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TVS E-Scooter Sales Cross a Million, Last 100,000 iQubes, Orbiters Sold in 75 Days

Ajit Dalvi — Thu, 11 Jun 2026 09:33:10

TVS Motor Co has become the second Indian electric two-wheeler manufacturer, after Ola Electric, to achieve the one-million (10 lakh) retail sales milestone in India. A deep dive into cumulative sales numbers reveals that since launch in January 2020, the Chennai-based TVS Motor Co has delivered a total of 10,04,148 e-scooters comprising the iQube and the recently launched Orbiter to its customers in the domestic market. This is as per data on the Vahan portal (June 11, 2026, 6 a.m.).

While the first 100,000 iQube retail sales in India took a little over three years, the run from 100,000 to 200,000 units was achieved in far less time – just 10 months – in tandem with the growth of the EV industry. The 300,000-unit wholesales milestone was surpassed in early April 2024, 52 months after launch. The real growth for the TVS iQube came after that. The ride from 300,001 to 700,000 units took just 17 months, and 700,001 to 800,000 units just three months (October-December 2025).

TVS’ share of all-India e-2W sales hit the 20% mark in CY2023 and is currently at its highest – 26% – in CY2026 YTD. While the iQube commands the bulk of the sales, the Orbiter has joined the party.

CY2026 is turning out to be a bumper year for TVS e-2W Inc – between January 1 and June 11, the company has delivered 219,232 units, with the last 100,000 e-scooters delivered to customers in just 75 days! The math works out to 1,333 iQubes and Orbiters sold each day from March 28 to June 10. TVS’ e-scooter sales in the current year to date include a monthly best of 51,605 units in May 2026, which remains the second-highest score for an Indian e-2W OEM after Ola Electric’s 53,647 units in May 2024.

TVS, which topped e-2W monthly sales for the first time in April 2025, continues to lead its rivals, which include Bajaj Auto, Ather Energy, Ola Electric and Greaves Electric Mobility.

TVS: A Key Driver of India’s Electric Two-Wheeler Success Story

TVS Motor Co, which plugged into electric mobility in January 2020, has, just like arch-rival Bajaj Auto, ranked among a handful of OEMs in the 175-player-strong industry which, with their annually rising volumes, are the key growth drivers of India’s electric two-wheeler success story.

From just 1,516 units a decade ago and a meagre 0.008% share of India 2W Inc’s sales of 18.81 million motorcycles, scooters and mopeds, the electric two-wheeler segment has blossomed. In the current year’s first five months and 10 days, with 837,961 units sold and robust 63% YoY growth, the e-2W share of total two-wheeler sales (ICE and EV) of 10.1 million units (1,01,42,279) currently stands at 8.26%.

The e-2W industry, which provides the most affordable form of e-mobility, understandably leads in terms of volume contribution to overall India EV sales. In CY2026 YTD, the current e-2W share is 63%, followed by e-3Ws (27% share), e-passenger vehicles (9% share) and e-commercial vehicles (1% share).

The increase in TVS’s e-2W sales volumes is reflected both in overall e-2W sales and its share of the market (refer to the seven-year data table above). From a minuscule 1% (234 units) in CY2020, the TVS iQube’s share rose to 8% (50,181 units) in CY2022 and then jumped into double digits – 20% – in both CY2023 (177,024 units) and CY2024 (237,096 units).

CY2025 (315,083 units) was a standout year for the company because not only did it become the e-2W industry’s No. 1 player from April onwards, but it also crossed the 300,000 milestone and helped propel the overall e-2W segment’s sales to a record 1.34 million units. No. 2 OEM Bajaj Auto (279,682 units, 21% share) and third-ranked Ather Energy (214,982 units, 16% share) were the other key growth accelerators last year. Ola Electric (204,514 units, 15% share) was followed by Hero Vida (113,023 units, 8% share) and Greaves Electric Mobility (57,851 units, 4% share).

In CY2026 YTD (January 1-June 10), India’s e-2W Inc’s sales of 837,961 units are already 62% of CY2025’s record sales. Currently averaging monthly sales of over 155,000 units, and with tailwinds from rising petrol prices as a result of the West Asia crude oil supply crisis, as well as the festive season later this year, the Indian e-2W industry could even be headed towards a record 2 million units this year.

TVS Motor Co, which has sold 219,232 iQubes and Orbiters to date this year, has already achieved 70% of its record e-scooter sales of 315,083 units in CY2025. If TVS maintains its daily run rate (1,361 units for the past 161 days) through the rest of the year, the manufacturer of the iQube and Orbiter e-scooters could even be looking at hitting the 500,000-unit, or half-a-million annual sales milestone, for the first time in CY2026.

ALSO READ: World Environment Day Special: 9.1 Million EVs Sold In India In The Past 10 Years

Kia Carens Sales Top 300,000 Units, Clavis and Clavis EV Power Speedier Growth

Ajit Dalvi — Wed, 10 Jun 2026 09:46:13

As accurately forecast in Autocar Professional’s sales analysis of the Kia Carens on February 15, 2026, Kia India’s premium MPV has surpassed the 300,000 cumulative wholesales milestone in May 2026. Since its launch on February 15, 2022, the Kia Carens has sold a total of 301,657 units in the domestic market, while over 32,000 units have been exported.

In Kia India’s seven-model portfolio, the Carens is the third highest-selling vehicle after the Seltos midsize SUV (646,902 units) and the Sonet compact SUV (547,252 units). The premium MPV has the same ranking in the current fiscal – the Seltos leads with 21,163 units (up 73%), followed by the Sonet (20,244 units, up 26%) and the Carens (11,673 units, up 19%) in the April-May 2026 period.

As a result of growing demand for the MPV, the duration between each 100,000-unit milestone has seen a reduction. While the first 100,000 units were sold in a little over 16 months the 200,000 milestone came in February 2025, 36 months or three years after launch – news which Autocar Professional broke and which was confirmed by Kia India with an official press release.

Given the fresh momentum coming from the new Carens Clavis (launched in May 2025) and its zero-emission avatar, the Carens Clavis EV (launched in July 2025), the last 100,000 units have been sold in 16 months. What also helped was the festive Diwali month of October 2025, when the Carens-Clavis-Clavis EV combine registered its highest monthly sales yet: 11,144 units.

In FY2026, with 79,202 units, the Kia Carens was India’s third highest-selling MPV. Demand for this model grew with the portfolio expanding to include the Carens Clavis and Clavis EV in mid-2025.

Carens Clavis and Clavis EV Boost Sales

The Carens brand has hugely benefited from the rollout of the Carens Clavis and Clavis EV models in May and July 2025, respectively. The last 12 months’ wholesales data depicts that – average monthly sales between June 2025 and May 2026 were 6,757 units compared to 5,312 units in the corresponding year-ago period.

The Carens Clavis, the successor to the Kia Carens, is targeted at buyers looking for a budget Kia MPV. It has minor styling updates, feature additions, more variants, and multiple powertrains (naturally aspirated petrol, turbo-petrol, and diesel) to choose from over the Carens. Depending on the variant, the Carens Clavis comes with the option of either six or seven seats. The Kia Carens Clavis price ranges between Rs 11.23 lakh and Rs 21.59 lakh (ex-showroom).

As a result of fresh customer demand for the expanded model portfolio comprising the Carens, Clavis, and Clavis EV, the Kia Carens brand registered its highest fiscal year sales of 79,202 units in FY2026, up 24% YoY (FY2025: 64,609 units). This gave the Carens a 27% share of Kia India’s record domestic market sales of 289,035 units and helped it maintain its ranking as India’s third-highest-selling MPV after the Maruti Ertiga (198,327 units) and the Toyota Innova/Crysta (112,163 units). In the current fiscal’s first two months, the Carens-Clavis-Clavis EV combine, with 11,673 units, has a 21% share of Kia India’s 54,872 sales, which are a 19% YoY increase (April-May 2025: 45,938 units).

Furthermore, Kia India’s much-improved standing in the electric vehicle market can be credited to the Carens Clavis EV, which is the company’s first made-in-India EV. With prices ranging between Rs 18 lakh and Rs 25 lakh (ex-showroom), it is the most affordable all-electric three-row MPV. Kia’s nine-variant electric MPV is offered with two battery pack options: a 42 kWh (Standard Range) and a 51.4 kWh (Extended Range). The Carens Clavis EV has an ARAI-claimed range of 404 km to 490 km on a full charge, depending on the model.

In CY2025, this zero-emission avatar of the Carens Clavis helped Kia India retail a record 3,096 EVs, up 621% YoY (CY2024: 429 units), and increase its e-PV market share to 1.54% from 0.41% in CY2024. In the first five months of CY2026, Kia India has delivered 2,035 EVs, which gives it a 2% share of the 114,402 electric passenger vehicles sold in India. Customer demand for the Carens Clavis EV is expected to grow with the recent introduction of the Battery-as-a-Service (BaaS) finance program supported by leading financiers, including ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, and Bajaj Finserv.

The Carens-Clavis-Clavis EV combine, with 301,657 units, has contributed 26% to Kia India’s total cumulative sales of 11,60,078 utility vehicles since February 2022, when the Carens was launched.

Carens’ Share of Kia India Sales Since Launch: 26%

Kia India has successfully positioned the Carens as a premium six-/seven-seater recreational vehicle with a blend of modern styling and features, and it is offered with six airbags as standard. The high-on-space and comfort Carens is targeted at large families scouting for a premium, spacious cabin as well as day-to-day practicality, and a choice of multiple powertrains, including electric now.

The Carens-Clavis-Clavis EV combine, with 301,657 units, has contributed 26% to Kia India’s total cumulative sales of 11,60,078 utility vehicles since February 2022, when the MPV was launched.

Given the 66,354 units sold and the strong 24% YoY growth that the Carens is witnessing in the current fiscal, it is set to register its best-ever fiscal year sales. With February and March wholesales still to be factored in, the Carens-Clavis-Clavis EV combine is currently just 3,860 units away from surpassing its FY2023 total of 70,314 units. Expect the Kia MPV to end FY2026 with record wholesales of around 77,500 units in the domestic market.

Maruti Victoris Races Past 100,000 Sales in 9 Months, Grabs 14% of Company’s UV Sales

Ajit Dalvi — Mon, 08 Jun 2026 09:41:44

The Maruti Suzuki Victoris midsize SUV, officially launched on September 3, 2025, with sales commencing 19 days later, has raced past the 100,000 cumulative wholesales milestone at the end of May 2026. Having crossed the first 50,000 sales in just five months, the next 50,000 units have been sold in just four months, reflective of the growing pace of demand for the midsize SUV.

The Victoris’ highest monthly wholesales (factory dispatches) were in January 2026 (15,240 units), when it was ranked India’s 10^th best-selling passenger vehicle and sixth among SUVs last month. As a result, that month saw the Victoris account for 20% of Maruti Suzuki India’s utility vehicle sales of 75,609 units, and it was the third best-selling UV for the company after the Ertiga MPV (17,892 units) and the Vitara Brezza compact SUV (17,486 units).

Underscoring the Victoris’ status as a key future growth driver for Maruti Suzuki India, which is the passenger vehicle and UV market leader, is the model’s 14% share of the 703,505 utility vehicles (UVs) that the company has sold between August 2025 and May 2026.

On the export front, the Victoris, which is rebadged as ‘Across’ for global markets, is also expected to play a key role for Maruti Suzuki. FY2026 saw the company achieve record overseas shipments of 443,825 units, which included 4,899 Victoris SUVs.

