EV sales jump 53% on PVs, 2-wheelers in India
India's electric vehicle (EV) market has witnessed a remarkable surge, with sales jumping 53% in the latest fiscal year, driven primarily by passenger vehicles (PVs) and two-wheelers. According to data from the Society of Indian Automobile Manufacturers (SIAM) and other industry sources, the total EV sales reached 1.68 million units in FY2025-26, up from 1.1 million in the previous year. This growth underscores a significant shift in consumer preference towards cleaner mobility solutions, supported by government incentives and expanding charging infrastructure.
The passenger vehicle segment led the charge, with EV sales growing by 88% year-on-year, reaching 210,000 units. Meanwhile, the two-wheeler segment, which includes electric scooters and motorcycles, saw a 48% increase, totaling 1.38 million units. The commercial vehicle segment also recorded a modest uptick, with sales rising to 25,000 units from 18,000, reflecting a growing adoption in last-mile logistics. However, the overall EV penetration in the passenger vehicle market remains at around 7%, indicating substantial room for growth.
Industry analysts attribute this surge to several factors, including the introduction of more affordable models, improvements in battery technology, and the expansion of charging networks across tier-2 and tier-3 cities. Additionally, state-level subsidies and the central government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme have played a crucial role in reducing the upfront cost of EVs. However, challenges such as range anxiety and high initial costs persist, particularly in the commercial segment.
Looking ahead, the market is expected to continue its upward trajectory, with projections suggesting that EV sales could account for 15% of total vehicle sales by 2030. This optimism is buoyed by investments from both domestic and international automakers, who are ramping up production capacities and launching new models tailored to Indian conditions. The recent reduction in battery prices, coupled with the government's push for local manufacturing, is likely to further accelerate adoption.
| Segment | FY2024-25 Sales (units) | FY2025-26 Sales (units) | YoY Growth |
|---|---|---|---|
| Passenger Vehicles | 112,000 | 210,000 | 88% |
| Two-Wheelers | 932,000 | 1,380,000 | 48% |
| Commercial Vehicles | 18,000 | 25,000 | 39% |
| Total | 1,100,000 | 1,680,000 | 53% |
"The rapid growth in EV sales, particularly in the two-wheeler segment, signals a paradigm shift in Indian mobility. However, sustained policy support and infrastructure development are essential to maintain this momentum."
As the market evolves, consumers are increasingly considering total cost of ownership, which now favors EVs over internal combustion engine vehicles in many scenarios. The resale value of EVs is also improving, further enhancing their appeal. For those looking to explore the latest EV models and compare specifications, Autoverse provides comprehensive reviews and expert insights.
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