EV boom gathers pace as electric car sales jump 95% on fuel prices, new models

Mumbai: Extending the previous months' momentum, India's electric car market nearly doubled in September, with sales surging 95% to 34,894 units from 17,924 units a year ago, showed data from the government's Vahan portal. Penetration of electrics in the passenger vehicle market rose to 8.2% in September from 5.7% a year earlier. E-car sales have been advancing every month since March, with the exception of August when sales fell sequentially.

Also Read: Auto makers post strong sales ahead of festive season

Besides geopolitical tensions triggering a spike in fuel prices, EV sales are getting support from an improving charging infrastructure and the launch of newer models across price points.


EV market leader Tata Motors retained its lead at 42.2% share, while Mahindra held 22.2%. VinFast surged to an 8.5% share in its first full year, while Maruti Suzuki entered the market with a 3.1% share. Despite an 8.9% volume growth, JSW MG saw its share fall to 15% as competition intensified. Registrations in the first nine months of the calendar year advanced 83% to 248,890 units from 135,682 units a year earlier.

Tata Motors crossed the 100,000-unit mark for the first time since it entered the market in 2020, with a 40.9% year to date share. Mahindra was the biggest gainer among the earlier entrants, adding 4.6 percentage points to reach 23.3%. VinFast and Maruti have already captured 5% and 4.3% YTD share, respectively, pointing to a rapidly changing competitive landscape, the data showed.

Among the other established brands, BYD's September sales rose 13.5% year-on-year to 831 units, but its market share declined to 2.4% from 4.1% a year earlier. For the first nine months, BYD sales grew 17.3% to 5,684 units, taking its share to 2.3% from 3.6%. Hyundai also lost ground, with YTD sales declining 18.3% to 4,972 units and its share falling to 2%.

Also Read: India EV Boom 2026: Electric cars race ahead – until price, policy and reality hit the brakes

The widening field of competitors is altering the market's competitive structure. Tata and Mahindra together accounted for 64.4% of September sales, broadly stable from 63.3% a year earlier, even as newer entrants gained ground. On a YTD basis, two together accounted for 64.2% of market, up from 58.3% a year earlier.

Sales at Kia soared 110% in September and 284% in the first nine months, although from a smaller base, while Toyota entered the market with 218 registrations in September. Stellantis reported a 64% YTD drop in registrations.