Compared to its donor model, the Nexa channel-retailed Grand Vitara, which took 12 months to hit 100,000 wholesales, the Maruti Victoris has taken only nine months to achieve the same milestone.

Fastest Maruti midsize SUV to 100,000 sales in India

From launch to 100,000-plus units in nine months, the Victoris has become the fastest model in Maruti Suzuki’s midsize SUV portfolio, which includes the Grand Vitara and new e-Vitara, to achieve this milestone. The Grand Vitara had taken 12 months to register the same number after its September 2022 launch.

The Maruti Victoris, though, is not the fastest to the 100,000-unit mark in India’s growing midsize SUV market. That accolade belongs to the facelifted Hyundai Creta which took just six months after its launch in January 2024 to hit the milestone. While the Kia Seltos, launched in August 2019, took a similar nine months, other rivals like the Mahindra Thar Roxx took 16 months and the Maruti-rebadged Toyota Hyryder took 26 months.

Sold through the company’s mass-market Arena channel, the Maruti Victoris has all of 21 variants on offer across six trim levels: LXi, VXi, ZXi, ZXi (O), ZXi+ and ZXi+ (O). Pricing starts from Rs 10.50 lakh for the base LXI MT variant to Rs 19.99 lakh (ex-showroom) for the top-end ZXi Plus (O) Strong Hybrid CVT variant.

The Victoris comes with a range of powertrain options: a 1.5-litre mild-hybrid petrol, a 1.5-litre CNG, and a 1.5-litre strong hybrid. Depending on the model, the mileage ranges between 19.07 kilometres per litre (kpl) and an ARAI-claimed 28.65kpl for the strong hybrid. While the Victoris hybrid is more fuel efficient than the Toyota Hyryder and Grand Vitara hybrids, the Victoris petrol is also more frugal than the Hyryder and Grand Vitara.

There are a number of reasons why buyers are flocking to the Victoris even though it does not have the punchy diesel or turbo-petrol engines of some rivals. This Maruti midsize SUV’s efficient powertrains, feature-packed interior, strong safety credentials in the form of Level 2 ADAS and a five-star Bharat NCAP rating, along with good ride and handling, make it a compelling choice. Add Maruti Suzuki’s widespread service network, and the Victoris comes across as a solid family-oriented SUV that competes strongly with the segment leader, the Hyundai Creta.

After the first two months of FY2027, the Victoris, with 24,554 units, is ranked the fourth best-selling Maruti UV after the Fronx, Ertiga and the Brezza, and is ahead of the Grand Vitara. If it maintains the same tempo of sales, there’s little doubting that the Victoris will surpass 150,000 units in its first full year of fiscal sales. But there’s a new challenger coming in the form of an upcoming Hyundai midsize SUV with petrol and CNG power. Watch this space for the latest in vehicle number-crunching across vehicle segments.

ALSO READ: Maruti Fronx becomes first Nexa SUV to register 500,000 sales

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Maruti Fronx Becomes First Nexa SUV to Register 500,000 Sales

Ajit Dalvi — Mon, 08 Jun 2026 09:20:57

May 2026 was a record-breaking month for Maruti Suzuki India in more ways than one. Its passenger vehicle wholesales rose 40% YoY to 190,337 units, and Maruti utility vehicle (UV) dispatches also hit a record monthly high of 79,267 units, up 44% YoY. The Maruti Fronx compact SUV had a key role to play in both of these statistics – at 20,686 units, the Fronx was the second best-selling PV after the Wagon R and the best-selling UV last month. This strong showing also meant that the Fronx, which was launched in April 2023, drove past the cumulative wholesale milestone of 500,000 units in the domestic market.

From launch till end-May 2026, the Baleno-based Fronx has logged total sales of 512,829 units and becomes the first Nexa-marketed SUV to achieve the half-a-million milestone. The 512,829 units sold in India give the Fronx a 22% share of the 2.2 million (22,80,628) UVs that Maruti Suzuki has sold in India since the premium compact SUV was launched in April 2024.

The last 100,000 units have been sold in a scant six months, affirming the Fronx’s rapid run in the ultra-competitive compact SUV market, which has 22 models in the fray. May 2026 (20,686 units) marked the third instance of the Fronx crossing 20,000 monthly sales after February 2025 (21,461 units) and December 2025 (20,706 units).

The Maruti Fronx, whose compact SUV siblings include the Brezza and the Jimny, clocked 100,000 sales in just 10 months, 150,000 units in 14 months, 200,000 in 17 months, 300,000 in a little over 23 months, the 400,000 milestone in 33 months, and now the 500,000 sales mark has come up in 38 months after launch.

The 512,829 units give the Fronx a 22% share of the 2.2 million (22,80,628) UVs that Maruti Suzuki has sold in India since the premium compact SUV was launched in April 2024.

In FY2024, its first fiscal year, the Fronx sold 134,735 units and had a 21% share of Maruti Suzuki’s 642,296 UVs. Sales rose 23% YoY in FY2025 to 166,216 units and a 23% UV share. FY2026, with 172,363 units, was its best year yet and gave it a similar 23% share of Maruti Suzuki’s record UV dispatches of 760,987 units. In all three fiscals, the Fronx was part of the Top 10 UVs list and was ranked No. 7 in FY2024, No. 5 in FY2025 and No. 7 in FY2026. In the first two months of FY2027, the 39,515 units (up 42% YoY) give it a 25% share of the 157,159 UVs that Maruti Suzuki factories have dispatched to dealers across India.

Stylish and Practical Compact SUV With Petrol and CNG Power

The smart-looking Fronx coupe-crossover has a strong road presence, what with it being based on the snazzy Baleno hatchback and sporting frontal design elements like the upright nose and split headlamps that look similar to the Grand Vitara midsize SUV.

The Maruti Fronx is powered by an efficient 1.2 petrol, which produces 90hp and 113 Nm torque, and a 1.0 turbo-petrol. The Boosterjet turbo-petrol engine, which develops 100hp and 147Nm, is paired to either a five-speed manual or a six-speed torque converter automatic.

Three months after the launch of the petrol-engined Fronx, Maruti Suzuki launched the CNG avatar of the Fronx, which has given a boost to sales. The Fronx CNG, with 77.5hp and 98.5 Nm, is claimed to deliver fuel efficiency of 28.51 km/kg.

The Fronx is sold in five trims – Sigma, Delta, Delta+, Zeta and Alpha – and 14 variants, with nine manual and four auto transmission options. Pricing starts at Rs 685,000 (ex-showroom Delhi) for the base Sigma variant and goes upwards to the top-end Alpha Turbo AT variant, which costs Rs 11.98 lakh (ex-showroom Delhi).

Fronx Currently Best-Selling Nexa Model. . . Ahead of Baleno and Grand Vitara

At present, after the first two months of FY2027, the Fronx is the best-selling Maruti Nexa model, ahead of both the Baleno hatchback (36,702 units) and the Grand Vitara midsize SUV (17,084 units). In FY2026, the Fronx (172,363 units) was Nexa’s second highest-selling model, albeit just 197 units behind the Baleno (172,560 units).

In terms of cumulative Nexa SUV sales, the half-a-million-sales-strong Fronx is the No. 1 model, followed by the Grand Vitara, XL6, the discontinued S-Cross, Jimny, Invicto and e-Vitara. While the Grand Vitara, which was launched six months before the Fronx, was the first to hit the 200,000 milestone, the younger Nexa sibling pipped it to the 300,000 milestone. Fiscal-year-wise, the Fronx outsold the Grand Vitara by 13,566 units in FY2024, by 42,570 units in FY2025 and by 88,514 units in FY2026. In the April-May 2026 period, the Fronx is ahead of its midsize SUV sibling by over 22,000 units, albeit, to be fair, the Grand Vitara belongs to a segment above the Fronx.

Notably, the Fronx’s sales performance should be viewed in the context of the highly competitive compact SUV market that it is part of. This segment includes models like the Tata Punch and Nexon, Maruti Brezza, Hyundai Venue and Exter, Mahindra 3XO, Kia Sonet and Syros, Skoda Kylaq, the new Nissan Gravite, as well as the Toyota Taisor, which is the rebadged Fronx produced by Maruti Suzuki for Toyota Kirloskar Motor.

The Fronx also shines on the export front. Over 175,000 units have been exported and, in FY2026, it was the No. 1 made-in-India export model (90,186 units) and accounted for 20% of Maruti Suzuki’s record exports of 443,825 passenger vehicles, and 10% of total PV exports of 905,200 units.

ALSO READ: Maruti Nexa sales cross 500,000 units for third fiscal in a row in FY2026

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World Environment Day Special: 9.1 Million EVs Sold In India In The Past 10 Years

Ajit Dalvi — Fri, 05 Jun 2026 17:03:40

Today – June 5, 2026 – is World Environment Day, which comes 45 days after World Earth Day (April 22) and 95 days before World EV Day (September 9). All these three days unite companies, individuals, policy makers and thought leaders. They are days which see activations and announcements that help continue to propel the zero-emission movement worldwide. In fact, these three days should be a focus on every day of the year, and anywhere you are. And in a time of rapid and adverse climate change, it's the last call for a healthier planet – it's the only one we have.

The UN Environment Programme (UNEP) has stated: “The planet doesn’t argue. It doesn’t negotiate. It sends signals — rising seas, raging wildfires, heatwaves, melting glaciers. We said 1.5 degrees Celsius was the limit. We are crossing it. For decades, the world has heard the climate story — warnings, targets, distant deadlines. Too often, the response has been clouded by noise: delay, distraction, denial.”

“But listen closer now. Beneath the noise, another signal is rising. Solar panels stretch across rooftops. Wind turbines line the horizon. Cities are being redesigned for people. Forests are being replanted. Positive tipping points are taking root in every corner of the planet. World Environment Day 2026 focuses on climate change — on the urgent signals the Earth is sending and the signals we choose to send back. UNEP’s global campaign calls on all of us to step in, to move further, to steer a world already in motion. The question is no longer if change comes, but how we guide it and how fast it happens.”

World Environment Day 2026 is also reason to take a close look at how the EV industry is faring in India, which is one of the fastest-growing automotive markets globally and doing its bit in the drive towards a healthier planet.

OVER 9 MILLION ELECTRIC VEHICLES SOLD IN INDIA BETWEEN CY2017 AND MID-2026

EV share in India Auto Inc’s sales grew from 0.35% in CY2017 to 9.33% in the first 5 months of CY2026

A deep dive into India Auto Inc’s overall automobile sales and share of EVs over a 10-year period from CY2017, when the EV industry was a fledgling one, reveals that the zero-emission vehicle penetration level has risen from a minuscule 0.35% of the 24.29 million vehicles sold in CY2017 to 9.33% in the first five months of CY2026 (see decadal data table above).

Cumulative sales in the first five years (CY2017 to CY2021) at 853,896 units were just 0.73% of the 115 million vehicles (11,54,01,551) sold in the country. CY2020 and CY2021, which were Covid-impacted years, were also a sales dampener for the overall industry, EVs included.

The green shoots of EV growth sprouted strongly in CY2022 when retail sales crossed the one-million-units milestone for the first time. The 1.05 million units were a handsome 210% YoY increase (CY2021: 341,167 units) and saw the EV penetration level hit 2 percent. Since then, it’s been a strong drive for the domestic EV industry led by the volume electric 2-wheeler industry and the e-3-wheeler which, at over 60% penetration level, continues to command the highest level of transition from ICE to EVs.

