TL;DR
India's electric passenger vehicle market saw a remarkable 102% year-on-year growth in Q2 2026, driven by a wider product range, better availability, and cost-effectiveness compared to traditional vehicles.
India's Electric Passenger Vehicle (EPV) market experienced a significant surge, growing by 102 percent year-on-year in the second quarter of 2026. This growth notably outpaced the broader passenger vehicle market's 26 percent increase. According to a report by CyberMedia Research (CMR), this acceleration is attributed to an expanded product portfolio, improved vehicle availability, and the compelling total cost of ownership economics offered by EVs.
The report also indicates that new model launches from original equipment manufacturers (OEMs) have broadened consumer choice. Simultaneously, elevated petrol prices have amplified the running-cost advantage of electric vehicles, attracting many internal combustion engine (ICE) vehicle buyers to the electric segment.
CMR forecasts that electric vehicles will constitute 7-8 percent of India's passenger vehicle market by the end of 2026. Additionally, connected vehicles are projected to capture 40-45 percent of the market share, driven by demand for over-the-air updates, EV software integration, and expanding 4G/5G infrastructure for real-time safety and diagnostics.
