Electric Vehicle Sales Surge and Struggle in July: A Dual Narrative, ETAuto

The two-wheeler segment is increasingly vulnerable to supply-side disruptions.India’s electric vehicle landscape presented a mixed picture in July. While electric passenger vehicles (ePVs) accelerated into double-digit growth territory, electric two-wheelers (e2Ws) stumbled amid raw material shortages and geopolitical uncertainties.

According to data released by the Federation of Automobile Dealers Associations (FADA), e2W retail sales dipped 2.26 per cent month-on-month (MoM), with 102,973 units sold in July, compared to 105,276 units in June. The fall comes after a steady 5 per cent rise in June, hinting at emerging supply-side and market challenges.

Headwinds for e2Ws

TVS Motor retained its top spot but reported a 12.03 per cent MoM decline, selling 22,256 units in July versus 25,300 units in June. Bajaj Auto followed with a fall of 14.54 per cent, as sales dropped to 19,683 units from 23,032 units in the previous month.
e2W sales in July
Rajiv Bajaj, Managing Director, recently flagged the unavailability of rare earth materials as a serious concern. Production had already halved in July and could drop to zero in August if sourcing issues persist. However, this will not happen as Bajaj Auto has found alternative supply options which will help it tide over the crisis.Ola Electric, which has been rebuilding its position in the market, saw a 11.58 per cent decline in sales with 17,852 units, down from 20,190 units in June. Ather Energy posted a healthy 11.88 per cent MoM growth with 16,251 units sold. Meanwhile, Hero MotoCorp registered a significant 36.95 per cent surge, selling 10,501 units. Its EV arm, VIDA, clocked its highest monthly sales yet with 11,226 units.

ePVs post robust growth

On the other end of the spectrum, ePVs saw strong momentum, recording a MoM growth of 17.83 per cent with 15,528 units sold in July, a jump from 13,178 units in June.
ePV sales in July
Tata Motors continued its dominance in the segment, registering a 28.44 per cent growth with 6,047 units sold, up from 4,708 in June. The company is betting big on its newly launched Harrier EV to sustain this lead. Tata Motors CFO PB Balaji confirmed there was no impact on EV production due to rare earth material constraints, and the company is proactively scouting for alternative sources.JSW MG Motor India also reported a strong July, with 28.12 per cent growth backed by the success of its MG Comet and MG Windsor models. Mahindra & Mahindra, while retaining its third spot, saw sales drop 6.4 per cent MoM to 2,835 units. Despite the excitement around new launches like the XUV 9e and BE 6, the brand is seeing a slowdown in this space.

Hyundai Motor India, focusing on its Creta EV and the premium Ioniq 5, sold 613 units in July, marking a 19.73 per cent increase — though volumes remain significantly lower than top contenders.

Meanwhile, BYD of China figured in the top five list selling 459 units even though this was 3.57 per cent down from the preceding month.

To sum up, while legacy players continue to hold strong positions in both e2W and ePV categories, the two-wheeler segment is increasingly vulnerable to supply-side disruptions.

• Published On Aug 8, 2025 at 09:57 PM IST

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