India EV Inc grew rapidly between CY2023 and CY2025 and bids fair to achieve even better numbers in CY2026. While CY2023 saw the 1.5 million sales mark being surpassed with an EV penetration level of 6%, CY2024 did even better to hit the 2 million milestone with 28% YoY growth and an EV share of nearly 7.5 percent. CY2025 delivered 16% growth with 2.35 million EVs being delivered to customers and an EV penetration level of 8.65 percent. This year promises to be even better for EV makers, what with the three-month-old West Asia crisis having already resulted in four price hikes for petrol and diesel, and two for CNG. Between January 1 and June 4, 2026, 1.28 million EVs have been retailed marking strong 40% growth and an EV penetration level of 9.33% versus the 13.79 million vehicles (across all powertrains) sold in India.

Electric Two-Wheelers

CY2017: 1,516 units – 0.008% share of 18.81 million 2Ws

CY2026 YTD: 801,277 units – 8% share of 9.79 million 2Ws

Share of 9.16 million EVs sold in India: 56%

From 1,516 units a decade ago and a 0.008% share of India 2W Inc’s sales of 18.81 million motorcycles, scooters and mopeds, the electric 2W segment has blossomed into the volume growth driver of the EV industry.

As the data table above reveals, demand for e-mobility on two wheels crossed the 150,000-units mark for the first time in CY2021 (164,195 units) and then jumped 303% the next year to 661,633 units. The million milestone was surpassed two years later in CY2024 (1.21 million units), only to be bettered in CY2025 (1.34 million units) with its share of auto sales doubling to 6 percent. Now, in the current year’s first five months, with 801,277 units sold and 49% YoY growth, the e-2W share of India Auto Inc sales stands at 8.17 percent. What’s more, having already achieved 60% of CY2025’s record sale and currently averaging monthly sales of over 160,000 units, the e-2W industry could even be headed towards 2 million units this year. What will also help is the tailwinds provided by rising prices of petrol and CNG in the wake of the West Asia crude oil crisis. For the latest update of e-2W sales this year, CLICK HERE.

Electric Three-Wheelers

CY2017: 83,338 units – 13.69% share of 608,493 three-wheelers

CY2026 YTD: 354,195 units – 58.82% share of 602,119 three-wheelers

Share of 9.16 million EVs sold in India: 37%

The real success story of the Indian EV industry lies in the three-wheeler segment. This is where the highest level of ICE-to-EV transition is seen. From a near-14% penetration level – 83,338 units from 608,493 units across all powertrains – the e-3W category currently has a 59% penetration level, way higher than the e-2W category.

Across both passenger and cargo transport operations, the incentive to buy an electric three-wheeler remains strong, particularly in view of the lower cost of ownership (compared to IC engine, CNG and LPG options). While there is a high percentage of single owners, particularly for passenger transport, there is growing demand for electric 3W cargo models for last=mile mobility operations in urban India.

As the decadal retail sales data reveals, annual sales crossed the half-a-million mark in CY2023, rose by 19% YoY to 695,265 units in CY2024 and then went on to surpass the 800,000 milestone in CY2025. In CY2026’s first five months and 4 days, the 354,195 units give this segment a 59% penetration level in the 602,119 three-wheelers sold across India. And, the icing on the EV cake is that the Indian electric 3W industry has been the No. 1 global market for three years running, having beaten China first in CY2023. For the latest update of e-3W sales this year, CLICK HERE.

Electric Passenger Vehicles

CY2017: 1,266 units – 0.032% share of 3.87 million cars, SUVs and MPVs

CY2026 YTD: 120,702 units – 4.30% share of 2.80 million passenger vehicles

Share of 9.16 million EVs sold in India: 6%

Considerably smaller volume-wise than the electric 2- and 3-wheeler segments, the electric passenger vehicle (e-PV) segment has come into its own in the past couple of years as a result of a growing number of models, improving charging infrastructure and also the innovative Battery as a Service (BaaS) marketing feature which reduces the upfront cost of an EV. In CY2017, a fledgling e-PV industry with just a few models sold 1,266 units which gave it a less than 1% share of the 3.87 million hatchbacks, sedans, SUVs and MPVs sold that year. A decade later, after the first five months of CY2026, the 120,702 units with 73% YoY growth give the segment a 4.30% penetration level of the 2.80 million PVs sold in the current year to date.

While 153,162 units or 27% of the total 576,168 e-PVs sold in the past 10 years took seven years from CY2017 to CY2023, the CY2024 to mid-CY2026 period delivered sales of 422,306 units or 73% of the decadal retails. While CY2025 saw record sales of 196,090 units, the first five months of CY2026 (120,702 units) have already achieved 62% of last year’s record sales and bid fair to surpass the 300,000 annual sales milestone for the first time. For the latest update of e-3W sales this year, CLICK HERE

Electric Commercial Vehicles

CY2017: 932 units – 0.099% share of 938,998 CVs

CY2026 YTD: 12,017 units – 2% share of 539,319 CVs
Share of 9.16 million EVs sold in India: 0.56%

Lowest in terms of volumes but the highest in sticker price, the electric commercial vehicle segment has registered retail sales of 51,828 units from CY2017 till June 4, 2026. As the decadal data table depicts, annual sales crossed the 10,000 mark for the first time in CY2024, rising to 16,664 in CY025 and are currently placed at 12,017 units in the first five months and 4 days of CY2026.

Zero-emission light goods carriers account for the bulk of sales and reflect the surge in demand coming from last-mile mobility providers, particularly from urban India in the past two years. Demand for electric buses, which are mainly bought by state transport undertakings for inter-city operations and local municipal corporations for city transport, is growing. Meanwhile, heavy goods carriers, typically used for infrastructure operations across the country, are also seeing an uptick in sales.

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Exclusive: India is World’s Largest Electric 3w Market for Third Year in a Row

World Environment Day Special: 9.1 Million EVs Sold In India In The Past 10 Years

Ajit Dalvi — Fri, 05 Jun 2026 17:03:40

OVER 9 MILLION ELECTRIC VEHICLES SOLD IN INDIA BETWEEN CY2017 AND MID-2026

EV share in India Auto Inc’s sales grew from 0.35% in CY2017 to 9.33% in the first 5 months of CY2026

Electric Two-Wheelers

CY2017: 1,516 units – 0.008% share of 18.81 million 2Ws

CY2026 YTD: 801,277 units – 8% share of 9.79 million 2Ws

Share of 9.16 million EVs sold in India: 56%

Electric Three-Wheelers

CY2017: 83,338 units – 13.69% share of 608,493 three-wheelers

CY2026 YTD: 354,195 units – 58.82% share of 602,119 three-wheelers

Share of 9.16 million EVs sold in India: 37%

Electric Passenger Vehicles

CY2017: 1,266 units – 0.032% share of 3.87 million cars, SUVs and MPVs

CY2026 YTD: 120,702 units – 4.30% share of 2.80 million passenger vehicles

Share of 9.16 million EVs sold in India: 6%

Electric Commercial Vehicles

CY2017: 932 units – 0.099% share of 938,998 CVs

CY2026 YTD: 12,017 units – 2% share of 539,319 CVs
Share of 9.16 million EVs sold in India: 0.56%

ALSO READ: Global Electric Car Market Poised to Grow to 23 Million in 2026 Amidst Energy Crisis: IEA Report

Exclusive: India is World’s Largest Electric 3w Market for Third Year in a Row

Bajaj Freedom 125 Sales Fall Amidst CNG Price Rise, Maharashtra and Gujarat Top Buyers

Ajit Dalvi — Fri, 05 Jun 2026 09:30:56

In the wake of the ongoing West Asia crisis, which has led to multiple hikes in the prices of petrol, diesel and CNG, and also resulted in growing demand for electric vehicles, one of the collateral impacts has been on the CNG-powered Bajaj Freedom 125. Retail demand for the world’s first CNG-powered motorcycle has fallen to a new monthly low of 1,210 units in May 2026, as per the Vahan portal. The Bajaj Freedom 125’s highest monthly sales came in the festive months of October 2025 (11,079 units) and November 2025 (12,167 units), just a few months after launch.

When Bajaj Auto launched the world’s first CNG motorcycle on July 5, 2024, it was felt that, given the uniqueness of the product as well as the wallet-friendly fuel compared to costlier petrol, sales would take off in India. However, the market reality is somewhat different two years down the line.

Along with the smaller CNG filling network compared to petrol or diesel, among the reasons cited for the slower acceptance of the innovation-led CNG motorcycle is the considerably narrowed price gap between CNG and petrol. In July 2024, when the Freedom 125 was launched, the price differential was Rs 32, with CNG costing Rs 75 per kg and petrol priced at around Rs 107 a litre. Twenty-three months later, in May 2026, the price gap between the two fuels had reduced to Rs 25 – CNG at Rs 86 per kg and petrol at Rs 111.21 a litre (in Mumbai).

This is something Rakesh Sharma, the joint managing director of Bajaj Auto, commented on during a media call in early May this year, before the multiple fuel hikes in petrol, diesel and CNG happened, when discussing the company’s Q4 FY2026 earnings.

He said: “For the last many months now, what has happened is that the arbitrage between CNG and petrol has changed to some extent. The gap has reduced because petrol prices have been sort of fastened and CNG prices in some key states have increased,” he said. According to Sharma, lower savings have made customers more cautious about shifting to a new fuel technology. Buyers also have to account for a new refuelling behaviour, including using different filling stations from the ones they are familiar with.

“That has been one of the key reasons for the slowdown, or slow adoption, of the CNG bike,” Sharma added. However, he pointed out that, at the product level, acceptance remains strong. “We are persisting with it... it is there in the market. At a product level, the acceptance is very good.” The company will now watch how the fuel-price equation evolves. Sharma said CNG availability, petrol prices and the savings gap will determine the future prospects of the eco-friendly Bajaj Freedom 125.

Retail sales of the Bajaj Freedom 125 crossed the 50,000 mark in mid-March 2025, just eight months after launch. However, demand has slackened since then following a narrowing of the petrol-CNG price gap.

Pitched as an Affordable, Greener Alternative to Petrol 2WS

The ground-up-developed Bajaj Freedom 125 is a motorcycle that is capable of running on both CNG and petrol and is pitched as an alternative to similar-category petrol-engined commuter motorcycles, which rely on being fuelled by expensive petrol. It is sold in three variants, starting with the NG04 Drum (Rs 91,566), NG04 Drum LED (Rs 104,117) and NG04 Disc LED (Rs 109,852, ex-showroom Mumbai).

The Bajaj Freedom 125 is powered by a new, air-cooled 125cc, single-cylinder motor which develops 9.5 hp and 9.7 Nm of torque, mated to a five-speed gearbox. Bajaj Auto claims the bike has a top speed of 90.5kph while running on CNG and, when switched to petrol power, slightly higher at 93.4kph.

Bajaj Auto claims the Freedom 125 lowers operating costs by up to 50% when compared to similar ICE motorcycles. The CNG tank provides a range of over 200 kilometres on just 2kg of CNG. Additionally, the bike’s 2-litre petrol tank acts as a range extender, offering over 130km of range in the event of the CNG tank emptying out.

This dual-fuel capability gives the rider a combined range of 330km. The Freedom 125, as per Autocar India tests, mileage of 94km/kg in the city and 126km/kg on the highway. Meanwhile, the fuel efficiency when running on petrol was predictably a lot lower – 53.4kpl in the city and 62.37kpl on the highway. On the emissions front, compared to petrol-engined bikes, the Freedom 125 emits 26.7% less CO2, 85% lower NMHCs (non-methane hydrocarbons) and 43% less NOx (nitrogen oxides).

