Electric vehicle momentum builds in India with 24.6% growth in FY26

India’s shift towards electric mobility gathered pace in FY26, with retail volumes climbing to 24.52 lakh units, up 24.6 per cent from the previous year. The rise was not limited to one category, as two-wheelers, three-wheelers, passenger vehicles and commercial vehicles all posted solid double-digit gains.

Passenger EVs near 2 lakh milestone

The most notable change came from electric passenger vehicles, where adoption accelerated rapidly. Retail sales reached 1,99,923 units, compared to 1,08,873 units a year earlier, translating to an 83.63 per cent jump. The segment fell just short of the 2 lakh mark but recorded its strongest annual expansion yet.

In terms of volumes, Tata Motors Passenger Vehicles retained its lead with 78,811 units. JSW MG Motor India followed with 53,089 units, while Mahindra & Mahindra recorded 42,721 units.

Two-wheelers anchor overall volumes

Electric two-wheelers continued to account for the bulk of EV sales. The segment crossed the 14 lakh mark, growing 21.81 per cent to 14,01,818 units in FY26, up from 11,50,790 units.

TVS Motor Company led the category with 3,41,513 units. Bajaj Auto secured the second position at 2,89,349 units, while Ather Energy posted 2,39,178 units.

Three-wheelers remain a core segment

Electric three-wheelers sustained their role in urban mobility and last-mile transport. Sales rose to 8,30,819 units, marking an 18.97 per cent increase over FY25’s 6,98,914 units.

Commercial EVs see fastest expansion

Although volumes remain comparatively small, electric commercial vehicles recorded the steepest growth rate. Retail sales more than doubled to 19,454 units from 8,820 units last fiscal, reflecting a 120.57 per cent increase.

Momentum continues across segments

Summing up the year, FADA President CS Vigneshwar said, "FY'26 has been a watershed year for India's electric mobility story. Total EV retail across two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles stood at approximately 24.52 lakh units, growing nearly 24.6 per cent YoY, with every category delivering strong double-digit growth."

He further noted, "This is not just an automobile industry achievement, it is a testament to India's ability to lead a mass-market energy transition, from the last-mile auto-rickshaw to the family car."

The consistent rise across segments indicates that demand is broadening, with electric mobility gaining stronger acceptance across both personal and commercial use.

(With inputs from PTI)

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