Electric Two-Wheeler Sales Surge 42% in May Amid Fuel Price Concerns

Electric Two-Wheeler Registrations Rise 41.6 Percent Amid Fuel Price Volatility

As of May 29, electric two-wheeler registrations have reached 1,49,509 units, a 41.6 percent year-on-year increase, according to Vahan data. This growth can be attributed to the fuel-price volatility caused by the Iran war, which has driven adoption of electric vehicles.

In May 2025, a total of 1,05,620 vehicles were registered, demonstrating sustained momentum in EV adoption despite a moderation from the year-end peak seen in March. It is worth noting that Vahan data does not include numbers from Telengana.

Industry executives attribute the demand to attractive discounts, financing schemes, and growing consumer interest in reducing dependence on petrol-powered vehicles amid rising fuel prices. The gig ecosystem, in particular, has shown a significant increase in demand for electric vehicles, with daily runs and fuel costs being a major concern.

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TVS Motor retained its pole position in the electric two-wheeler segment, registering 38,104 vehicles during the month. Bajaj Auto came in second with 34,236 registrations, followed by Ather Energy at 24,854 units. Hero MotoCorp-backed Vida had 16,402 registrations and stayed ahead of Ola's 13,054.

The market continues to see intense competition among legacy manufacturers and new EV-focused players, with established automakers steadily increasing their share through wider dealer networks and a broader product portfolio. Automakers rolled out aggressive discounts in March, along with exchange offers and financing programmes, helping sustain showroom traffic and conversions. Some of those discounts extended through May.

Industry executives said concerns around fuel-price movements and volatility in global crude markets also nudged buyers toward electric vehicles that offer lower running costs. Despite the sequential decline, the industry's outlook remains positive, with companies continuing to expand charging infrastructure, improve vehicle range, and introduce new models across price points.

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