High on safety, the Freedom 125 has successfully passed 11 rigorous safety tests, including impact tests, as well as a truck-run-over test. Earlier this year, the Bajaj Freedom 125 bagged the Autocar Bike of the Year 2025 award, impressing the jury with its innovation, value, usability and cost-effectiveness.

Lower savings vis-à-vis petrol have made bikers more cautious about shifting to the new CNG fuel technology.

Maharashtra and Gujarat Top Buyers of Bajaj Freedom 125

The Freedom 125 was initially launched in only two states – Maharashtra and Gujarat – which had, and continue to have, a strong CNG filling infrastructure. Since then, Bajaj Auto has considerably expanded the Freedom 125’s availability across India, including Tier 2 and Tier 3 towns where the CNG filling infrastructure is gradually growing. As a result, demand has been higher in states where the CNG filling station density is high. It is understood that there are around 7,000 CNG filling stations across India, billed to more than double to over 13,000 stations over the next couple of years and around 17,000 by 2030.

The Freedom 125 was quick to achieve the 50,000-unit retail sales milestone, news which Autocar Professional broke on March 18, 2025, barely eight months after Bajaj launched the green machine as an affordable, greener alternative to petrol-engined two-wheelers. At the time, Maharashtra and Gujarat were the top buyers, as they still are (see state- and UT-wise retail sales table below).

Of the 87,998 Bajaj Freedom 125s sold across India to date (June 4, 2026), Maharashtra, with 14,874 units and a 17% share, is the No. 1 state where the CNG-powered motorcycle has been bought. Gujarat, with 14,818 units, is just 56 units behind Maharashtra and has a 16.83% share of retail sales. Together, these two states, where the eco-friendly motorcycle was first launched and which have a strong CNG infrastructure in place, have a combined 34% share.

Madhya Pradesh (9,041 units, 10% share), Uttar Pradesh (8,760 units, 10% share), Rajasthan (8,134 units, 9% share), Delhi (6,039 units, 7% share), and Karnataka (5,331 units, 6% share) are ranked third, fourth, fifth, sixth and seventh in Freedom 125 ownership, respectively. They are followed by Haryana (4,271 units, 5% share), Bihar (4,057 units, 4.61% share), and Tamil Nadu (3,678 units, 4% share). These top 10 states together account for 79,003 units, or 90% of all the Freedom 125s sold in India to date.

Demand for the Freedom 125 has been higher in states/UTs where the CNG filling station density is high.

Like its petrol-engined motorcycle brethren as well as scooters, the Bajaj Freedom 125 faces a challenge in the form of electric two-wheelers which have logged strong 63% YoY growth in May 2026, a month that saw four price hikes in petrol and two in CNG. What’s more, on June 3, two days before World Environment Day 2026, which is today, Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, unveiled its first Flex Fuel vehicles , the iconic Splendor+ (Rs 82,810) and HF Deluxe (Rs 72,792, ex-showroom Delhi), which are over Rs 25,000 cheaper than the Freedom 125 and compatible with ethanol-blended fuels ranging from E20 to E85.

Global Electric Car Market Poised to Grow to 23 Million in 2026 Amidst Energy Crisis: IEA Report

Ajit Dalvi — Fri, 22 May 2026 12:24:07

Global demand for electric passenger vehicles (e-PVs) is slated to grow by 15% this year to 23 million units in CY2026, representing 28% of total e-PV sales. A fair portion of this demand will be driven by the ongoing energy crisis caused by continuing conflict in the Middle East, which has brought reliance on oil imports into sharp focus in many countries, including India, which imports over 80% of its crude oil requirements.

In CY2025, electric car sales grew by 20% globally to exceed 20 million units, meaning one-quarter of all new e-PVs sold were electric. In CY2025, around 2,500 passenger vehicle models were available worldwide. Nearly 1,000 of these were electric, about 40% of the total, up from about 35% in CY2024. Counting both battery electric and plug-in hybrid electric models, the number of electric models has more than doubled in the past five years. More than 100 countries recorded electric car sales growth last year, and in one-third of these, they represented at least 10% of new car sales. Chinese automakers supplied 60% of global electric car sales in CY2025, while European and North American automakers were each responsible for about 15% of global sales. In CY2026, as a result of the ongoing West Asia crisis, electric cars are poised to make up a greater share of total global car sales.

According to the Global EV Outlook 2026 report released by the International Energy Agency (IEA), Europe is poised for the largest growth among major markets, with sales projected to increase by around 20% in 2026, such that one in three cars sold is electric. In China, electric car sales are set to grow across CY2026, albeit at a slower rate than in previous years, to reach almost 60% of total car sales. Sales across Asia-Pacific countries other than China are expected to grow by over 50%, while sales in Latin America are projected to rise by 45 percent. The wider economic impacts of the conflict in the Middle East might temper overall car sales. In many regions, however, there is upside potential to the 2026 EV forecast, depending, in part, on how, when and which policies are enacted amid the current energy crisis.

As the IEA report points out, the current high oil price environment is drawing consumer attention to the economic benefits of driving EVs. Electric cars generally have lower running costs than internal combustion engine (ICE) vehicles, mainly due to their higher efficiency. The recent rise in oil prices resulting from the conflict in the Middle East has further increased the cost savings associated with driving an EV. For corporate fleets that travel long distances, the running cost savings can be several

times larger than for the general consumer. Preliminary signs suggest EV sales are increasing in countries with supply concerns or where fuel price increases have been particularly steep. It would be fair to surmise that due to rising petrol, diesel and CNG prices, a growing number of ICE vehicle users will finally make an EV purchase decision this year.

Retail sales crossed the 24,000 mark for two months in a row in March and April. Cumulative January-April (86,773 units) are already 44% of the record 195,179 e-PVs sold in India in CY2025.

Electric Car and SUV Sales in India Jump 65% in January-April to 86,773 Units
As per the latest IEA report, “Electric car sales broke records in many markets during the first quarter of 2026. Global sales, at around 3.9 million, were 8% lower than over the same period last year, primarily because of lower sales in China and the United States following key policy changes. However, this overall decline masks strong sales growth in many countries: in Europe, sales were up close to 30% year-on-year; countries in Asia Pacific excluding China saw year-on-year sales growth of 80%, and sales across Latin America were up by 75%. In March 2026, around 30 countries saw record-breaking monthly sales, and a further 60 countries recorded year-on-year sales growth. Preliminary April data shows that monthly electric car sales in China grew to a record high of over 60% of total car sales, even if year-to-date electric car sales remained lower than in 2025.”

In India, demand for zero-emission passenger vehicles (hatchbacks, sedans, SUVs and MPVs) has witnessed strong growth in the first four months of this year. Between January and April 2026, the 17 electric car and SUV manufacturers have delivered 86,773 units to customers, which marks robust 65% YoY growth (January-April 2025: 52,743 units). This total is already 44% of the record 195,179 e-PVs sold in India in CY2025. Given the same growth trajectory, e-PV sales in India this year should easily cross the 250,000-unit mark. If the pace of demand rises even more due to additional price hikes in petrol, diesel and CNG through the year, e-PV sales could even cross the 300,000 milestone for the first time.

ALSO READ: Best-ever April for Indian EV industry: 239,000 units

BEV sales in Europe jump 30% to 1.88 million in CY2025, hybrids up 14%

EV sales in India hit record 2.27 million in CY2025

Global Electric Car Market Poised to Grow to 23 Million in 2026 Amidst Energy Crisis: IEA Report

Ajit Dalvi — Fri, 22 May 2026 12:24:07

Retail sales crossed the 24,000 mark for two months in a row in March and April. Cumulative January-April (86,773 units) are already 44% of the record 195,179 e-PVs sold in India in CY2025.

ALSO READ: Best-ever April for Indian EV industry: 239,000 units

BEV sales in Europe jump 30% to 1.88 million in CY2025, hybrids up 14%

EV sales in India hit record 2.27 million in CY2025

Explainer: The New Shop Floor Reality: Decoding the 2025 Labour Codes for the Auto Industry

Shahkar Abidi — Fri, 08 May 2026 12:15:53

The landscape of Indian industrial relations has undergone its most significant overhaul in decades. On November 21, 2025, the Union Government officially notified four major Labour Codes: the Code on Wages, the Occupational Safety, Health and Working Conditions (OSH) Code, the Social Security Code, and the Industrial Relations (IR) Code.

While corporate circles have largely welcomed these changes as essential "reforms," trade unions view them as a fundamental shift in how the State mediates the relationship between capital and labour. To help our readers in the automotive sector, from Tier-1 suppliers to assembly plant managers, understand what has changed, Autocar Professional's Shahkar Abidi spoke with Advocate Maitreyi Krishnan of the All India Central Council of Trade Unions (AICCTU). Krishnan warns that these codes represent an "abdication by the State" of its responsibility to protect the vulnerable

According to Krishnan, the new framework essentially creates a "dictatorship of the private employer," pushing millions of workers outside the protection of the law. Here is a breakdown of the "Earlier vs. Now" in simple terms:

1. Hiring, Firing, and Plant Closures (The IR Code)
For mid-sized automotive units, the rules regarding business agility versus job security have shifted dramatically.

Earlier: Establishments with 100 or more workers needed prior government permission to lay off staff or close down operations.

Now: That limit has been tripled to 300 workers.

Simplified Context: If you run a component plant with 250 employees, you can now retrench (cut jobs) or shut down without any prior government approval or public scrutiny.

2. Employee Handbooks/Service Rules (Standing Orders)
These are the rules that govern daily conduct, shift timings, and disciplinary actions on the shop floor.

Earlier: Any unit with 100 or more workers had to have "Certified Standing Orders"—rules vetted by authorities to ensure they were fair to workers.

Now: Only establishments with 300 or more workers are required to have these certified rules.

Krishnan’s Take: For units with under 300 staff, service conditions are now left entirely to "employer discretion," which can lead to arbitrary or discriminatory practices.

3. The Contract Labour System
The auto industry relies heavily on contract staffing for non-core tasks. The new codes change the definition of what is "allowable."

Earlier: The law applied to units with 20 or more contract workers, and use of contract labor in "core" production activities was strictly regulated.

Now: The threshold for the law to apply is raised to 50 workers. Furthermore, the definition of "core activity" now specifically excludes sanitation, loading/unloading, canteen services, and maintenance.

Simplified Context: These essential factory tasks are now legally "non-core," which Krishnan argues institutionalizes an exploitative system where marginalized workers are denied the benefits of permanent employment.

4. Women on the Shop Floor
While the codes are marketed as progressive, Krishnan highlights concerns regarding wage parity and safety.

Earlier: Night shifts for women were generally prohibited under the Factories Act to ensure safety.

Now: Women can work night shifts, provided they "consent".

The Concern: Krishnan argues that in a workplace with a high power imbalance, this "consent" is often illusory and exposes women to unsafe conditions. Additionally, a new, narrower definition of "wages" (excluding various allowances) may lead to lower maternity benefit payouts and "indirect" pay discrimination.

5. Trade Union Autonomy and the "Deregistration Weapon"
In large-scale automotive manufacturing, the relationship between management and registered trade unions is a cornerstone of the shop floor. The new code changes how these unions are regulated.

