India EV Sales Surge in 2026: Growth, Competition, and What’s Ahead
Electric vehicle (EV) sales in India posted another strong performance through 2025 and early FY26. Passenger EV sales hit a record 176,817 units in calendar year 2025, up 77.04 percent year-on-year from 99,875 units in 2024. As new models roll out and awareness grows, the stage is set for further expansion through 2026.
This article updates last year’s figures, adds early indicators for 2026, explains how key players are performing, and outlines what’s changing in the Indian EV landscape.
Quick Summary of 2025
- Passenger EV sales reached 176,817 units in 2025, the highest ever in India.
- Growth was broad-based across SUVs, compact cars, MPVs and premium segments.
- EV penetration in the passenger vehicle market climbed to about 4.0 percent in 2025, up from 2.4 percent in 2024.
- Across all categories (two-wheelers, three-wheelers, passenger EVs, commercial EVs), total EV sales touched about 2.3 million units in 2025, accounting for 8 percent of new vehicle registrations.
Expected EV Sales Landscape in 2026
Exact full‑year data for 2026 is not available yet, but early FY26 numbers and market forecasts give a good indication of where the market is heading.
1) Continued growth, but moderating pace
- In H1 FY2026 (April–September 2025), EV sales doubled to 91,076 units, registering 108 percent year‑on‑year growth and already reaching around 84 percent of FY2025’s full‑year total.
- Industry analysts expect overall automobile growth of around 6–8 percent in 2026, with EVs taking a rising share of that expansion as more models launch and awareness improves.
2) Market share shifts likely
- Tata Motors still leads in passenger EVs, but the gap has narrowed sharply as JSW MG Motor and Mahindra scale up aggressively.
- H1 FY2026 data shows JSW MG Motor and Mahindra together accounting for roughly half of EV sales, pointing to a more competitive, three‑player market structure in 2026.
3) New models will widen choice
- New EV SUVs, MPVs and crossovers from global brands like Toyota, Kia, Hyundai, VinFast and others are entering or expanding in India, gradually widening the mass‑market and mid‑segment EV portfolio.
- This broader product spread is expected to push EV penetration further beyond the 4 percent mark in passenger vehicles over the next year or two.
Monthly and Annual Sales Performance (2025 Recap)
Here’s how monthly passenger EV sales in 2025 compared with 2024:
India Passenger EV Monthly Sales – 2025 vs 2024
| Month | 2025 Units | 2024 Units | YoY Change |
|---|---|---|---|
| January | 11,925 | 8,475 | 41% |
| February | 9,495 | 7,517 | 26% |
| March | 13,326 | 9,761 | 37% |
| April | 13,404 | 7,816 | 71% |
| May | 13,308 | 7,987 | 67% |
| June | 14,042 | 7,292 | 93% |
| July | 16,321 | 8,011 | 104% |
| August | 18,556 | 6,787 | 173% |
| September | 16,634 | 6,182 | 169% |
| October | 19,161 | 11,444 | 67% |
| November | 15,497 | 9,172 | 69% |
| December | 14,869 | 9,249 | 61% |
- Total YoY rise in passenger EVs: about 77 percent, from 99,875 units in 2024 to 176,817 units in 2025.
- Most months crossed 11,000 units, with October 2025 setting a new high at 19,161 units.
2025 OEM Rankings with 2026 Signals
Below is the final 2025 OEM ranking, with forward‑looking context for early 2026.
India Passenger EV OEM Performance – 2025
- The top three (Tata, JSW MG, Mahindra) together hold around 88 percent of the passenger EV market, a concentration that is likely to continue into 2026 even as volumes expand.
Why Growth Continued in 2025 & Early 2026
Several structural and short‑term factors helped sustain EV momentum.
- Better product choice: A wider range of SUVs, MPVs and premium EVs encouraged more mainstream buyers, not just early adopters.
- Policy push and charging network: Central and state incentives plus faster public and semi‑public charging rollout reduced ownership barriers.
- GST cuts on ICE vehicles: Late‑2025 rate cuts on small ICE cars and motorcycles made some buyers delay or switch, slightly softening EV growth at year‑end but not reversing the broader trend.
- Fleet and commercial interest: Shared mobility operators, last‑mile delivery fleets and corporate buyers increasingly adopted EVs, especially in larger cities.
New Launches & 2026 Product Pipeline
Fresh models in 2025 and those lined up for 2026 are set to intensify competition further.
- Mahindra XEV 9S: Launched late 2025 as India’s first mass‑market 3‑row electric SUV on the INGLO platform, with multiple battery options and premium features at accessible pricing.
- Toyota and other global OEMs: New EV SUVs and crossovers from Toyota and other international brands are expected to enter or expand in 2026, especially in the compact and midsize SUV segments.
- Upcoming models from Maruti Suzuki, Tata (including Avinya‑family products), Kia and others will further widen mid‑segment EV options over the next few years.
These products should help EVs penetrate deeper into the mass and mid‑price segments, particularly among family buyers and urban commuters.
Luxury EV Segment
The luxury EV space also saw meaningful growth in 2025.
- Luxury EV sales crossed 5,000 units in 2025, with BMW leading volumes and Mercedes‑Benz holding second place.
- Other luxury brands such as Tesla, Porsche, Audi, Volvo and Rolls‑Royce posted smaller yet notable EV volumes as they expanded or refreshed their electric line‑ups.
Premium electric models often act as technology flagships, helping showcase advanced features and boosting aspirational value for EVs in general.
Regional & Segment Trends
EV growth has been uneven across segments and regions, but the underlying direction is clearly positive.
- Two‑wheelers dominate overall EV volumes, with about 1.28 million units sold in 2025, accounting for around 57 percent of total EV sales.
- Electric three‑wheelers, including L3 and L5 categories, contributed roughly 0.8 million units and 35 percent share, making them a major pillar of adoption in many cities.
- States like Uttar Pradesh, Maharashtra and Karnataka emerged as top EV markets, reflecting their large bases, policy support and better charging ecosystems.
Challenges Ahead in 2026
Despite strong momentum, a few hurdles could affect the pace of EV adoption in 2026.
- Upfront cost pressure: Entry‑level and mass‑market EVs remain costlier than comparable ICE cars, especially after recent tax changes benefitting smaller ICE vehicles.
- Charging access beyond metros: Public and residential charging is improving, but availability in smaller cities and rural areas still lags, limiting broader adoption.
- Consumer awareness and resale concerns: Many buyers still worry about battery life, residual value and long‑term maintenance, which slows conversion from ICE to EV.
Forecasts & Market Outlook
Available projections suggest that India’s EV story remains on a strong, long‑term growth path.
- Passenger EV sales are expected to grow further in 2026, though the YoY rate may moderate from the extraordinary 77 percent surge seen in 2025.
- Overall auto industry growth for 2026 is projected in the 6–8 percent range, with EVs steadily increasing their share as more models come in and charging improves.
- Medium‑ and long‑term forecasts point to a robust CAGR for EVs through 2030 and beyond, driven by policy continuity, local cell manufacturing and maturing consumer acceptance.
India’s EV market is clearly moving beyond its early‑adopter phase. Tata Motors remains in front, but JSW MG Motor and Mahindra have emerged as powerful challengers, while global and luxury brands add depth to the market. Through 2026, expect more competition, more choice and a steadily rising share of electric vehicles on Indian roads.