Surging registrations, record-breaking March sales in 2026, and fierce competition among automakers mark India’s EV market as penetration climbs to 8.5% in FY2025-26.
India’s electric vehicle (EV) market recorded strong growth in FY2025-26, with registrations surpassing 2.5 million units, marking a 24% year-on-year (YoY) increase, according to a recent report by JMK Research & Analytics.
In fiscal 2026, EV penetration reached 8.5% of total vehicle registrations, up from 7.7% in the previous year, though still short of the government’s 2030 target of 30%.
Electric two-wheelers remained the largest contributor, accounting for 58% of sales. Passenger three-wheelers peaked in December 2025 at 78,057 units, driven by mandatory registration in West Bengal, but demand slowed after incentives under the PM E-Drive scheme were exhausted.
Cargo three-wheelers, however, maintained steady growth, supported by cost benefits for delivery fleets.
Passenger cars emerged as the fastest-growing segment, registering an 86% increase without direct purchase incentives, signalling organic demand. Electric goods vehicles saw the sharpest rise, with a whopping 172% growth and penetration climbing to 1.4% from 0.6% a year earlier.
This was aided by the inclusion of medium and heavy trucks under PM E-Drive, the adoption of light goods vehicles for logistics, and fleet conversions by e-commerce firms.
Traditional manufacturers strengthened their position in the two-wheeler market, with TVS, Bajaj, and Hero MotoCorp together holding 61% share. In passenger cars, Tata Motors retained leadership, but its share fell from 57% to 39% amid competition from JSW MG Motor, Mahindra, Hyundai, and new entrants VinFast and Maruti Suzuki.
The charging network expanded to over 27,000 public stations by March 2026, improving practicality for electric SUVs.
March 2026 also set a record with 280,000 registrations, driven by promotional pricing, fleet procurement, and buyers securing incentives before deadlines.
Looking ahead, penetration is projected to reach 9.5–10% in FY2026-27, supported by extended PM E-Drive deadlines, localisation efforts, improvements in financing, and new model launches.
