India’s Electric Vehicle Sales Reach Record 2.45 Million in FY26, Driven by Strong Growth in Cars
India has achieved a significant milestone in its electric vehicle (EV) market, with sales surpassing 2 million units for the first time. The Federation of Automobile Dealers’ Association (FADA) reported that a total of 2.45 million EVs were sold in the fiscal year 2025-26, marking a 25% increase from the previous year. This growth was driven primarily by strong sales in two- and three-wheelers, as well as a notable rise in electric car purchases.
Record Sales in Two-Wheelers
The surge in electric vehicle sales was largely propelled by the two-wheeler segment, which saw a remarkable increase in demand. In FY26, approximately 1.4 million electric two-wheelers were sold, up from 1.15 million units in FY25. Leading brands such as TVS, Bajaj Auto, and Ather played a crucial role in this growth, capturing a significant share of the market. The increasing popularity of electric scooters and bikes reflects a broader shift towards sustainable transportation options among Indian consumers. This trend is expected to continue as more manufacturers introduce innovative models and competitive pricing strategies.
Growth in Three-Wheelers and Commercial Vehicles
The three-wheeler market also demonstrated impressive growth, with sales reaching 830,000 units in FY26, compared to 700,000 units the previous year, representing a 19% increase. Major contributors to this segment included Mahindra and Mahindra, Bajaj Auto, and TVS, which have been expanding their electric offerings. Additionally, the commercial vehicle sector saw a remarkable 121% growth, with 19,454 electric units sold, up from 8,820 in FY25. This growth indicates a rising acceptance of electric vehicles in various transportation sectors, highlighting the potential for further expansion.
Electric Car Sales Surge
Electric car sales experienced a staggering 84% increase, with nearly 200,000 units sold in FY26, compared to about 110,000 units in the previous fiscal year. This growth can be attributed to the introduction of new models and strategic price reductions by manufacturers. Tata Motors led the car segment, selling 78,811 units, a 36% increase from the previous year. Following closely was JSW MG Motor, which saw a 74% rise in sales, reaching 53,089 units. Mahindra & Mahindra also made significant strides, achieving a remarkable 407% growth with 42,721 units sold. However, other manufacturers like Hyundai, BYD, and Kia are still working to scale their electric vehicle offerings compared to their traditional internal combustion engine models.
Market Dynamics and Future Outlook
The overall growth in India’s electric vehicle market reflects a broader commitment to sustainable transportation and energy transition. FADA President C S Vigneshwar emphasized that FY26 marked a pivotal year for electric mobility in India, with strong double-digit growth across all vehicle categories. The push for improved charging infrastructure and anticipation of stricter emission norms have prompted manufacturers to invest heavily in electric vehicle technology. While established players like Tata Motors and Mahindra are leading the charge, new entrants like Tesla and luxury brands such as BMW are also making their mark. As the market evolves, the competition is expected to intensify, paving the way for a more sustainable automotive future in India.
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