TL;DR
India's EV market is seeing a surge in luxury car sales, while the mass-market segment struggles with affordability and declining adoption rates.
India's electric car market is experiencing a significant shift towards premium models, with vehicles priced above ₹20 lakh quadrupling their market share to 26.4% in FY26. This growth is driven by a consumer base less sensitive to upfront costs and a greater availability of advanced, feature-rich vehicles in the higher price brackets.
Conversely, the entry-level EV segment, for cars under ₹10 lakh, saw its share more than halve to 6.9% in FY26. This growing divide highlights an affordability gap, as manufacturers prioritize higher-margin vehicles. While the overall EV market exceeded 200,000 units, its penetration remains low at 4.2%, suggesting that the current focus on premium EVs might impede widespread adoption unless affordability challenges are addressed through innovative battery technology and local manufacturing.
