Electric vehicle sales climbed sharply in May, with Tata Motors, TVS Motor and Ather Energy emerging as key beneficiaries.
India’s electric vehicle (EV) market saw a sharp rise in demand during May as higher fuel prices encouraged consumers to switch to electric mobility, according to reports from Nomura and HSBC.
Nomura estimated that EVs accounted for 6.4% of passenger vehicle sales in May, up from around 4% in FY26. Electric two-wheelers also gained ground, with their share rising to 8.9% from about 6.5% a year earlier.
HSBC reported similar trends, estimating electric passenger vehicle penetration at 6.6% and electric two-wheeler penetration at 9.3% during the month. The brokerage said recent fuel price increases have made EVs a more attractive option for buyers.
Among automakers, Tata Motors continued to benefit from the growing shift toward electric vehicles. The company reported an 85% year-on-year jump in EV sales, while bookings have increased 2.5 times over the past two months.
Strong demand has been particularly visible in the sub-Rs 15 lakh segment. To meet rising orders, Tata Motors plans to expand its monthly EV production capacity from 10,000 units to 15,000 units.
The trend was also evident in the electric two-wheeler market. TVS Motor maintained its leadership position with around 42,000 electric scooter registrations in May. Bajaj Auto and Ather Energy followed closely behind.
Ather emerged as one of the fastest-growing players, with sales more than doubling from a year earlier and its market share reaching about 16.5%.
Despite concerns over rising commodity costs, analysts remain optimistic about the sector’s outlook. They believe favorable government policies, growing consumer awareness and improving product availability are accelerating EV adoption across the country.
The latest sales figures suggest India’s electric vehicle market is approaching a key growth phase, with rising fuel costs acting as a major catalyst for the transition.
