New Delhi [India], May 5 (ANI): Electric vehicle (EV) adoption across India's automobile sector continued to strengthen in April, even as broader geopolitical tensions in West Asia cast a shadow over fuel price stability and future demand trends, according to the Federation of Automobile Dealers Associations (FADA).

The data showed that the transition towards EVs continued to deepen across categories. In the three-wheeler segment, EV penetration rose significantly, with EV share reaching 60.38 per cent. In passenger vehicles, EV share improved to 5.77 per cent, while in the two-wheeler segment, EV share stood at 7.76 per cent in April.

FADA noted that the EV share in two-wheelers moderated to 7.76 per cent in April from 9.79 per cent in March. The higher March figure was due to pre-buying activity ahead of the closure of certain EV incentives.

Despite this moderation, the April level remained higher than the FY26 average of 6.5 per cent, indicating continued strength in EV adoption.

Alongside the rising EV penetration, the overall auto retail market recorded its best-ever April performance, with total sales reaching 26,11,317 units, marking a 12.94 per cent year-on-year growth.

Across segments, two-wheelers recorded sales of 19,16,258 units, growing 13.01 per cent YoY, while passenger vehicles stood at 4,07,355 units, up 12.21 per cent YoY. The commercial vehicle segment reported sales of 99,339 units, rising 15.02 per cent YoY.

The three-wheeler segment saw sales of 1,06,908 units, growing 7.19 per cent, while tractor sales surged 23.22 per cent YoY to 75,109 units. However, the construction equipment segment remained under pressure, declining 2.25 per cent YoY with sales of 6,348 units.

Looking ahead, the outlook for May 2026 remains cautiously optimistic. According to FADA, around 55.60 per cent of dealers expect growth, an improvement from 50.56 per cent in April.

The expected demand in the near term is likely to be supported by factors such as the extended marriage season, residual demand from Akshaya Tritiya, the start of new financial year schemes, and continued replacement demand in the commercial vehicle segment.

However, the report also highlighted certain risks. These include the India Meteorological Department's forecast of an above-normal heatwave across several states, uncertainty in fuel prices due to developments in West Asia, and some supply constraints in specific models. (ANI)