TL;DR
India's electric two-wheeler market maintained stable penetration in February, but faces potential sales fluctuations due to the PM E-Drive subsidy expiry in March.
India's electric two-wheeler (E2W) market demonstrated stable penetration rates in February 2026, despite a general decline in overall vehicle registrations. This resilience, however, comes with a significant near-term risk: the impending expiry of the PM E-Drive subsidy scheme in March 2026. Experts anticipate a surge in pre-buying during March, followed by a potential correction in sales in April.
While overall electric passenger vehicle (EPV) sales also saw a month-on-month contraction, their penetration rate remained steady at 3.5%. Mahindra & Mahindra emerged as a key performer in the EPV segment, gaining market share thanks to a positive response to its new XEV 9S model. The report highlights that geographically, Kerala and Karnataka led E2W penetration in February.
