India's EV Sales Cross 1 Million Mark in H1 FY26 Despite Some Slowdown

India has hit a milestone in electric mobility as EV registrations surpassed one million units during the first six months of FY26, according to a report by ET Auto. This development comes despite a marginal decline in September's monthly figures, primarily driven by reduced sales in the passenger electric vehicle category. Data from the Vahan platform revealed that September recorded 1.82 lakh EV registrations, representing a 3 per cent decrease from August's 1.88 lakh units. 

Despite this monthly setback, the second quarter of FY26 demonstrated robust growth with 5.70 lakh units registered, compared to 5.33 lakh units in the first quarter (Q1). The half-yearly total reached 1.1 million units, marking an increase from 8.95 lakh units during the same period last year.

Also read: Auto Sales Fall 13% In September Despite Strong Navratri Recovery: Vahan Data

Passenger Vehicles Face Headwinds

The passenger EV segment, including cars and SUVs, experienced a notable contraction in September with registrations dropping to 15,100 units from August's 18,290 units. Industry experts point to recent GST adjustments favoring conventional and hybrid vehicles as the primary factor behind this decline.

The revised tax structure lowered GST on traditional internal combustion engine vehicles from 28 per cent to 18 per cent, while hybrid vehicles over 4 metres saw rates reduced from 43 per cent to 40 per cent. Electric vehicles maintain a preferential 5 per cent GST rate, but the narrowing price differential has impacted consumer choices.

"The GST cut on hybrids has intensified the dilemma for customers, pulling EV penetration in the passenger vehicle segment down from nearly 5 per cent to about 4 per cent," Puneet Gupta, Director at S&P Global Mobility, was quoted as saying.

Two And Three-Wheelers Maintain Momentum

In contrary to the passenger vehicle segment, electric two and three-wheelers demonstrated stable performance. Electric two-wheeler registrations remained consistent at approximately 1.04 lakh units in September, virtually unchanged from August's 1.05 lakh units. The three-wheeler category recorded 61,000 registrations, slightly below the previous month's 63,500 units.

Among two-wheeler manufacturers, TVS Motor maintained its market leadership position with 22,491 registrations.