following the GST reforms that lowered the prices of ICE models.
Electric commercial vehicles also delivered a strong November, with sales climbing more than 200% to 1,698 units, supported by rising adoption of electric buses and medium-duty goods carriers in intra-city applications. Tata Motors, Mahindra Last Mile Mobility and Euler Motors posted notable gains, with Euler recording one of the fastest expansions from a low base. EV penetration in CVs reached 1.79%, more than double the level seen a year earlier. Meanwhile, the slight 3.9% drop compared to October was largely attributed to irregular delivery schedules linked to state transport undertakings rather than weakening demand.
While November’s EV sales trajectory was mixed, the underlying narrative was shaped heavily by the tax structure overhaul implemented in September. As lower GST rates made mass-market ICE vehicles cheaper, many consumers in the value-focused segments, particularly two-wheelers and small passenger cars, chose to delay EV adoption in favour of more affordable petrol and CNG options. The sharper month-on-month declines in E2W and EPV categories reflect this behavioural shift.
At the same time, electrification in commercial and three-wheeler mobility continues to strengthen, driven by economics rather than incentives: lower operating costs, improving product reliability, and broad-based fleet demand have kept these segments on a steady upward path.