Earlier: Under the Trade Unions Act, 1926, union office-bearers enjoyed statutory immunity from civil and criminal prosecution for actions taken to achieve legitimate union goals. While registration could be cancelled, the grounds were relatively narrow.

Now: The Industrial Relations Code gives the Registrar of Trade Unions significantly broader discretion to cancel a union's registration based simply on "information received" regarding any violation of the Code.

The Impact for Auto Plants: Once a union’s registration is cancelled, its members lose all legal immunity from prosecution. Krishnan warns that this creates a "climate of fear," where the threat of deregistration can be used to intimidate workers and prevent them from challenging management decisions.

6. The "Wage Redefinition" and Social Security Payouts
The way "wages" are calculated has been completely overhauled, affecting everything from maternity leave to provident fund liabilities.

Earlier: Laws like the Equal Remuneration Act and the Maternity Benefit Act used a broader understanding of what constituted a worker's pay to ensure they received fair compensation.

Now: The Code on Wages redefines "wages" to exclude various allowances. This allows employers to "split" a worker's salary into many different heads to keep the official "wage" low.

The "Hidden" Change: Because benefits like maternity payouts are calculated based on this narrow definition of "wages," women workers in the industry will likely see a reduction in their actual cash benefits. Krishnan argues this effectively legitimises indirect wage discrimination, as employers can structure pay scales to avoid their full social security liabilities.

Explainer: The New Shop Floor Reality: Decoding the 2025 Labour Codes for the Auto Industry

Shahkar Abidi — Fri, 08 May 2026 12:15:53

TVS, Bajaj, Ather and Hero Vida Open FY2027 with Strong E-2W sales, Ola Sells 12,000 Units

Ajit Dalvi — Fri, 01 May 2026 13:46:55

The Indian electric 2-wheeler industry, which registered record retail sales of 1.40 million units in FY2026, has opened FY2027 on a strong note. April 2026 saw a total of 148,677 units delivered to e-2W buyers, up 61% YoY (April 2025: 92,536 units) and in line with the strong growth displayed since the start of CY2026. April sales are the second highest monthly numbers in the current year to date, after March 2026 (192,343 units, up 46% YoY).

Combined sales of the Top 4 OEMs – TVS, Bajaj Auto, Ather Energy and Hero Vida – at 112,798 units give them a 76% share of April’s retails of 148,677 units, which is the second highest monthly score.

Market leader TVS Motor Co, which sold a record 341,983 e-scooters comprising the iQube and Orbiter in FY2026, sold 37,661 units in April 2026. This is a handsome 96% YoY increase (April 2025: 19,176 units) and gives the company a monthly market share of 25% at the start of FY2027. TVS’ April sales are its second-highest monthly numbers, and come just one month after the company hit its highest scale in March 2026 (49,719 units). What has helped drive demand is the strategic move to offer the Battery-As-A-Service (BaaS) across its EV portfolio. The BaaS model lowers the upfront cost, while offering customers long-term battery assurance and peace of mind. While the flagship iQube remains the model with the highest share of sales, the Orbiter is witnessing growing demand. Two months ago, TVS launched a new edition in the form of the Orbiter V1 (1.8 kWh) at Rs 84,500 (ex-showroom Delhi, inclusive of PM e-Drive) and Rs 49,999 (with BaaS).

Bajaj Auto delivered 32,883 Chetak e-scooters last month, up 72% YoY (April 2025: 19,162 units), which gives it a 22% e-2W market share for April 2026. This is the third highest monthly score for the Pune-based major after March 2026 (46,544 units) which was only other month when the company had retailed over 40,000 units and March 2025 (35,215 units).

Third-ranked Ather Energy is still behind Bajaj Auto in numbers but eyeing the No. 2 position. The EV start-up, which has surpassed 600,000 cumulative retail sales recently, sold 27,024 units in April 2026. This gives it an 18% market share and marks robust 103% YoY growth (April 2025: 13,332 units) and is the company’s second-highest monthly total. This is the sixth instance of the smart e-scooter start-up clocking 20,000-plus sales with the highest coming in March 2026 (36,125 units).

Hero Vida, the EV arm of Hero MotoCorp, is now well entrenched as the No. 4 e-2W OEM. In April 2026, the company sold 15,230 units, up 148% YoY (April 2025: 6,150 units). The Vida brand, which has crossed cumulative sales of 200,000 units including 100,000 in 8 months, had an e-2W market share of 10% in April.

Ola Electric is back to being the No. 5 e-2W OEM in monthly sales for the second month in a row. Ola, which had slipped to No. 6 position in February 2026 and below Greaves Electric Mobility for the first time, sold 12,166 units in April 2026, which is 2,037 more e-2Ws than in March (10,117 units). This, however, is a 39% YoY decline (April 2025: 19,824 units) and its best monthly performance in the past six months after October 2025 (16,064 units). An energised Ola looks to be back in the ‘game’ with retail sales increasing month on month.

Greaves Electric Mobility (6,884 units, up 72% YoY) and Ampere Vehicles are back at No. 6 position they had occupied before February. In April 2026, GEM had a 5% e-2W market share. GEM’s previous best monthly sales came in October 2025 (7,635 units) and Ampere (as a single entity) in November 2022 (12,260 units). On April 24, GEM launched the new Ampere Magnus Neo, a lighter and redesigned variant which is aimed at urban commuter buyers.

Bengaluru-based River Mobility, which is witnessing growing demand for its sole product – the River Indie – delivered 3,198 units, up 302% YoY (April 2025: 796 units). The company had clocked its highest monthly sales in March 2026 (4,200 units) and has sold over 30,000 units till end-April 2026.

EV startup Bgauss Auto, which began sales in August 2022, sold 3,065 units last month, up 133% YoY (April 2025: 1,313 units).

Simple Energy, which is witnessing a good run of demand for its e-scooters, sold 1,188 units last month, up 338% YoY (April 2025: 271 units). The company, which has a two-model portfolio in the form of the Simple One (4.5 kWh, 5 kWh) and OneS has recently announced the Ultra claimed to deliver a 400km travel range. In January this year, the company introduced its Gen 2 line-up which are updated versions of the existing models. The upcoming e-scooter, understood to be called the Simple Arrive, is a family-centric model which could rival the TVS iQube, Ather Rizta and Bajaj Chetak.

Haryana-based Bounce Electric enters the Top 10 listing with 1,077 units, up 1583% YoY on a low base of just 64 units in April 2026.

Of the 10 companies vying for a slice of India’s booming e-2W market, combined sales of these Top 10 OEMs at 140,376 units accounted for 94% of the 148,677 units sold in April 2026, leaving the remaining six percent to be fought over by the other 150 players. The Top 5 OEMs – TVS, Bajaj Auto, Ather Energy, Hero Vida and Ola Electric – though maintained their stranglehold over the segment. Their combined sales of 124,964 units give them an 84% share of April’s retail sales.

Meanwhile, the three Japanese OEMs have together sold 753 e-scooters in April 2026. While Honda sold 377 units, Suzuki delivered 273 units of its e-Access and Yamaha 103 EC-06 e-scooters.

ALSO READ:
Ather Energy crosses 600,000 sales, 50% sold in the last 16 months

Tata EV Sales Jump 77% in April, Mahindra Outsells JSW Again, Maruti and JSW deliver 1,200 EVs Each

Ajit Dalvi — Fri, 01 May 2026 13:31:59

The India electric passenger vehicle (e-PV) industry, which closed FY2026 with record retail sales of 200,946 units and handsome 85% YoY growth, has carried over the same strong momentum into the first month of FY2027. April 2026 saw 17 manufacturers of zero-emission cars, SUVs and MPVs deliver 23,163 units to customers, up 73% YoY (April 2025: 13,409 units). This is the second highest monthly retails after March 2026 (23,749 units).

April 2026 retail sales of 23,163 electric cars and SUV is the second highest monthly total for the industry after March 2026 (23,749 units).

Tata Motors, the longstanding e-PV market leader, posted retail sales of 8,506 units in April 2026, up 77% YoY (April 2025: 4,816 units), which gives it a market share of 37% for last month, up from 36% a year ago. This is Tata Motors second highest monthly e-PV sales after March 2026 (8,684 units). While the Harrier EV has helped revive demand, the Nexon EV, Tiago EV and Punch EV continue to have their share of buyers. The Curvv coupe-SUV, however, is yet to achieve proper sales traction for Tata Motors, whose EV portfolio also has the Tigor (XPres-T). The company, which clocked record retails of 79,271 EVs in FY2026, has seen its e-PV market share drop to 40% in FY2026 from 53% in FY2025. That’s mainly due to the rapid advance of JSW MG Motor India and Mahindra & Mahindra, even as three new players – Maruti Suzuki India, Vinfast and Tesla – entered this segment last fiscal.

The big news from April 2026 is Mahindra & Mahindra, which has been a consistent No. 3, outselling JSW MG Motor India for the second month in a row. April saw M&M achieve customer deliveries of 5,394 electric SUVs, up 63% on the year-ago sales (April 2025: 3,301 units), which gives it a market share of 24 percent. In March 2026, M&M (5,651 units) had sold more EVs than JSW MG Motor (5,550 units) for the first time in a single month. While the two new Born Electric SUVs – BE 6 and XEV 9e – launched in early 2025 have been the instruments of the rapid growth, the November 2025 launch of the XEV 9S, M&M’s first three-row, born-electric SUV gave it added firepower in the segment. The XEV 9S, which has battery options spanning 59 kWh, 70 kWh and 79 kWh, slots above the stylish XEV 9e and the radical BE 6 SUVs, both of which are two-row EVs.

JSW MG Motor India, now ranked the No. 3 e-PV OEM, sold 4,978 units last month, up 32% YoY (April 2025: 3,776 units). This gives it a 22% e-PV market share with the game-changing Windsor EV and the BaaS option being the growth accelerator. JS MG Motor’s portfolio also includes the M9 MPV, Cyberster roadster, ZS EV and Comet EV.

Vinfast India, the local arm of Vietnamese EV major Vinfast, is ranked fourth amongst the 17 e-PV OEMs with 1,231 units which give it a 5% e-PV share. This is the first time that the company has crossed 1,000-units in a month since it began deliveries of the locally assembled VF6 and VF7 e-SUVs in October 2025, followed more recently by the VF MPV7 which is claimed to deliver 517km range on a full charge. Between October 2025 and April 2026, Vinfast India has clocked total sales of over 3,500 EVs.

Maruti Suzuki India too has surpassed deliveries of 1,000 units for the first time in a month. The company sold 1,222 e-Vitara SUVs in April which gives it a market share of 5 percent. It is understood that due to production constraints, the company has allocated between 2,000-2,500 units for the domestic with far more for exports. In fact, the e-Vitara (25,549 units) was the fifth most-exported SUV in FY2026 after the Maruti Fronx (90,186 units), Jimny (72,209 units), Nissan Magnite (56,704 units) and the Toyota Hyryder (38,854 units).

Sixth-ranked Hyundai Motor India, which is experiencing the heat of the intense competition in the e-SUV market, sold 512 EVs, down 31% YoY (April 2025: 747 units). The company, whose e-PV share is down to 2% from 6% a year ago, continues to see tepid demand for its main product – the Creta EV – and the Ioniq 5.

BYD India, the local division of China’s BYD, sold 467 units, up 17% YoY (April 2025: 398 units). From May 1, the company will increase prices across its EV portfolio by Rs 50,000 to Rs 100,000 covering the Atto 3 SUV, e-Max 7 MPV, Seal sedan and Sealion 7 SUV. Current ex-showroom prices start from Rs 24.99 lakh for the entry level Atto 3 through to Rs 54.90 lakh for the top-spec Sealion 7.

