TL;DR
India's EV market is rapidly expanding, driven by significant growth in two-wheelers, goods vehicles, and passenger cars, alongside the entry of new manufacturers and supportive government policies.
India's electric vehicle (EV) market is experiencing rapid acceleration, marked by robust growth across various segments and the entry of new manufacturers. Electric two-wheelers constituted approximately 8.4 percent of new registrations by mid-2026, while the electric goods vehicle (E-GV) segment, including e-trucks, saw an impressive 172 percent year-on-year growth. The passenger EV market continues to be dominated by domestic players like Tata Motors, with popular models such as the Nexon EV and Punch EV, alongside Mahindra & Mahindra and Maruti Suzuki's e Vitara.
International and joint-venture auto companies, including MG Motor India, Hyundai, and BYD, are also actively contributing to the market with locally produced and imported EV models. Notably, Vietnamese manufacturer VinFast recently expanded its operations into India with a localized production plant in Tamil Nadu, signaling growing confidence in the Indian EV landscape. The concept of battery-as-a-service (BaaS) is gaining traction, appealing to a broader consumer base by separating battery ownership from vehicle purchase.
This EV surge is not just limited to hatchbacks and compact cars; manufacturers are increasingly launching mid-size and premium electric SUVs, broadening consumer choice. The number of EVs has significantly risen, with registrations on the Vahan portal increasing by 91 percent to 19.68 lakh in the last fiscal year from fiscal 2020, driven by supportive government policies like PLI schemes and the PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme.
