Fresh FADA data shows January 2026 registrations surging 55% year-on-year, with Tata, JSW MG, and Mahindra all posting strong gains.
11 Feb 2026 | 555 Views | By Arunima Pal
The numbers are in, and the headline is encouraging. India’s electric passenger vehicle market registered 18,470 retail units in January 2026, according to data released by the Federation of Automobile Dealers Associations (FADA) — a 23.59 per cent jump over December 2025’s 14,944 units and, more significantly, a robust 54.75 ...
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The numbers are in, and the headline is encouraging. India’s electric passenger vehicle market registered 18,470 retail units in January 2026, according to data released by the Federation of Automobile Dealers Associations (FADA) — a 23.59 per cent jump over December 2025’s 14,944 units and, more significantly, a robust 54.75 per cent increase over January 2025’s 11,935 units. Tata Motors crossed 8,000 units for the first time in months, JSW MG Motor topped 4,700, and Mahindra — which barely had an EV presence a year ago — registered 3,668 units, a near-fivefold surge year-on-year. Among the newer entrants, VinFast Auto continued its quiet upward march with 435 units, while Maruti Suzuki posted 215 units — the first meaningful sign of what is expected to be a market-defining entry once the e-Vitara hits full stride.
The January data matters because it arrives at a moment of transition. Calendar year 2025 closed as a record-breaker for India’s e-PV segment: 1,76,538 electric cars and SUVs found owners, a staggering 77 per cent jump over CY2024’s 99,693 units. Eleven of the twelve months recorded five-figure sales, festive October touched an all-time monthly high of 19,161 units, and no fewer than eight OEMs posted their best-ever annual electric sales. By any measure, 2025 was the year India’s e-PV story grew up.
Yet the final quarter also exposed how quickly policy shifts can alter the trajectory. The implementation of GST 2.0 in late September 2025 — which slashed the tax on sub-4-metre petrol and diesel cars from 28 per cent to 18 per cent while leaving the 5 per cent EV rate unchanged — dramatically narrowed the price gap that had been one of electric vehicles’ strongest selling points. The impact was immediate: EV market share, which had peaked at 5.4 per cent in August, cratered to 3.3 per cent in October even as EV volumes were healthy, because ICE sales exploded. November and December saw volumes dip below the 15,000-unit mark. January 2026’s strong rebound, then, is the first clear signal that the post-GST correction may be bottoming out. This feature analyses FADA retail data across the six-month window from August 2025 to January 2026, tracing the pre-GST peak, the correction, and what appears to be the beginning of a recovery.
The numbers tell a vivid story. In August 2025, a month buoyed by the tail end of a strong Q3 and pre-festive stocking, 17,393 electric PVs found owners. September saw a dip to 15,329 units — a natural month-on-month decline, but still a year-on-year increase of nearly 148 per cent over September 2024’s 6,191 units. October, the festive blockbuster month, roared to 18,055 units, driven by Navratri and Diwali buying frenzy. But then the music changed.
November 2025 registered just 14,850 units, a sharp 17.75 per cent month-on-month decline, even as the overall PV market — supercharged by GST 2.0 — hit record highs. December held nearly flat at 14,944 units. Then January 2026 surged back to 18,470 units, the highest monthly tally in the six-month window and a 54.75 per cent jump over January 2025.
But perhaps more telling than absolute volumes is the EV market share metric. In August 2025, electric PVs accounted for 5.4 per cent of total passenger vehicle retails — the highest penetration recorded at the time. By October, that figure had cratered to 3.3 per cent, not because EV sales collapsed, but because ICE sales exploded under the new tax regime. The festive plus GST double-whammy pushed overall PV retails to record highs, diluting the EV share even as EV volumes in October were actually robust at over 18,000 units. November and December saw gradual recovery to 3.8 and 3.9 per cent respectively, before a slight dip to 3.6 per cent in January 2026.
Table 1: Monthly Electric PV Retail Registrations (Aug 2025 – Jan 2026)
|
Month |
Total Retails |
EV Market Share (%) |
|
Aug 2025 |
17,393 |
5.4% |
|
Sep 2025 |
15,329 |
5.1% |
|
Oct 2025 |
18,055 |
3.3% |
|
Nov 2025 |
14,850 |
3.8% |
|
Dec 2025 |
14,944 |
3.9% |
|
Jan 2026 |
18,470 |
3.6% |
Source: FADA Research, Vahan portal data
The GST Council’s decision, effective 22 September 2025, was sweeping. The old four-slab structure was collapsed into two main rates — 18 per cent for most goods and 40 per cent for luxury items — with the compensation cess scrapped entirely. For automobiles, this meant sub-4-metre petrol and diesel cars saw their effective tax rate fall from around 28 per cent plus cess to a flat 18 per cent. Larger vehicles and luxury cars moved to 40 per cent, but even here, the removal of the cess meant an effective reduction in many cases.
