Registrations of electric passenger vehicles in India rose 79% year-on-year in May to 26,319 units, as rising fuel costs, better charging infrastructure and a broader selection of electric models drew more buyers to the market.
The registrations rose 1% from April, while electric cars accounted for around 6.4% of total passenger vehicle registrations in May, up from 5.9% in April. In the first two months of the current financial year, electric passenger vehicle registrations climbed 77% to 52,274 units.
Higher registrations reflect the strengthening demand for battery-powered vehicles as automakers expand their model portfolios and buyers increasingly weigh lifetime ownership costs against conventional petrol and diesel vehicles.
Tata Motors retained its leadership position in the segment, registering 10,236 electric cars in May and capturing 39% of the market. Mahindra & Mahindra followed with 6,133 units and a 23% share, while JSW MG Motor India registered 4,936 units, accounting for 19% of the market. Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said the company is already seeing signs of a sharp shift in consumer demand.
A notable development was the rise of Maruti Suzuki, which has made its mark in the electric vehicle segment following the launch of its first battery-electric model, the eVitara.
The country's largest carmaker registered 1,577 electric vehicles in May, making it the fourth-largest player in the market. Its volumes exceeded those of Hyundai Motor India, VinFast and BYD, despite entering the segment only a few months ago.
Maruti Suzuki's registrations rose 22% from April, among the strongest monthly growth rates recorded by major manufacturers. The company also gained market share during the month, reflecting growing acceptance of its first electric offering.
VinFast was in the top five with 1,224 units. Among other manufacturers, Mercedes-Benz posted the strongest month-on-month growth, with registrations rising 71%, while BYD recorded a 67% increase. Tata Motors and Mahindra & Mahindra reported gains of 4% and 6%, respectively.
Several automakers, however, witnessed softer demand compared with April. Registrations at Hyundai fell 19%, while Tesla and Kia recorded declines of 15% and 14%, respectively. Volvo and PCA Automobiles also reported sharp month-on-month drops.
Industry executives and analysts expect the momentum to continue through the current financial year, with electric vehicle adoption set to enter its strong growth phase so far.
Industry estimates suggest electric passenger vehicle penetration could rise to around 8% during the financial year ending March 2027, compared with roughly 4.2%-4.5% in the previous year.
India's passenger vehicle industry sold about 4.7 million vehicles in the last financial year, of which electric cars accounted for around 200,000 units. If overall passenger vehicle sales rise to about 4.9 million-5 million units this year, an 8% penetration rate would translate into annual electric vehicle sales approaching 400,000 units, effectively doubling the market within a year.
While electric vehicles currently account for about 15%-16% of Tata Motors' sales, bookings have risen to nearly 23%, indicating demand is running ahead of available production capacity.
"In the last two months, the jump has been two to two-and-a-half times of what it used to be. In the last 15 days, things have changed completely. It is even more sharper growth," Chandra said recently.
To meet rising demand, Tata Motors is working to increase monthly electric vehicle production by around 50%, taking output from about 10,000 units to roughly 15,000 units over the coming months.
"With the West Asia crisis, there has been a significant increase in demand for new-energy vehicles. I doubt that any of the industry was prepared from a supply-chain point of view," JSW MG Motor India Managing Director Anurag Mehrotra said. He added that consumers are increasingly evaluating the total cost of ownership rather than focusing solely on the purchase price.
"Consumers have understood the unit economics," Mehrotra said, pointing to lower running costs, reduced operating expenses and better long-term affordability as key reasons behind the growing acceptance of electric vehicles.