New Delhi: Retail sales of electric vehicles (EVs) in India have risen more than 40% this year, driven by volatile global crude oil prices and growing consumer preference for lower-cost mobility, according to automobile dealers.
The surge in EV demand comes as fluctuations in international oil prices, intensified by geopolitical tensions in West Asia, have prompted consumers to move away from conventional petrol and diesel vehicles, The Economic Times reported.
Data from the Federation of Automobile Dealers Associations (FADA) showed that India’s automotive retail sector recorded its strongest-ever June sales, with alternative-fuel vehicles playing a key role in the growth of passenger vehicle sales.
Dealership executives said demand for electric vehicles gained momentum following heightened tensions between the United States and Iran, which raised concerns over global crude supplies and pushed up fuel prices.
The sharp rise in demand has also exposed supply constraints, with several dealerships reporting shortages as manufacturers struggle to meet growing consumer orders.
“Demand is significantly higher than available supply,” said Harish Datta, an executive at a regional electric scooter dealership. He added that monthly sales could increase by another 50% if manufacturers were able to supply enough vehicles to meet current demand.
Automobile dealers said consumers are increasingly choosing electric vehicles because of their lower operating costs compared with petrol and diesel models. Growing confidence in battery technology and longer warranty periods offered by manufacturers have also helped address concerns over battery life and ownership costs.
Industry participants expect EV adoption to continue rising as fuel price volatility persists and charging infrastructure expands, further strengthening the shift towards cleaner transportation in India.
