New Players Reshape India’s Electric CV Ecosystem The Evolution of India’s e-CV Landscape

India’s electric commercial vehicle (CV) sector is entering a new phase of competition as traditional dominance gives way to a more fragmented landscape thanks to the entry of new players. Tata Motors, the undisputed leader in this niche but growing category, saw its market share tumble from 65.91% in FY24 to 48.46% in FY25, according to the latest vehicle retail data from the Federation of Automobile Dealers Associations (FADA).

While Tata remains the market leader with 4,286 EV CVs sold during the fiscal year, its shrinking slice underscores a shifting dynamic. However, the top three OEMs—Tata Motors, Switch Mobility Automotive, and the Mahindra Group—still control a commanding 69.27% of the electric CV space. Switch Mobility, the EV arm of Ashok Leyland, made one of the most striking gains. From a modest 2.19% share in FY24, it leapt to 11.09% in FY25, delivering 981 electric CVs.

The growth is attributed largely to successful bids in state transport undertakings and increasing deployment of its electric buses in Tier 1 and Tier 2 cities. Meanwhile, Mahindra Group, including its dedicated EV subsidiary Mahindra Last Mile Mobility Ltd, expanded its collective market share to 9.72%, selling 860 units in total. The rise from 6.09% a year earlier reflects Mahindra’s push into last-mile cargo and passenger segments, where electric threewheelers and compact e-vans are gaining traction.

Also elbowing in are companies like Olectra Greentech and PMI Electro Mobility, which are aggressively scaling their presence in the electric bus market. Olectra sold 710 units, representing 8.03% of the total electric CV market. PMI, another specialist in e-bus fleets, followed with 482 units and a 5.45% share.

Both firms have gained ground via state-level contracts, though not without turbulence. Olectra was recently at the center of a highprofile controversy in Maharashtra, where the state transport authority abruptly cancelled a major tender order involving its buses, citing alleged process irregularities.

High Voltage, Low Stability

India's push to electrify its commercial vehicle fleet is a market defined by explosive potential and underlying fragility, a dynamic captured perfectly in its recent sales performance. In May 2025, the sector witnessed a remarkable 84.36% year-over-year surge in retail sales of electric commercial vehicles (e-CVs), reaching 1,019 units. This impressive growth, however, is not the full story. It stands in stark contrast to the data from just two months prior.

In March 2025, overall e-CV penetration had fallen to just 1%, a significant drop from the 2.3% achieved in March 2024, with market leader Tata Motors experiencing a sharp 80.47% year-over-year decline in its e-CV sales for that month. This volatility is not random; it is a direct consequence of a market highly sensitive to policy shifts.

By FY30, ICRA also expects to see a sharp increase in the EV penetration in bus sales to 30% from 7-8% in FY25, and in light commercial vehicles it is seen at 12-16%, up from 1-2%. The demand in these segments is expected to be backed by government support, lower cost of ownership, and declining battery prices.

Growth will be aided by “the continued support from the government through the PM E-DRIVE Scheme and the extension of the support system to the entire ecosystem, wherein technology related aspects are being taken care into the incentive bracket.

We expect that it is a matter of time. The shift towards a higher penetration is going to happen,” said Srikumar Krishnamurthy, Vice President and Co-Group Head, Corporate Ratings, ICRA.