Up next is Kia India with 341 units, up 903% on a low year-ago base of just 34 units. Following the launch of the mass-market Carens Clavis EV MPV, which joined the far more expensive EV6 and EV9 imported as CBUs, Kia has seen its monthly numbers improve. However, after having posted strong sales last August (465 units), September (530 units), October (681 units), November (480 units), demand has dropped in CY2026: January (321 units), February (304 units), March (476 units) and now in April (341 units).

BMW India led the luxury e-PV OEMs who sold 487 EVs to register a strong 70% YoY increase.

Luxury Carmakers Sell 487 Electric Vehicles to Register 70% Growth

In tandem with the mass-market e-PV market, demand for luxury cars, SUVs and sedans also continues to register good growth. Over the past four fiscals, demand for luxury cars, SUVs and sedans has risen by 450% from 986 units in FY2023 to 5,450 units in FY2026. FY2027 looks set to drive in the same growth lane. In April 2026, total retail sales of the eight OEMs in this sub-segment were 487 units, up 70% YoY (April 2025: 286 units).

BMW India, which topped this category in FY2026 with a record 3,566 e-PVs, and is ranked No. 9 amongst the 17 e-PV OEMs in April, maintained its No. 1 status with 296 units, up 106% YoY (April 2025: 144 units), which gives it a 61% share for last month.

Mercedes-Benz India, with 104 EVs sold last month, witnessed a 20% YoY sales increase (April 2025: 87 units), which gives it a 21% market share in this category. Expect monthly sales to further improve soon. The company’s upcoming CLA electric sedan has already received 400-plus bookings following the announcement of an indicative price of around Rs 60 lakh, with a majority of buyers entering the luxury car segment for the first time. Mercedes-Benz is positioning the CLA not as a price disruptor but as a technology-led model. Built on a new dedicated EV architecture with an 800-volt system and the brand’s latest MB.OS operating system, the model serves as a foundation for a new generation of software-defined vehicles in the company’s global portfolio.

Tesla has gone ahead of Volvo India to be ranked the No. 3 luxury e-PV OEM in April with 43 units. The company, whose first product has been the Model Y e-SUV, recently launched the Model Y L. Priced at Rs 61.99 lakh, the Model Y L is the long-wheelbase, six-seat version of Tesla’s best-selling global SUV and gives the American EV maker a more nuanced position in India’s premium EV market, sitting above value-led Chinese rivals like BYD and below more chauffeur-oriented luxury EVs such as the MG M9.

Volvo India, the consistent No. 3 in the luxury EV makers list, saw a decline in demand. The Swedish carmaker sold 41 zero-emission cars and SUVs, down 7% on the 44 units in April 2025.

Both German sportscar maker Porsche and Audi sold a single EV each last month, while JLR India and Rolls-Royce did not sell any. In terms of EV market penetration, the eight luxury EV OEMs had a 2.10% share in April 2026 compared to 2.13% in April 2025.

Tata EV Sales Jump 77% in April, Mahindra Outsells JSW Again, Maruti and JSW deliver 1,200 EVs Each

Ajit Dalvi — Fri, 01 May 2026 13:31:59

April 2026 retail sales of 23,163 electric cars and SUV is the second highest monthly total for the industry after March 2026 (23,749 units).

BMW India led the luxury e-PV OEMs who sold 487 EVs to register a strong 70% YoY increase.

Luxury Carmakers Sell 487 Electric Vehicles to Register 70% Growth

Volvo India, the consistent No. 3 in the luxury EV makers list, saw a decline in demand. The Swedish carmaker sold 41 zero-emission cars and SUVs, down 7% on the 44 units in April 2025.

Rebadged Models’ Share of Toyota India Sales Increases to 58% in FY2026

Ajit Dalvi — Thu, 23 Apr 2026 11:26:36

Product and marketing synergies often pay strong dividends and Toyota Kirloskar Motor (TKM) is benefiting hugely from the global alliance between Suzuki Motor Corp and Toyota Motor Corp. As a result of this product-sharing pact between the two Japanese automakers, Toyota Kirloskar Motor’s strategy to launch a clutch of Maruti-rebadged models has paid off handsomely in the Indian passenger vehicle market since the past three years.

In FY2026, sales of the four badge-engineered models bearing the Toyota logo – the Glanza (based on the Maruti Baleno), Urban Cruiser Hyryder (based on the Maruti Grand Vitara), Rumion (based on the Maruti Ertiga) and the Urban Cruiser Taisor (based on the Maruti Fronx) – crossed the 200,000 mark for the first time.

The 211,759 units are a strong 30% YoY increase (FY2025: 163,483 units) and translate into a 58% share of TKM’s record passenger vehicle wholesales of 366,896 units.

In the past three fiscals, wholesales of these four models have nearly doubled from 107,151 units in FY2024 to 211,759 units in FY2026. Interestingly, in FY2026, all 10 models in TKM’s PV portfolio which, other than the above four rebadged models, includes the Innova twins, Fortuner, Camry, Vellfire, LandCruiser 300 and Hilux posted YoY growth.

With 99,883 units, the Hyryder continued to be the best-selling Maruti-rebadged model for Toyota in for the third fiscal year in a row and contributed to 27% of TKM’s record sales of 366,896 PVs.

HYRYDER IS TOYOTA’S BEST-SELLING REBADGED MODEL FOR THIRD YEAR IN A ROW

The Urban Cruiser Hyryder midsize SUV, which clocked its highest sales in FY2026, continued to be TKM’s No. 1 rebadged model for the third straight fiscal. The 99,883 units gave it a 47% share of this four-model portfolio, improving upon the 37% it had in FY2025 (60,388 units) or the 45% in FY2024 (49,916 units). The Hyryder’s stellar performance is reflected in the fact that it was a close second behind TKM’s longstanding best-seller, the Innova (112,163 units) and even outsold the Innova twins in October 2025, February and March 2026. Since its launch in September 2022, the Hyryder has clocked cumulative sales of over 230,000 units.

The Glanza hatchback takes second position with 52,543 units, up 8% YoY (FY2025: 48,839 units) and a 25% share of the rebadged models’ sales. The Glanza, launched three years before the Hryder n June 2019, has cumulatively sold an estimated 262,000 units till end-March 2026. While the Urban Cruiser Taisor compact SUV (34,913 units) registered an 8% YoY increase, demand for the Rumion MPV (24,420 units) rose 12% YoY.

ALSO READ: SUV, MPV Sales Cross 3 Million for the First Time in FY2026, UV Share of PVs Jumps to 67%

SUV, MPV Sales Cross 3 Million for the First Time in FY2026, UV Share of PVs Jumps to 67%

Ajit Dalvi — Sat, 18 Apr 2026 12:40:51

If India’s passenger vehicle industry achieved its best-ever fiscal year wholesales of 4.64 million units in FY2026, then the credit once again goes to the utility vehicle (UV) segment. The UV sub-segment, which comprises SUVs and MPVs, continues to be the shining star of the Indian PV industry, even as demand returned to the hatchback and sedan segment (1.37 million units, up 2% YoY) compared to FY2025 when passenger car sales were down 12 percent.

The UV segment, which comprises 16 SIAM member companies, was on a roll in FY2026, thanks to the firepower provided by GST 2.0 from October 2025 onwards. While H1 FY2026 saw sales of 1.35 million UVs, up 1% YoY, H2 FY2026 clocked UV dispatches of 1.75 million units, up 20% YoY.

With record wholesales (factory dispatches) of 31,05,025 units last year, UV wholesales rose 11% YoY on a high base (FY2025: 27,97,229 units), which translates into an additional 307,796 units. To put the math and the UV segment’s growth into perspective, FY2026 saw 8,506 SUVs and MPVs sold each day!

That’s not all. . . because the UV segment surpassed the 3 million wholesales milestone in the domestic market for the first time and saw its share of the overall passenger vehicle market (cars, UVs and vans) increase to a new high of 67%, improving upon the 65% in FY2025 and 60% in FY2024. And the FY2026 UV share is a 16% jump over the 51% share in FY2023 (see 12-year PV and UV sales data table below).

SUV and MPV sales rose to a new high of 3.10 million units in FY2026 with the UV share of the Indian passenger vehicle market nearly doubling to 67% in a span of just six years.

What’s common to the past four fiscal years is the surging demand for utility vehicles (UVs), primarily SUVs. Having raced past the 2-million mark for the first time in FY2023 (2.03 million units), sales only got better in FY2024 (2.52 million units) and FY2025 (2.79 million units). Interestingly, the UV sales of 3.10 million units in FY2026 are 57,443 units more than the entire PV sales of 3.04 million units in FY2017 when the UV share was 25% (761,998 UVs).

Maruti Remains UV Leader but M&M, Tata, Toyota & Kia Increase Market Share

Of the cars, vans and UV sub-segments in the overall PV segment, UVs remains the most competitive. Every OEM worth its wheel is fighting for a share and slice of the mega action, with the battle for supremacy highest in the compact SUV and midsize SUV categories. These two sub-segments are also where the Top 20 best-selling models reside.

The UV arena is a tough one, what with 32 SUV and MPV manufacturers (including the 16 SIAM member OEMs with 75 models and the luxury OEMs), nearly 130 individual models and over 1,000 variants.

The Top 6 OEMs (2.91 million units), accounted for 94% of the 3.10 million UVs in FY2026. While Maruti and Hyundai saw their UV share fall, Mahindra, Tata Motors, Toyota and Kia posted gains.

Of the Top 6 players’ UV portfolio, Mahindra leads with 13 SUVs, followed by Maruti and Toyota with nine UVs each. While Kia has seven, Tata Motors has six with the recent addition of the Sierra, and Hyundai has five SUVs. Given the ongoing transition to electric mobility, which has picked up pace in FY2026 with a record 199,590 units, Tata Motors, JSW MG Motor, Mahindra & Mahindra, Hyundai, Kia and Maruti Suzuki already have electric vehicles in their UV stable, while Toyota India is slated to launch the Urban Cruiser e-Bella soon.

India’s Top 6 PV OEMs in FY2026 – Maruti Suzuki (1.82 million PVs, up 4%), Mahindra & Mahindra (660,276 PVs/SUVs, up 20%), Tata Motors (651,261 PVs, up 14%), Hyundai Motor India (584,906 PVs), Toyota Kirloskar Motor (366,896 PVs, up 19%) and Kia India (289,035 PVs/UVs, up 13%) – have benefited from having a strong UV/SUV portfolio. And, Skoda Auto India (75,556 PVs, up 68%), as a result of the strong demand for Kylaq compact SUV, is the new No. 7 UV OEM in FY2026.

For overall UV sales in FY2026, Maruti Suzuki (760,097 units, up 6%) holds onto its No. 1 UV OEM title for the ninth year in a row. The company, which accounted for a market-leading 24.50% share of the 3.10 million UV sales in FY2026, however saw its UV share reduce to 24.50% from 26% in FY2025 because of the higher growth rate displayed by Mahindra & Mahindra and Tata Motors.

M&M (660,276 units, up 20% and 21% UV share) maintains its No. 2 rank as does third-ranked Tata Motors (498,052 UVs, up 15% and 16% UV share). Hyundai Motor India (399,569 units, down 3% and 13% UV share) is followed by a resurgent Toyota Kirloskar Motor (312,007 units, up 21% and 10% UV share). Kia India (289,035 units, up 13% and 9% UV share) is ranked sixth. Skoda India, as a result of the Kylaq compact SUV selling 49,089 units and accounting for 80% of the company’s total UV sales of 61,073 units, has risen one rank from FY2025 to No. 7 in FY2026.

