FY2026 will be remembered as the year India's electric vehicle market crossed a critical mass threshold. Total EV retail sales reached approximately 2.45 million units -- a 25% jump from FY2025's 1.97 million. Every major segment grew. Electric two-wheelers, the backbone of India's EV revolution, crossed 1.4 million units with TVS Motor dethroning Ola as market leader. In electric cars, Tata Motors extended its dominance with 92,000+ units while Mahindra entered the fray with the BE 6 and XEV 9e. And critically, the charging infrastructure kept pace, with 27,737 charging stations now operational across India.
FY2026 -- The Numbers That Matter
India sold approximately 2.45 million electric vehicles in FY2026, up from 1.97 million in FY2025. That is a 25% year-on-year increase. To put this in perspective, FY2024 saw around 1.6 million EV sales, meaning the market has grown by over 50% in just two years.
The growth is not evenly distributed across segments. Electric two-wheelers continue to dominate, accounting for 57% of all EV sales. Electric three-wheelers (primarily e-rickshaws and last-mile delivery vehicles) make up roughly 30-32%. Electric cars, while growing fast in percentage terms, still account for only about 5-6% of total EV volumes -- though they represent a much larger share of the market by value.
The total Indian passenger vehicle market itself set a record in FY2026, with over 47 Lakh cars sold. Within this, electric cars represent roughly 2-3% of total car sales by volume -- still small, but growing at a pace that far outstrips the overall market's 8-10% growth.
Electric Two-Wheelers -- TVS Takes the Crown
The electric two-wheeler segment sold approximately 1.4 million units in FY2026, a 22% increase from FY2025's 1.15 million. The big story was the leadership change at the top. TVS Motor emerged as the new market leader, selling 341,471 units -- a 44% increase year-on-year -- and capturing 24% market share.
TVS's rise was driven by three factors: the iQube's expanding variant range (now covering the 75,000-1.5 Lakh price band), the launch of the Orbiter cruiser-style e-scooter, and the introduction of a Battery-as-a-Service (BaaS) model that reduces the upfront purchase price. The BaaS option, in particular, has been a game-changer for price-sensitive urban commuters who want to go electric but baulk at the 1.2-1.5 Lakh price of a fully battery-included e-scooter.
BaaS explained: Under the Battery-as-a-Service model, the buyer purchases the scooter without the battery (saving 30-40% of the cost) and pays a per-kilometre or monthly subscription fee for battery usage. Maruti Suzuki's e Vitara has also adopted a BaaS option in the car segment, suggesting this model is gaining traction across vehicle types.
Electric Cars -- Tata Dominates, Mahindra Enters
Tata Motors sold over 92,000 electric cars in FY2026, a 43% year-on-year increase. This is a remarkable achievement considering that Tata's total passenger vehicle sales (ICE + EV) of 6.42 Lakh units were already the company's highest ever. The EV portfolio now accounts for roughly 14% of Tata's passenger vehicle volumes.
The Nexon EV remains Tata's bestselling electric car, followed by the Punch EV and Tiago EV. The Harrier EV, launched in March 2026, added a premium option to the lineup. The newer Curvv EV, a coupe-SUV, has also been gaining momentum since its launch.
| Brand | FY2026 EV Sales | YoY Growth | Key Models |
|---|---|---|---|
| Tata Motors | 92,000+ | +43% | Nexon EV, Punch EV, Tiago EV, Curvv EV, Harrier EV |
| Mahindra | ~25,000 | New entrant | XEV 9e, BE 6 |
| MG Motor | ~18,000 | +15% | ZS EV, Comet EV |
| Hyundai | ~12,000 | +60% | Ioniq 5, Creta Electric (late FY26) |
| Maruti Suzuki | ~5,000 | New entrant | e Vitara (launched Feb 2026) |
| BYD | ~8,000 | +40% | Atto 3, Seal, e6 |
Mahindra's entry into the EV car market with the XEV 9e and BE 6 was the other major story. Launched on the dedicated INGLO platform with 800V architecture, these models positioned Mahindra as a credible premium EV player. Mahindra became India's second-largest EV maker in March 2026, pipping MG Motor on monthly volumes.
Market context: As covered in our earlier EV sales analysis, the electric car segment's growth has been amplified by the entry of mainstream brands. With Maruti Suzuki's e Vitara crossing 30,000 bookings within weeks and Hyundai's Creta Electric arriving, FY2027 is expected to be even bigger for electric cars.
Government Policy -- PM E-DRIVE and Beyond
Government policy has been a tailwind for EV adoption. The PM E-DRIVE scheme, extended to July 2026, allocates 10,900 Crore for EV incentives -- though notably, it does not subsidize electric cars (only two-wheelers, three-wheelers, buses, and charging infrastructure). State-level policies have filled some of this gap, with Delhi, Maharashtra, Gujarat, Karnataka, and Tamil Nadu offering their own EV incentives and tax benefits.
The GST reduction on select passenger vehicles also helped. While not EV-specific, it reduced effective prices on certain vehicle categories, indirectly supporting EV sales by stimulating overall auto demand. The combination of central schemes, state incentives, and expanding charging infrastructure has created a policy environment that, while imperfect, is clearly supportive of electrification.
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What Is Next for FY2027
Industry consensus points to India crossing 3 million EV sales in FY2027. Several factors support this projection. In electric cars, the full-year impact of Maruti e Vitara, Hyundai Creta Electric, and Tata Sierra EV launches will be felt. Tata Motors alone is targeting over 1.2 Lakh EV sales. In electric two-wheelers, the sub-1 Lakh price segment is expanding rapidly, making e-scooters accessible to a much broader audience.
Charging infrastructure will continue to scale. With 27,737 stations already installed and operators like ChargeZone planning 1,000+ highway stations, the infrastructure story is improving quarter by quarter. The government's target of 72,000 chargers across 50 highway corridors under PM E-DRIVE, while ambitious, is directionally on track.
Battery costs continue to fall globally, though the pace has slowed from the dramatic declines of 2020-2023. Lithium-iron-phosphate (LFP) chemistry, now the default for mass-market Indian EVs, has stabilized around $70-80/kWh at the pack level. Further cost reduction will come from local cell manufacturing under the PLI scheme, with several plants expected to come online in FY2027-28.
What This Means for Used Car Buyers
The 2.45 million EVs sold in FY2026 means that by FY2029-30, there will be a substantial pool of 3-5 year old used EVs entering the market. This is already beginning with early Tata Nexon EVs, Tata Tigor EVs, and MG ZS EVs from 2021-2023 appearing on platforms like VahanBazaar.
Used EV pricing has stabilized significantly. A 2022 Tata Nexon EV with 30,000-40,000 km typically trades at 9-11 Lakh, compared to a new Nexon EV starting price of approximately 15 Lakh. That is a 27-40% depreciation in 3-4 years -- better than most ICE equivalents in the sub-compact SUV segment, partly because EV running costs are dramatically lower (roughly 1-1.5 per km for electricity vs 5-7 per km for petrol).
Battery health is the key concern for used EV buyers. Most Indian EVs come with 8-year/1.6 Lakh km battery warranties, and warranty transfer to second owners is typically supported by Tata and MG. With proper thermal management, modern EV batteries retain 85-90% capacity after 5 years of use in Indian conditions. Hyundai and Mahindra EVs use 800V architecture with superior thermal management, which further improves battery longevity.
Used EV buyer tip: When evaluating a used EV, always request the battery health report from the manufacturer's authorized service centre. Look for state of health (SoH) above 85%. Check the remaining warranty period -- this is the single most important protection against an expensive battery replacement.
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