India’s EV Market Powers Ahead in FY26; cars jump 84%

• EV sales crossed 2 million units in FY26, reaching 2.45 million, up 25% year-on-year.

• Two-wheelers led volumes at 1.4 million units; three-wheelers grew 19% to 830,000 units.

• Passenger EVs surged 84% to nearly 200,000 units.

• Commercial EVs jumped 121%, reflecting fleet electrification.

• Tata, JSW MG, and Mahindra dominated car sales.

• Expanding charging networks and new launches strengthened long-term growth momentum.

India’s transition to electric mobility gathered unprecedented pace in the financial year 2025–26, with total electric vehicle (EV) sales surpassing the 2 million mark for the first time. Strong demand across two- and three-wheelers, along with a sharp rise in passenger car volumes, drove overall growth and reinforced the sector’s upward momentum.

Data released by the Federation of Automobile Dealers’ Associations (FADA) show that EV retail sales reached approximately 2.45 million units in FY26, up from 1.96 million units in the previous fiscal year. This represents an annual growth of nearly 25%, reflecting expanding consumer acceptance and deeper market penetration.

Two- and Three-Wheelers Continue to Anchor Growth

Electric two-wheelers remained the backbone of the EV market. Sales in this category climbed to 1.4 million units in FY26, compared with 1.15 million units a year earlier. Established manufacturers such as TVS Motor, Bajaj Auto, and Ather Energy were among the key contributors to this growth, benefiting from expanding product portfolios and broader dealership networks.

The three-wheeler segment also delivered a solid performance. Sales rose to 830,000 units, up from 700,000 units in FY25 — a 19% increase. Companies including Mahindra & Mahindra, Bajaj Auto, and TVS played significant roles in pushing volumes higher, particularly in urban and last-mile transport markets where electrification has gained rapid acceptance.

Passenger Vehicles Post Sharpest Growth

While two- and three-wheelers dominate overall numbers, electric passenger vehicles recorded the fastest pace of expansion. EV car sales nearly doubled, rising 84% year-on-year to almost 200,000 units in FY26 from roughly 110,000 units in FY25. New model launches and strategic price reductions helped accelerate adoption.

FADA President C. S. Vigneshwar described FY26 as a defining period for the industry, noting that total EV retail volumes across all categories reached approximately 2.452 million units. He emphasized that the widespread double-digit growth across segments highlights the structural strength underpinning India’s electric mobility shift — from last-mile mobility solutions to personal transportation.

The growing commitment of automakers to expand charging infrastructure has also contributed to rising passenger EV adoption. With stricter emission regulations anticipated, manufacturers are intensifying their focus on electrified offerings.

Carmakers Jostle for Position

Tata Motors maintained its leadership in the electric car segment, selling 78,811 units in FY26, up from 57,994 units the previous year — a 36% increase. JSW MG Motor secured the second position with sales of 53,089 units, marking a 74% jump from 30,569 units in FY25.

Mahindra & Mahindra emerged as one of the fastest-growing players. The company posted a remarkable 407% surge in EV car sales, reaching 42,721 units compared with 8,426 units a year earlier. Its expanding electric portfolio, including models such as the XEV9E and BE6, has supported this strong performance.

Other manufacturers, including Hyundai, BYD, Kia, and newcomer Maruti Suzuki, have yet to achieve comparable scale in electric vehicles relative to their conventional internal combustion engine portfolios. Maruti Suzuki, which initially focused on exports, sold 1,416 EV units domestically after beginning local retail operations around February 2026 with the eVitara.

In the luxury space, BMW recorded robust growth, selling 3,537 electric vehicles in FY26 — a 124% increase from 1,580 units in the previous fiscal year. In contrast, Mercedes-Benz reported a 10% decline in EV sales, delivering 1,057 units compared with 1,157 units in FY25. Tesla, which began Indian operations in July 2025 with the Model Y, sold 342 units during the fiscal year.

Commercial Vehicles See Triple-Digit Growth

Electric commercial vehicles also witnessed rapid expansion. Sales climbed 121% to 19,454 units in FY26, up from 8,820 units in the previous fiscal year, indicating growing interest in electrification for logistics and fleet operations.

Momentum Firmly Intact

The FY26 results underscore the accelerating transformation of India’s automotive landscape. With every vehicle category posting strong double-digit growth, the country’s electric mobility ecosystem appears to be gaining structural resilience. As automakers scale investments, broaden product offerings, and strengthen charging infrastructure, the momentum behind electrification shows little sign of slowing.