The impact on ICE sales was electric, if one may use the irony. October 2025 saw total PV wholesales surge 17 per cent year-on-year to 4.7 lakh units — an all-time record. Maruti Suzuki hit its highest-ever monthly dispatches. Toyota surged 43 per cent. Kia posted its best-ever month. Against this tsunami of ICE buying, the 18,055 electric PVs sold in October, while a perfectly healthy number by historical standards, were reduced to a 3.3 per cent sliver of the pie.
The structural challenge for EVs was clear: with the EV GST rate unchanged at 5 per cent, the tax differential between electric and conventional vehicles had narrowed substantially. A buyer weighing a compact petrol SUV against its electric equivalent now faced a significantly smaller price premium for going electric — upending one of the key value propositions that had driven EV adoption through 2025’s first three quarters.
Tata Motors: still No. 1, but the crown fits less comfortably
Tata Motors remains India’s largest electric PV manufacturer by a wide margin, but the narrative has shifted decisively from dominance to defence. In the six months under review, Tata’s monthly e-PV retails ranged from a low of 6,153 units in November 2025 to a high of 8,007 units in January 2026. The January number, representing a 50.71 per cent year-on-year jump, offers encouragement — but context is important.
As recently as early 2024, Tata commanded upwards of 70 per cent of the e-PV market. By the end of CY2025, that share had been compressed to around 40 per cent, according to FADA data. The erosion has not been primarily a story of falling Tata volumes — the company’s CY2025 EV total of over 81,000 units was a record — but rather of a rapidly expanding market in which competitors have grown faster. The Nexon EV remains the single largest-selling electric car in India, and the Curvv EV, launched in mid-2024, has added a second credible nameplate. But the Curvv’s initial momentum appears to have cooled, with monthly sales declining from a peak of over 5,000 units in late 2024 to roughly 1,000 by November 2025. The Harrier EV, introduced in the first half of 2025, and the Sierra EV have added firepower, but the broader trend is unmistakable: Tata is sharing the spoils with more players than ever before.
JSW MG Motor: The Windsor Revolution
If there is one company that has fundamentally altered the competitive dynamics of India’s e-PV market, it is JSW MG Motor. The joint venture between China’s SAIC Motor and India’s JSW Group has been a persistent electric vehicle advocate since it introduced the ZS EV in 2020, but it was the September 2024 launch of the MG Windsor EV that changed everything.
The Windsor — a spacious, tech-laden crossover utility vehicle priced from Rs 9.99 lakh under the innovative Battery-as-a-Service (BaaS) model — became India’s best-selling EV within weeks of launch and held that crown for ten consecutive months. In its first full calendar year, the Windsor clocked an estimated 46,735 wholesale dispatches, accounting for over 60 per cent of JSW MG’s total volumes. The BaaS model, which separates the battery cost from the vehicle price and charges a per-kilometre rental, proved a masterstroke: it made a full-size electric CUV available at the price of a manual compact SUV, removing the single biggest barrier to EV adoption.
In the FADA retail data for the August 2025–January 2026 period, JSW MG registered 4,781 units in August, dipped to 3,559 in December, then surged to a commanding 4,703 in January 2026. The company’s EV market share, which stood at 19 per cent a year earlier, had climbed to roughly 29–31 per cent by mid-2025. Crucially, EVs now account for 70–80 per cent of JSW MG’s total sales in India, making it arguably the most EV-committed mainstream manufacturer in the country. The recently launched MG M9 MPV, the Cyberster roadster, and the ZS EV refresh have broadened the electric portfolio further. JSW MG’s stated ambition of one new product every six months signals that the pressure on rivals will only intensify.
Mahindra: the excitement machine
Mahindra’s entry into the premium electric SUV space has been nothing short of spectacular. The twin launch of the XEV 9e and BE 6 in November 2024, built on the company’s purpose-designed INGLO platform, was one of the most talked-about automotive events in recent Indian history — generating over 4 billion views on social media and racking up 30,179 bookings on the very first day, worth an estimated Rs 8,472 crore at ex-showroom prices.
Deliveries commenced in March 2025, and by November, the company had sold over 30,000 units of the BE 6 and XEV 9e combined — one every 10 minutes, as Mahindra liked to point out. The FADA data shows Mahindra’s steady ascent: from 3,512 units in August 2025 to a peak of 3,911 in October, followed by a correction to 2,966 in November before recovering to 3,668 in January 2026. The year-on-year growth numbers are staggering — a 582.74 per cent jump in September over September 2024, and a 395.68 per cent surge in January 2026 over January 2025 — reflecting a base effect as much as genuine demand, since Mahindra’s EV presence was virtually nil until early 2025.
