Data show strong consumer demand and an expanding product lineup
Electric passenger vehicle (e4W) registrations in India saw a sharp surge in FY26, rising 88 per cent on-year to 1.91 lakh units from 1.01 lakh in the previous fiscal, according to Vahan data, reflecting strong consumer demand and an expanding product lineup.
Market leader Tata Motors retained the top position but saw its market share decline to 38.7 per cent in FY26 from 53.3 per cent a year ago, indicating intensifying competition. JSW MG Motor, the second-largest player, also witnessed a drop in share.
In contrast, Mahindra Electric Automobile posted a sharp rise, with market share climbing to 20.8 per cent from 7.5 per cent, emerging as a strong challenger. The company, along with new entrants VinFast and Maruti Suzuki — which began registrations during the fiscal — drove volumes in the second half.
Notably, in March alone, Maruti Suzuki and VinFast displaced JSW MG Motor and BYD India to claim the fourth and fifth spots, respectively, highlighting the rapidly evolving competitive landscape.
Industry experts attributed the surge to new product launches and a deepening pipeline. Models such as the Maruti e-Vitara, Mahindra XEV 9s, and Tata Punch EV — absent a year ago — have significantly boosted volumes, said Gaurav Vangaal of S&P Global Mobility. With more launches planned annually, EV penetration is expected to increase further.
Vinkesh Gulati, former President of Federation of Automobile Dealers Associations and Chairman of Automotive Skills Development Council, noted that the top three players now control nearly 87 per cent of the market, signalling a shift from a single-leader phase to a “high-growth, competitive triopoly”.
Long-term case
According to CRISIL Ratings’ Director Poonam Upadhyay, improved charging infrastructure, wider OEM participation, and enhancements in range and features could accelerate further adoption. Ongoing geopolitical volatility in West Asia is also reinforcing the long-term case for electrification by underscoring fuel price and supply uncertainties, she added.
Kranthi Bathini of WealthMills Securities observed that the EV market is becoming increasingly crowded, with a “second wave” of players — Maruti Suzuki, VinFast, and Hyundai — collectively contributing over 2,000 units a month.
Another analyst pointed out a significant structural shift with JSW MG Motor and Mahindra Electric together having overtaken Tata Motors, swinging from a combined deficit of 17,000 units last year to a surplus of over 17,000 units this year. This marks a transition from a leader-dominated market to a more competitive, multi-player ecosystem, the analyst said.
Published on March 31, 2026
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