EV penetration across two-wheelers, passenger vehicles and light trucks softened in November as GST-led price cuts made ICE models more attractive, even as overall retail demand stayed strong on festive spillover and improving affordability, according to an Equirus Securities report.
08 Dec 2025 | 3116 Views | By Darshan Nakhwa
India’s electric mobility market lost some momentum in November 2025 as GST-led affordability improvements in internal combustion engine (ICE) vehicles resulted in a visible shift in buyer preference across two-wheelers, passenger cars and light commercial vehicles. While overall industry demand remained healthy, buoyed by festive spillover and improving retail sentiment, ...
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India’s electric mobility market lost some momentum in November 2025 as GST-led affordability improvements in internal combustion engine (ICE) vehicles resulted in a visible shift in buyer preference across two-wheelers, passenger cars and light commercial vehicles. While overall industry demand remained healthy, buoyed by festive spillover and improving retail sentiment, electric vehicle (EV) penetration slipped across most categories, according to Equirus Securities.
The electric two-wheeler (E2W) sales declined 3% year-on-year to 117,000 units in November, and penetration dropped to 4.6%, from the 7% levels seen in the first half of FY26. Analysts noted that the decline was broad-based across regions and categories, driven by a post-GST rate cut demand surge for ICE 2W and ongoing supply-side challenges that constrained E2W availability.
Despite the softer market, legacy manufacturers strengthened their leadership in E2W segment. TVS Motor regained the No. 1 position with an all-time-high 26% market share, supported by the phased scale-up of the newly launched Orbiter. Bajaj Auto held a steady 22% share, despite moving to No. 2 position. Ather Energy slipped slightly to 17%, down from 20% in October, though its Rizta scooter continued to attract strong bookings. Hero MotoCorp delivered a standout performance, growing 66% year-on-year to capture 10% share--enough to overtake Ola Electric, whose sales fell 71% as it ceded space rapidly in a more competitive, post-GST market.
Even as EV-specific demand softened, the broader retail environment remained strong. Two-wheeler retail sales for October-November grew 21% YoY, indicating that festive demand remained robust and continued into the post-festive period.
India’s electric passenger vehicle (PV) category also experienced a deceleration in penetration. Electric car sales rose 63% year-on-year to 14,700 units in November; however, penetration stood at just 3.7%, well below the pre-GST level of 5%. Analysts attributed the trend to a sustained consumer shift toward ICE cars following GST rate cuts, which significantly improved affordability.
Tata Motors Passenger Vehicles Ltd, while still the market leader, saw its EV share drop from 49% a year earlier to 41% in November. The carmaker did stabilise from the mid-year trough of 35% due to the rollout of the Harrier EV. JSW MG Motor, which had gained strong traction in FY25 with the Windsor EV, saw momentum soften yet remained the second-largest EV player with around 25% share. Mahindra intensified competition, lifting its share from 6% to 20% in a year after the introduction of the BE 6 and XEV 9e.
The broader PV market, meanwhile, continued to benefit from GST-led affordability. Retail sales grew 20% YoY in November, supported by improved vehicle availability and residual festive demand. CNG penetration eased slightly to 21% from 23% in October, while mild hybrid penetration rose to 6%, reflecting shifting consumer interest toward fuel-efficient alternatives.
Electric bus penetration improved from 2% in November 2024 to 5% in November 2025. However, the segment remained volatile due to its dependence on government tenders and lumpy delivery schedules. Olectra Greentech led the market with a 24% share, though down from 36% in October. PMI Electro Mobility held 19%, and Switch Mobility secured 14%.
Analysts noted that while electric buses had begun to gain acceptance among state transport undertakings, the market was still in an early adoption phase and far from stabilising.
In the light and medium-duty truck (LMDT) segment, diesel continued to dominate with around 80% market share, followed by CNG at 15-16%. Electric penetration in LMD trucks, while rising steadily through the year, moderated to around 2% in recent months as GST cuts improved the value proposition for ICE trucks.
Tata Motors, the segment’s leading EV player, had been losing share over six months, settling at around 40% in November.
The three-wheeler segment continued to serve as the strongest pillar of EV adoption. After a brief dip in October, electric three-wheeler (E3W) penetration rebounded sharply to 62% in November. Overall E3W sales rose 32% YoY to 83,700 units, while electric auto (e-auto) volumes increased 28% to 23,400 units.
Mahindra remained the dominant player with a 46% e-auto share, recovering strongly after stabilising around 40% earlier in the year. Its steady climb from 40% in May 2025 to 46% in November underscored the success of its product upgrades and dealer network strengthening efforts. In contrast, Piaggio continued to lose ground; its share fell from 13% in November 2024 to just 6% in November 2025. Bajaj Auto’s e-auto, launched in June 2023, continued to gain traction, reaching 37% share.