Electric Vehicle Sales In India Rise 24.6% In FY26

As per the Federation of Automobile Dealers Associations (FADA), EV retail sales in India rose 24.6% YoY to 24.52 lakh units in FY26, indicating a strong demand in all segments.

At the same time, sales of other vehicles also increased by 13.3%, going up to 2.96 crore units during the period. But the retail EV market is growing at nearly double the rate of the general auto market.

This strong growth directly benefits listed EV manufacturers, along with battery, charging, and ancillary ecosystem companies. On 7 April 2026, their market performance also mirrored this. Leading EV maker Tata Motors' Commercial share price jumped by 1.2% to reach ₹396.05 at the close, whereas Bajaj Auto rose by the same level to ₹9,049.50 at the end of the day.

Two-Wheelers Were The Biggest Contributor

Electric two-wheelers don’t just cost less upfront; they are also economical to maintain and ideal for daily commutes in urban areas. In FY26, their sales crossed 14 lakh units (a growth of 21.8% YoY), making them the main contributor to this high EV growth in the country.

How Did The Other Segments Perform?

The electric vehicle segment today is still quite small compared to the overall market, but the pace at which it is gaining popularity is very high. The sales volume for the electric vehicle segment in FY26 was just under 2 lakh units, and in certain markets, their sales almost doubled vis-à-vis last year. Since new vehicle models are being introduced and charging infrastructure is getting enhanced, the segment's growth rate is likely to pick up further in the near future.

Electric three-wheelers have particularly excelled in their performance, especially in the commercial sector and for last-mile delivery. Their cumulative sales surpassed 8 lakh units in FY26, which makes it one of the most electrified segments in the country.

Electric commercial vehicle sales surged more than 2x at 19,454 units for the year.

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The Bigger Picture

Growing by nearly 25% in a year, EVs are clearly gaining wider acceptance. But there are still challenges that need to be overcome. High buying costs, inconsistent charging infrastructure, and dependency on the supply chain could slow the pace if not addressed soon.

Sources:

Business Standard

The Hindu