With a record 14,73,422 units sold in FY2026 and a 47% share of the record 3.10 million UVs, the compact SUV segment remains the largest sub-segment but there’s growing demand for midsize SUVs which are set to come into their own in FY2027 what with some new models launched in H2 FY2026. From the return of the Renault Duster, which has already given a fresh charge to the company in its first month, to the Tata Sierra with sales of over 23,000 units in 3 months, and the upcoming Nissan Tekton, the new fiscal promises to be an exciting one for India’s booming utility vehicle market.

ALSO READ: Tata Nexon reclaims No. 1 SUV crown in FY2026

Thar Roxx and Thar share of Mahindra’s record SUV sales in FY2026 jumps to 19%

New Duster drives Renault India volume revival in March with 1,402 units

India Two-Wheeler Sales Hit Record 21.4 Million Units in FY26, Crosses Pre-COVID Peak

Kiran Murali — Mon, 13 Apr 2026 17:28:52

The financial year 2026 marked a turning point for India’s two-wheeler industry, which finally surpassed the pre-COVID peak after several years of gradual recovery. Two-wheeler retail sales came in at 21.42 million units during the year, growing 13.4% on a yearon- year basis, reflecting a steady return of demand across markets. The long-awaited recovery was unlocked by improved affordability, better rural cash flows and a wider range of products that catered to both entry-level buyers and more aspirational customers.

The first half of the year, from April to August, remained subdued, with most months recording low single-digit growth as consumers stayed cautious amid uncertainty around the proposed GST changes. Many buyers deferred purchases after indications that tax rates on vehicles could be reduced.

The momentum shifted in the second half. From September, demand strengthened as the GST revision improved affordability and lifted consumer sentiment, while the festival season further supported sales across segments. The competitive landscape also saw notable changes.

Hero MotoCorp retained its leadership position and TVS Motor emerged as the biggest share gainer among the top five manufacturers. In electric mobility, registrations rose 22% to 1.40 million units, with penetration increasing to about 6.5% of total two-wheeler sales, indicating a gradual but steady shift toward electrification despite temporary supply challenges. The year also marked a clear shift in the electric two-wheeler market, with leadership moving back to established manufacturers.

Hero Vs Honda

Hero MotoCorp maintained its leadership position in the domestic two-wheeler market during FY26 despite strong competition from Honda Motorcycle & Scooter India and managed to slightly widen the gap with the Japanese player in both retail and wholesale numbers.

The company dispatched 6.07 million units in the domestic market during the financial year 2026, compared with Honda Motorcycle & Scooter’s domestic sales of about 5.75 million units, giving Hero MotoCorp a lead of more than 300,000 units in the country’s largest two-wheeler market.

On the retail front, Hero MotoCorp’s retail sales came in at 6.08 million units, while Honda’s retail sales were at 5.36 million, 721,000 units lower than Hero MotoCorp. The gap between the two players, which more than halved to 655,000 units in the financial year 2025, saw an increase in FY26. The domestic market remains the backbone of Hero’s overall leadership, given the company’s strong dependence on the local market, unlike Honda, which has a strong export base.

The gap between the two companies in domestic dispatch volumes widened slightly in the financial year 2026 compared with around 286,000 units in the previous year, indicating a stabilisation in Hero MotoCorp’s performance after a period of pressure.

The rivalry between the two companies has intensified over the past few years, with Honda steadily closing the gap through consistent growth, particularly in scooters. However, Hero’s entrenched position in the commuter motorcycle segment has helped the company defend its leadership in the domestic market. The competitive landscape was more challenging for Hero MotoCorp in the previous financial years, with the Indian player losing its leadership to the Japanese player in a few months.

Hero’s sustained leadership in the domestic market was supported by continued demand for its commuter motorcycle portfolio, particularly the Splendor range, which remains a key contributor to volumes in rural and semi-urban markets. This was especially the case given that GST cuts gave a fillip to demand at the base of the pyramid.

The automaker has also been focusing more on the mid-size and premium segments to ride on the premiumisation trend, but has been met with limited growth in its electric mobility business, which added to its domestic dispatch momentum during the year. The expansion of Hero’s electric vehicle portfolio played a growing role in strengthening its domestic position.

Registrations of its electric scooter sold under the Vida brand nearly tripled during FY26, helping the company increase its share in the electric two-wheeler segment. The rapid growth in electric volumes provided additional support to overall domestic performance at a time when competition in conventional segments remained intense. Honda, meanwhile, continued to rely on its strong scooter portfolio to drive domestic sales.

The company remains a leading player in the scooter segment, though its earlier dominance has moderated as competitors such as TVS Motor Company and Suzuki Motorcycle India expanded their presence. This shift has created a more competitive environment in urban markets, where scooters account for a significant share of demand.

In commuter motorcycles, Honda continued to face headwinds against Hero’s deep-rooted dominance, which limited its ability to significantly alter the domestic market hierarchy despite expanding its entry-level product portfolio. Hero’s extensive dealer network and strong brand recall in rural markets continued to provide structural advantages in this segment.

E-2W Market

India’s electric two-wheeler market saw its registrations rise 22% year-on-year during 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 semiurban markets.

Unlike the earlier years, traditional ICE OEMs now hold more than half of the electric twowheeler 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 twowheelers influencing purchase decisions, particularly in the entry and commuter segments. TVS Motor emerged as the leader. Its 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% yearon- 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.

Looking Ahead

Rating agencies and brokerages are forecasting mid-to-high single-digit growth for the domestic twowheeler industry going forward on the back of better affordability, new launches. Production plans of major OEMs indicate that competition in the domestic market will remain intense.

According to industry sources, Honda is targeting production of about 6.79 million two-wheelers in the financial year 2027, while Hero MotoCorp plans output of around 6.92 million units during the same period, about 200,000 units higher than Honda. TVS Motor, which surpassed Yamaha in 2025 to become the world’s third-largest manufacturer by sales volume globally, is now targeting double-digit growth in its two-wheeler production to 6.8–7.2 million units in FY27.

This production target would position TVS Motor to challenge Honda for the number two spot in India’s twowheeler market. However, growth estimates and production targets for next year were made assuming normal business conditions, up until the start of the war in West Asia.

If the war continues for a longer period, the demand and production numbers may change. Brokerages highlighted cost pressure for manufacturers following the surge in input costs across all commodities amid the West Asia war. Motilal Oswal noted that there are clear headwinds emerging for the automotive sector, given the ongoing geopolitical turmoil in West Asia.

“While most of the large companies are managing gas supplies at their end very well so far (as well as their supply chain), there is no certainty that they would continue to do so in the coming months if this situation persists,” said Motilal Oswal said in a report.

According to Equiris Securities, the Indian two-wheeler market is entering a more stable growth phase, aided by replacement demand, better affordability following GST reductions and rising electrification, particularly in scooters, with the product mix gradually shifting toward scooters and electric vehicles over time.

“We expect domestic 2W volumes to grow ~6% CAGR over FY25–FY30E, supported by replacement recovery and rising penetration, before moderating structurally over the long term as electrification reshapes the industry mix,” the investment banker said.

Toyota Hyryder Outsells Innova Again in March, Sells 99,890 Units in FY2026

Ajit Dalvi — Sat, 11 Apr 2026 11:28:30

The Toyota Urban Cruiser Hyryder midsize SUV has outsold Toyota Kirloskar Motor’s best-selling model, the Innova MPV, for the third time in FY2026 and for two months in a row.

Having first achieved this feat with its highest monthly wholesales of 11,555 units in October 2025, news which was broken by Autocar Professional, the Hyryder repeated the act in February 2026 with sales of 9,359 units and now in March. In March 2026, the Hyryder sold 10,206 units, up 93% YoY (March 2025: 5,286 units), which is 50 units more than the combined sales of the Innova Hycross and the Crysta (10,156 units, up 3% YoY).

This made the Hyryder the best-selling Toyota model in March 2026, accounting for a 29% share of TKM’s domestic market factory dispatches of 35,125 units, up 19% YoY, which is similar to the two Innovas’ share.

Though the Hyryder outsold the Innova thrice in FY2026, the MPV remained TKM’s best-selling model with 112,186 units to the Hyryder’s 99,890 units. Will the Hyryder turn the tables on the Innova in FY2027?

The Urban Cruiser Hyryder’s March sales constitute the second instance of the midsize SUV surpassing 10,000 units after October 2025 (11,555 units). The midsize SUV’s cumulative 12-month wholesales of 99,890 units in FY2026 are a handsome 65% YoY increase (FY2026: 60,388 units), albeit they missed hitting the 100,000 fiscal year milestone by a whisker – just 110 units. The YoY increase is an additional 39,502 units, which has powered Toyota India’s record wholesales of over 360,000 passenger vehicles last fiscal.

What added tailwinds to the Hyryder sales in the second half of FY2026 was the GST 2.0-driven price reduction, followed a few months later by the launch of the Hyryder Aero Edition which features an exclusive styling package with front spoiler, rear spoiler and side skirts. End-January 2026 saw TKM introduce an official accessories ‘Tech Package’, which adds some features and safety kit for a Rs 29,499 premium, a strategic model-differentiator move which would have helped accelerate sales.

Nevertheless, despite the charge of the Hyryder, the Innova maintained its numero uno status in the Toyota India stable and kept its midsize SUV sibling at bay in FY2026. In FY2026, combined Innova Hycross and Crysta sales were 112,186 units, up 5% YoY (FY2025: 107,204 units) and 12,296 units ahead of the Hyryder.

Despite the growing competition, the Hyryder has made its mark in the midsize SUV market. The strong-hybrid variant has an EV-only mode that delivers stellar economy.

Making a Mark in a Competitive Midsize SUV Market

The Urban Cruiser Hyryder is part of the competitive midsize SUV pack which has been witnessing growing demand over the past year. Its rivals include the Tata Sierra, Hyundai Creta, Maruti Victoris, Kia Seltos, Maruti Grand Vitara, Skoda Kushaq, Volkswagen Taigun, Renault Duster and Citroen Aircross. It also competes with SUV-coupes like the Tata Curvv and Citroen Basalt.

The petrol-only SUV is currently available in 13 variants — 8 petrol, 2 CNG, and 3 strong hybrid — with pricing starting at Rs 10.99 lakh for the Petrol E Neodrive MT trim to the top-end Petrol V Hybrid AT trim (Rs 19.99 lakh ex-showroom). The engines on option are a 103hp petrol and a 116hp strong-hybrid petrol, with manual and automatic transmission choices. The petrol engine is also available with an AWD option with an automatic transmission. A CNG powertrain (89hp and 121.5 Nm) mated with only a manual transmission is also offered. The Toyota Hyryder’s mileage ranges between 19.2kpl and 27.97kpl.

The Hyryder’s USP is its strong-hybrid petrol powertrain, aimed at filling the void created by the lack of a diesel engine and also bridging the gap between petrol and EVs. With a claimed fuel efficiency figure of 27.97kpl, the Hyryder is one of the most fuel-efficient vehicles available in India and benefits from technology that minimises losses in a pure IC engine through electrification — leveraging benefits such as brake-energy recuperation and turning off the engine while idling excessively.

