Friday, 31 Jul, 2026
Photo courtesy: Pixabay
Electric passenger vehicle registrations gathered pace through the year, rising 68% to 64,361 units in the first quarter and 93.2% to 86,689 in the second. June alone saw a record 31,823 registrations.
India’s electric passenger vehicle (e-PV) market is no longer a two-horse race. The arrival of Maruti Suzuki, VinFast and Tesla is reshaping competition, broadening consumer choice and accelerating adoption without dethroning incumbent leaders.
According to Federation of Automobile Dealers Associations (FADA) Research, the three new entrants together registered 12,244 electric passenger vehicles during the first half of calendar 2026, accounting for 8.1% of the market and nearly 18% of the incremental registrations during the period.
The timing coincides with a boom in the country’s EV market. Overall e-PV registrations surged 81.6% year-on-year to 151,050 units during January-June 2026, compared with 83,190 units a year earlier, underscoring that the market is expanding rapidly rather than merely redistributing market share.
Among the newcomers, Maruti Suzuki emerged as the biggest contributor, registering 6,386 vehicles and capturing a 4.2% market share. Vietnamese automaker VinFast followed closely with 5,622 registrations and a 3.7% share, while Tesla, despite its much-anticipated India entry, recorded 236 registrations during the period.
The momentum gathered pace as the year progressed. Maruti’s registrations climbed from 1,460 units in the first quarter to 4,926 units in the second, while VinFast’s sales more than doubled from 1,630 to 3,992. Together, the two companies increased their combined market share from 4.8% in the first quarter to 10.3% in the second, suggesting buyers are becoming more receptive to new brands.
The broader market dynamics support that trend. India Ratings and Research (Ind-Ra) expects electric passenger vehicles to account for 6-8% of India’s passenger vehicle sales in FY27, up from 4.4% in FY26, driven by a wave of new product launches.
According to Shruti Saboo, Director, Corporates at Ind-Ra, India’s EV market continues to display strong long-term growth potential, supported by improving ownership economics, expanding model availability and rising consumer acceptance. She noted that future market-share shifts are likely to depend less on first-mover advantage and more on product quality, pricing and customer experience, much like the conventional passenger vehicle market.
While competition has intensified, Tata Motors remains firmly in command. The company retained its leadership with a market share of about 38%, as registrations rose 82% year-on-year to 57,665 units, broadly matching the industry's overall growth rate.
The biggest gain among established manufacturers came from Mahindra & Mahindra. Its registrations jumped 146% to 33,982 units, lifting its market share to 22.5% from 16.6% a year earlier—the largest increase among incumbent players.
Not every established manufacturer kept pace. JSW MG Motor saw registrations rise 18% to 31,741 units, but because overall market growth was much faster, its market share declined sharply to 21% from 32.3%. Hyundai faced an even steeper setback, with registrations falling 36.5% to 2,718 units, reducing its share to 1.8% from 5.1%.
As a result, the combined market share of the three largest manufacturers fell to 81.7% in the first half of 2026 from 87% a year earlier, pointing to a steadily broadening competitive landscape.
Importantly, the numbers suggest the newcomers are expanding the market rather than simply taking sales from incumbents. Even excluding Maruti Suzuki, VinFast and Tesla, India’s electric passenger vehicle registrations would still have grown by roughly 67%, indicating that fresh product offerings are attracting first-time EV buyers instead of merely shifting customers between brands.
Growth also accelerated through the year. E-PV registrations increased 68% year-on-year to 64,361 units in the first quarter before accelerating to 93.2% growth and 86,689 units in the second. June alone recorded 31,823 registrations, the highest monthly volume during the period.
The data points to an EV market entering its next phase. Early adoption led by a handful of players is giving way to broader competition, where success will increasingly depend on model range, pricing, charging ecosystem and after-sales service. For consumers, that means greater choice. For automakers, it marks the beginning of a more demanding race.
