Electric Car Adoption in India Accelerates in FY26 as Sales Surge 83%

India’s electric passenger vehicle (PV) segment witnessed strong growth in FY26, with total retail sales rising 83.63% year-on-year to 1,99,923 units, compared to 1,08,873 units in FY25. This sharp increase also pushed EV market share to 4.2%, up from 2.6% in the previous fiscal, underlining accelerating adoption across the country.

Tata Motors Passenger Vehicles Ltd retained its leadership position in the EV PV space, recording sales of 78,811 units in FY26, up 35.90% from 57,994 units in FY25. However, its dominance is gradually being challenged by fast-growing rivals.

JSW MG Motor India Pvt Ltd posted a robust 73.67% growth, with volumes increasing to 53,089 units from 30,569 units last fiscal, strengthening its position as the second-largest EV player.

The standout performer was Mahindra & Mahindra Limited, which recorded an extraordinary 407.01% jump in sales to 42,721 units, up from just 8,426 units in FY25. This surge is because of the brand’s aggressive push in the EV segment.

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Hyundai Motor India Ltd also saw strong traction, with volumes rising 137.59% to 5,885 units, while BYD India Private Limited grew 54.01% to 5,361 units.

Kia India Private Limited posted the highest percentage growth among legacy OEMs, with sales surging 794.26% to 3,738 units, albeit on a low base. Meanwhile, BMW India Pvt Ltd grew 123.86% to 3,537 units, reflecting rising demand in the premium EV segment.

New entrants like VinFast Auto India Pvt Ltd and Tesla India Motors and Energy Pvt Ltd recorded initial volumes of 2,390 units and 342 units respectively, marking their early presence in the market.

On the other hand, Mercedes-Benz AG saw a 9.51% decline, while Stellantis Automobiles India Pvt Ltd and Volvo Auto India Pvt Ltd reported declines of 71.39% and 5.21% respectively.

So, FY26 reflects a clear shift towards electrification with both mass-market and premium segments contributing to growth. Increasing model availability, improving infrastructure, and rising consumer acceptance are expected to further accelerate EV adoption in FY27.