Auto majors allay fear over slowing adoption of EVs

A festive boost in petrol and diesel car sales briefly dented EV penetration after GST cuts

- Ayaan Kartik

EV penetration grew for two straight months after a dip in October.

(MINT)

A festive-season jump in petrol and diesel car sales after the government cut goods and services tax (GST) rates briefly pulled down electric vehicle (EV) penetration, leading to concern that cheaper internal combustion engine (ICE) vehicles could slow down India’s EV transition.

Automakers and dealers, however, say the recent softness reflects short-term volatility rather than a shift in consumer preference, arguing that EV adoption continues to rise as buyers look beyond upfront prices to overall ownership costs.

‘There were fears that government's move to cut GST on ICE vehicles could hurt EV penetration, as the fossil-fuelled ones were already much cheaper in the price-sensitive Indian market. However, data from the Federation of Automobile Dealers Association (Fada) released on Tuesday showed EV penetration grew for two straight months after a dip in October.

“Electric vehicle sales are here to stay. There was softening in the last few months, but penetration levels have grown in 2025. EV car penetration grew from 2.5% to nearly 4% last year,” C.S. Vigneshwar, president of Fada, told Mint.