What makes Mahindra’s story compelling is not just volumes but brand positioning. The BE 6, with its Lamborghini Urus-esque design, 5-star Bharat NCAP safety rating, Harman Kardon audio with Dolby Atmos, and Qualcomm Snapdragon 8295 chipset, has positioned itself as a premium-yet-accessible electric SUV. The Batman Edition, limited to 999 units, sold out in 135 seconds. The Formula E Edition followed in November 2025. And the XEV 9e, the more premium of the two, has consistently attracted 56–59 per cent of bookings. With the larger-battery Pack Two variant (79 kWh, 500 km real-world city range) now in delivery and the seven-seater XEV 9S launched in late November 2025, Mahindra is rapidly building a comprehensive electric portfolio that trades directly in the aspiration space where EVs need to win hearts, not just calculations.
The mid-tier and new entrants: where the real action is
Below the big three, the e-PV market is witnessing an explosion of new entrants and established players expanding their electric footprints.
Kia India has been one of the more surprising performers. From a near-negligible base of 20 units in September 2024, the company surged to 506 units in September 2025 and 656 in October, before settling at 309 in January 2026. The growth — a breathtaking 2,430 per cent year-on-year in September — is driven by the Kia EV6 and the newly introduced Carens Clavis EV. At current trajectory, Kia is establishing itself as a credible mid-volume electric player.
BYD India presents a more complex picture. The Chinese giant, which dominates global EV markets, has had a muted run in India. Monthly retails peaked at 570 units in October 2025 before declining to 231 in January 2026 — a 31.66 per cent year-on-year decline. The Atto 3 and Seal have found niche audiences, but BYD’s pricing and positioning have struggled against the aggressive value propositions from JSW MG and Mahindra. The upcoming Atto 2, targeting the Rs 15–25 lakh sweet spot, could change the game.
Hyundai Motor India, despite being India’s second-largest PV manufacturer, has been a surprisingly late and tentative entrant to the mass-market EV space. The Creta Electric, launched at the Bharat Mobility Expo in January 2025, was expected to be a category-shaker given the ICE Creta’s dominance in the compact SUV segment. But monthly retails have been modest: 588 in August 2025, falling to 263 in December before recovering to 333 in January 2026. The numbers reflect supply constraints more than demand issues — Hyundai has been cautious with production ramp-up — but the 0.60 per cent year-on-year growth in January is telling. In a market growing at 50–77 per cent, Hyundai’s electric story remains a work in progress.
VinFast Auto, the Vietnamese manufacturer making its Indian debut, is one of the more fascinating new entries. Absent from the FADA data until October 2025, VinFast has registered a steady upward trajectory: 131 units in October, 291 in November (a 122 per cent month-on-month jump), 376 in December, and 435 in January 2026. The VF6 and VF7, manufactured at the company’s new plant in Thoothukudi, Tamil Nadu, are aggressively priced and feature-rich. VinFast has confirmed plans for a third model, the seven-seater Limo Green MPV, in early 2026. It is still early days, but the growth curve bears watching.
Tesla India has also made its India entry during this period, though with the caution one might expect from a premium brand in a price-sensitive market. With 64 units in September 2025, its first month on the FADA data, Tesla has fluctuated between 37 and 68 units per month — consistent with the Model Y’s premium positioning and limited initial availability.
Maruti Suzuki, India’s largest car manufacturer, makes its first appearance in the EV data in December 2025 with just 9 units, likely initial dealer stock of the soon-to-be-launched e-Vitara. By January 2026, that number had jumped to 215 — a 2,288.89 per cent month-on-month increase that, statistical quirks aside, signals the imminent arrival of the country’s most-awaited electric vehicle. Given Maruti’s unrivalled dealer network, manufacturing scale, and brand trust among first-time car buyers, the e-Vitara has the potential to meaningfully expand the e-PV addressable market.
Table 2: OEM-wise Electric PV Retail Registrations (Aug 2025 – Jan 2026)
|
OEM |
Aug '25 |
Sep '25 |
Oct '25 |
Nov '25 |
Dec '25 |
Jan '26 |
|
Tata Motors |
7,111 |
6,216 |
7,239 |
6,153 |
6,460 |
8,007 |
|
JSW MG Motor |
4,781 |
3,912 |
4,549 |
3,693 |
3,559 |
4,703 |
|
Mahindra |
3,512 |
3,243 |
3,911 |
2,966 |
3,083 |
3,668 |
|
BYD India |
450 |
547 |
570 |
425 |
237 |
231 |
|
Kia India |
446 |
506 |
656 |
464 |
313 |
309 |
|
Hyundai Motor |
588 |
349 |
444 |
372 |
263 |
333 |
|
BMW India |
368 |
310 |
310 |
268 |
345 |
321 |
|
VinFast Auto |
- |
- |
131 |
291 |
376 |
435 |
|
Mercedes-Benz |
77 |
97 |
90 |
69 |
68 |
70 |
|
Tesla India |
- |
64 |
40 |
48 |
68 |
37 |
|
Maruti Suzuki |
- |
- |
- |
- |
9 |
215 |
|
Total |
17,393 |
15,329 |
18,055 |
14,850 |
14,944 |
18,470 |
Source: FADA Research. Numbers exclude TS (Telangana). Data collated from MoRTH/Vahan portal.
