India’s electric two-wheeler market saw its registrations rise 22% year-on-year during the financial year 2026 (FY26) to 1.40 million units. The growth rate moderated from the year-ago period rather than the sharp spikes seen in earlier phases of EV adoption while penetration in overall sales increased.

The growth reflects a wider spread of products across different price points, improved availability, and gradual consumer acceptance, particularly in urban and semi-urban markets. Unlike the earlier years, traditional ICE OEMs now hold more than half of the electric two-wheeler market. TVS Motor emerged as the largest player in this segment, while Ola Electric, which was the market leader, fell to fifth place in sales.

The moderation in growth compared with previous years suggests the market is entering a more stable, demand-led phase rather than one driven purely by subsidies. The penetration levels continue to underline the gradual nature of the transition, accounting for around 6.5% of total two-wheeler sales in FY26, compared to 5.8% in the year-ago period.

Industry participants say adoption is being supported by higher aspirational value, improved product quality and a broader choice of models, especially from established OEMs. Pricing remains a key factor, with the narrowing cost differential between electric and ICE two-wheelers influencing purchase decisions, particularly in the entry and commuter segments.

TVS Motor emerged as the leader. It registrations were at 340,758 units, marking a 43% year-on-year increase. The company’s market share rose to 24.3% from 20.7%, reflecting steady scale-up in volumes and consistent demand. Bajaj Auto closed as the second-largest player with 288,866 units, recording 25% growth year-on-year. Its market share improved modestly to 20.6% from 20.1%, indicating stable expansion but at a slower pace compared to rivals.

Ather Energy and Hero MotoCorp emerged as the fastest-growing players among the top six in FY26. Ather’s registrations came in at 238,461 units, representing a jump of 82%, while its market share expanded sharply to 17% from 11.4%. Hero MotoCorp’s registrations almost tripled to 144,099 units. This rapid expansion helped the company increase its market share to 10.3% from 4.2%.

In contrast, Ola Electric saw a sharp decline in its sales during the year. Its registrations halved to 164,215 units and market share fell significantly to 11.7% from 29.2%, indicating loss of momentum in a highly competitive market. Greaves Electric rounded out the top six players, registering 61,641 units, a 51% increase year-on-year. The company’s market share improved to 4.4%, gaining 85 basis points.

Monthly momentum remained strong at the end of the fiscal. March 2026 registrations rose 45% year-on-year and 70% sequentially to 190,941 units, aided by year-end dispatches, dealer stocking and improved supply alignment. The sharp month-on-month jump also indicates that underlying demand remains intact, even as the market navigates changing dynamics.

The broader trend through FY26 points to a gradual shift in market dynamics, with established two-wheeler manufacturers such as TVS Motor, Bajaj Auto and Hero MotoCorp strengthening their presence. Their gains are being driven by stronger dealer networks, better brand value and service reach, which are increasingly becoming critical as the market matures.

Government subsidies under the PM E-Drive scheme, and earlier under the FAME programme, have played a key role in driving the adoption of electric vehicles. Subsidies for electric two-wheelers are now set to end in July. Several OEMs have said the industry is better prepared to sustain growth even without demand subsidies, as production volumes have increased and scale efficiencies have improved.