In the premium electric segment, BMW India has maintained a consistent 268–368 unit monthly range, with the iX, i4, and i7 finding favour among the luxury EV buyer. Mercedes-Benz, after a promising 2024, has seen its numbers soften — from 97 units in September to a steady 68–70 in late 2025 and early 2026. The decline of 32.69 per cent year-on-year in January 2026 (70 units vs 104 in January 2025) suggests the EQS and EQA are facing headwinds. Volvo Auto India, with its XC40 Recharge and the recently launched EX30, has posted modest but growing numbers: from 16 units in August to 36 in January 2026, a 24.14 per cent year-on-year increase.
First, the e-PV market is structurally growing. Despite the GST headwind, January 2026’s 18,470 units represented a 54.75 per cent year-on-year increase over January 2025’s 11,935. The post-GST dip in market share is real, but it reflects the denominator effect of a booming ICE market as much as any weakness in EV demand.
Second, competition is the great accelerator. The transformation of the e-PV market from a one-brand show to a genuine multi-player contest has expanded the market itself. In January 2025, only about 10 OEMs had meaningful EV retail numbers. By January 2026, that list includes 15, with VinFast, Tesla, Maruti Suzuki, and Stellantis adding fresh diversity. JSW MG’s BaaS innovation forced incumbents to rethink pricing. Mahindra’s premium positioning proved that Indian buyers will pay for aspirational electric SUVs. Each new entrant expands the consideration set for buyers who might not have previously thought about going electric.
Third, the price sensitivity of India’s EV adoption is now proven. The speed and magnitude of the market share shift post-GST 2.0 confirms that for the majority of Indian car buyers, the decision between electric and conventional is still fundamentally an economic one. The tax-driven narrowing of the price gap was enough to slow EV penetration even as absolute volumes remained healthy. This has implications for policy — maintaining or widening the fiscal incentive for EVs will be critical to sustaining adoption rates.
Fourth, the product mix is shifting upmarket. The success of Mahindra’s BE 6 and XEV 9e, both priced well above Rs 18 lakh, and the strong performance of the MG Windsor at Rs 14–18 lakh, suggests the e-PV market is increasingly a mid-to-premium affair. Entry-level electric cars like the Tata Tiago EV and MG Comet, while still selling, are not driving the growth narrative. This is consistent with global patterns, where EV adoption typically starts in higher price bands and cascades down as battery costs decline and economies of scale kick in.
Fifth, the next 12 months will be pivotal. Maruti Suzuki’s e-Vitara, with its potential to bring millions of Maruti loyalists into the EV fold, represents the single biggest wildcard in the market. Hyundai’s Creta Electric, once supply ramps up, could be equally transformative given the ICE Creta’s massive installed base. Tata’s Sierra EV targets the lifestyle SUV buyer. BYD’s Atto 2 aims at the value segment. VinFast’s MPV could open a new category. And the infrastructure story — charging network expansion, battery swapping, home charging solutions — will increasingly determine whether the market doubles again or plateaus.
India’s electric passenger vehicle market in early 2026 finds itself at a fascinating inflection point. The euphoria of 2025’s record growth is tempered by the reality that policy shifts can swiftly alter the competitive landscape. The GST 2.0 correction was a reminder that the EV transition in India is not yet self-sustaining — it still depends, to a significant degree, on favourable tax differentials and incentive structures.
But the deeper structural forces at work are more encouraging. Product quality has improved dramatically. Battery costs are declining globally. The charging ecosystem, while still nascent, is expanding rapidly. Consumer awareness and willingness to consider electric vehicles have never been higher. And perhaps most importantly, the competitive intensity in the market — driven by the likes of JSW MG, Mahindra, and the incoming wave of global OEMs — is ensuring that the choices available to Indian buyers are better, more diverse, and more attractively priced with each passing quarter.
The e-PV market’s January 2026 resurgence to 18,470 units suggests that the post-GST correction may already be bottoming out. Whether the recovery sustains into a new growth phase will depend on how quickly OEMs can absorb the changed pricing dynamics, how aggressively new models are launched, and whether policymakers choose to reinforce the fiscal support for electric mobility. What is no longer in doubt is that India’s electric car market is a genuine multi-brand, multi-segment, multi-price-point contest — and that is perhaps the healthiest sign of all.