The Hyryder, launched in September 2022, drove past the 200,000 sales milestone in December 2026, and has clocked total sales of 232,033 units from launch till end-March 2026. While the first 100,000 units were sold in 26 months, the next 100,000 units’ sales took 15 months, reflecting the frenetic increase in customer demand as well as its growing share of TKM sales. Over 85,000 units have also been exported till date.

In FY2026, while the two Innovas took the 11^th rank amongst the best-selling utility vehicles, the Toyota Urban Cruiser’s stellar performance saw its jump five ranks YoY to No. 14 and helped Toyota Kirloskar Motor achieve record UV and PV sales in FY2026.

Of the company’s 10-model portfolio, the Innova continued to have the largest model-wise share – 31% in FY2026. The Hyryder with 27% was its second best-selling product, maintaining this podium position right since FY2024 which was its first full year of sale. Will the Hyryder, which is witnessing a much higher rate of growth than the Innova and also outsold the MPV in the last quarter of FY2026, turn the tables on its big brother in FY2027? Watch this space for the latest sales and number-crunching analyses.

ALSO READ: Tata Nexon reclaims No. 1 SUV crown in FY2026

The Million-Unit Milestone: FY26 Redefines India’s Tractor Market

Anurag Chaturvedi — Fri, 10 Apr 2026 11:25:00

Few years in recent memory have brought together as many tailwinds for Indian tractor makers as fiscal 2026. An above-normal monsoon refilled rural cash flows. State governments in poll-bound Maharashtra and Bihar opened the subsidy taps. An unexpected cut in the Goods and Services Tax on tractors from 12 to 5 percent in late September lowered sticker prices overnight. And as the deadline for stricter TREM 5 emission norms drew closer, dealers and farmers pulled forward purchases they might otherwise have made later. By the close of March, the industry had sold more tractors than ever before.

Domestic wholesale dispatches are estimated to have risen by 23.47 percent to 11,60,231 units in FY26. Retail registrations tracked by FADA reached 10,50,077, up from 8,82,825 a year earlier. Both numbers are the highest the Indian tractor industry has recorded, and the first time wholesale volumes have crossed one million in a single fiscal year.

Mahindra & Mahindra retained its leadership by a wide margin. The group, which houses both the Mahindra and Swaraj brands, sold 5,05,930 tractors in the domestic market in FY26, a 24.28 percent rise over the previous year, lifting its wholesale share marginally to 43.61 percent. On the retail side, the Mahindra brand alone accounted for 23.81 percent of registrations and Swaraj for another 18.76 percent. In its April 1 statement, Veejay Nakra, president of Mahindra's Farm Equipment Business, said the company "ended FY26 with highest ever sales of 5,05,930 registering growth of 24%". He added that March alone delivered 43,403 units, a 33 percent jump "driven by the full Navratri season falling entirely in March'26, unlike last year when it was split between March and April".

The fastest gainer among the top six was CNH Industrial's New Holland, which expanded its wholesale volumes by 36.95 percent to 53,225 units and lifted its FADA-tracked retail sales by close to a third to 47,122 units. Speaking to Autocar Professional, Narinder Mittal, who heads CNH India, traced the year's outperformance to an effort that had begun nearly two years earlier, built on investments in network, brand and product. "Last year was a good year because of those actions we have taken," he said. The returns showed in the north. New Holland's market share in Punjab moved from around 11.5 to roughly 15 percent over the year, and in Haryana from about 6.5 to 9 percent. Mittal acknowledged that the September GST cut had caught the company off guard. "GST was something which was not expected," he said.

The Policy Tailwind

The single intervention that defined the year was GST 2.0, approved at the 56th Council meeting on September 3, 2025. The levy on tractors was cut from 12 to 5 percent with effect from September 22, lowering ex-showroom prices by ₹40,000 to ₹60,000 per unit depending on horsepower. The Council also reduced GST on tyres, tubes, hydraulic pumps and agricultural diesel engines from 18 to 5 percent, correcting a long-standing inverted duty structure.

Retail data tracked the change almost in real time. November 2025 was the industry's strongest month at around 1.26 lakh units, with December and January each holding at roughly 1.15 lakh.

Beyond GST, the fiscal backdrop was unusually supportive. The Union Budget for 2026-27 allocated ₹1,40,561 crore to the agriculture ministry. The Pradhan Mantri Kisan Samman Nidhi disbursed roughly ₹78,000 crore in four installments. The Sub-Mission on Agricultural Mechanisation continued to subsidise 40 percent of the cost of new equipment for general-category farmers and 50 percent for small, marginal, women and SC/ST buyers.

By January 2026, the Agriculture Infrastructure Fund had sanctioned ₹80,224 crore for over 1.5 lakh projects. Maharashtra's Mahayuti government ran the Namo Shetkari Mahasanman Nidhi, which adds ₹6,000 a year to PM-KISAN's ₹6,000, and committed ₹20,000 crore to a free-power scheme for irrigation pumps. Bihar, which went to the polls in November 2025, introduced a ₹3,000 state top-up to PM-KISAN that lifted the combined annual transfer for a Bihar farmer to ₹9,000, and offered subsidies of 40 to 80 percent on 91 categories of farm machinery. The pattern was clear in the sales data. "Maharashtra clearly outpaced pan-India growth by a decent margin," said Hemal Thakkar, senior director at CRISIL, attributing the gap partly to political factors.

The regional mix has shifted too. The northern belt still accounts for over a third of sales, but its growth has moderated relative to the rest of the country. The west was the strongest performer in FY26, taking nearly 40 percent of the market on year-on-year growth of up to 28 percent.

Trade policy added another layer. The India-UK Comprehensive Economic and Trade Agreement, signed in July 2025, grants 99 percent of Indian exports duty-free access to the British market from April 2026. The India-EU FTA was concluded on January 27, 2026, and the EFTA agreement with Switzerland, Norway, Iceland and Liechtenstein took effect on October 1, 2025, bringing with it a binding $100 billion investment commitment over 15 years. In early February, a reset with Washington lowered the effective US tariff on Indian goods from a stacked 50 to 18 percent, restoring competitiveness for exporters such as Mahindra and Sonalika after a bruising first half. Tractor exports are expected to cross 1 lakh units for the first time in FY26.

The looming implementation of TREM 5 shaped the second half of the year. The norms, comparable in scope to the BS-VI transition for passenger vehicles, will require diesel particulate filters and selective catalytic reduction systems on most tractor engines, and ICRA estimates this will add ₹1.5 lakh to ₹3 lakh to sticker prices once fully implemented. A draft notification from the Ministry of Road Transport and Highways has since proposed a phased rollout, starting with sub-25 HP and above-75 HP tractors in October 2026 and pushing the full norm for the dominant 25 to 75 HP segment to April 2032. Whether the prospect of those price increases pulled some FY27 demand into the closing months of FY26 remains contested. Thakkar is sceptical. "I don't think so," he said. "At the end of the day, the dealer knows the customer will come back to buy again in the future. Making a one-time push at the customer's expense is not a sustainable strategy for the dealer."

The Currents Beneath the Surge

The power profile of the Indian tractor market is shifting underneath these headline volumes. The 41-50 HP segment has grown from under half of all sales in FY19 to nearly two-thirds by FY26, largely at the expense of the 31-40 HP band. The 51 HP and above category has shrunk to a sliver. The industry appears to have settled on a band that suits both commercial haulage and the economics of custom hiring.

The first shift is the rise of non-farming use. Tractors are increasingly deployed for haulage, construction, sand mining and rural infrastructure work, and the share of commercially deployed units now varies, by various estimates, between 12 and 20 percent in normal years and considerably higher when rural construction activity is strong. An analyst who asked not to be named put the FY26 figure as high as 45 to 55 percent, citing the Vahan portal as the closest available source even though the absence of a separate commercial registration category for tractors makes precise measurement impossible.

Thakkar offers a more conservative band. "Whenever rural construction intensity is very high, commercial demand picks up," he said, noting that eastern states such as Bihar, West Bengal, Jharkhand and Odisha tend to have the highest commercial share. CNH's Mittal, too, said the company is "quite extensively working on the loader application" and on rig and trench-digging variants, with "a substantial improvement on these applications" expected this year.

The second shift concerns the land itself. The average operational landholding in India fell from 1.08 hectares in 2016-17 to 0.74 hectares in 2021-22, a product of inheritance laws, urbanisation and economic distress. On its face, this is a structural negative for an industry whose unit economics improve with scale. "Structurally, it should impact the industry negatively, because smaller farmland sizes reduce affordability," Thakkar said. The industry has so far defied that logic by moving up the horsepower curve, as labour shortages make mechanisation indispensable and as land consolidation through custom hiring offsets the fragmentation of ownership.

That brings the third trend into view. Custom Hiring Centres, which rent machinery to farmers who cannot justify the capital cost of ownership, have proliferated to 75,915 across India as of 2025, according to a recent review in the Asian Journal of Current Research. Punjab leads with 11,148 centres, followed by Andhra Pradesh and Haryana. Studies cited in the review suggest hiring through a CHC cuts the cost of cultivation by around 15.71 percent compared with private rentals and lifts net returns by 24 percent.

Financing remains the most reliable underpinning of demand. Roughly 95 percent of tractors sold in India are bought on credit, and 125 basis points of policy rate cuts delivered by the Reserve Bank in 2025 lowered borrowing costs for rural buyers.

Replacement demand, muted in 2023-24 because the cohort of tractors coming up for replacement was small, has also turned supportive. "The base coming up for replacement is from 2018-2019, which were strong years for the industry," Thakkar said, adding that a typical owner replaces a tractor every five to nine years.

Whether FY26 marks a new floor for the industry or an aberration will hinge largely on the rains. ICRA expects domestic tractor volumes to grow at a more modest 1 to 4 percent in FY27, citing the high base, the probability of an El Niño event, and the demand hangover after the GST-fuelled rush of the second half. CRISIL strikes a similar tone. "On a very high base, 20 percent plus for FY26, growth will be very muted. We will be happy if the industry grows at even a marginal single-digit level," Thakkar said. He flagged two specific risks for the year ahead. The first is the timely availability of fertilisers, made uncertain by the West Asia conflict, since a delay in supply during the sowing season directly impairs production. The second is the IMD's forecast of subpar rainfall, which in his view "could bring the industry down" if it materialises.

Even a flat year would leave the industry within striking distance of the run rate it touched in FY26. As one analyst, who requested anonymity, observed, "We have reached sales of 1,156,000 units, the highest ever recorded. Even if we are able to maintain around 1,127,000 units, that is still a very big number." The million-unit mark, in other words, may have begun to look less like a ceiling and more like a baseline.

From Slow Start to Strong Finish: India PV Sales Cross 47 Lakh in FY26

Darshan Nakhwa — Fri, 10 Apr 2026 10:18:00

India’s passenger vehicle (PV) market closed the financial year 2025-26 on a historic note, with retail sales crossing the 47-lakh mark for the first time. However, this record performance was shaped by sharp contrasts, with a subdued first half followed by a strong policy-led rebound in the second.

Much of the growth in the second half of the year was driven by the government’s push to boost consumption through policy interventions, improving macroeconomic conditions, and tactical industry actions.

“The year did not start out exciting, but it became exciting because of the interventions that GST brought in. There was a clear indication that more money was coming into consumers’ hands, and that supported demand,” said Ravi Bhatia, President, JATO Dynamics India.

According to data from the Federation of Automobile Dealers Associations (FADA), PV retail sales stood at 47,05,056 units in FY26, up 13% year-on-year. The industry moved through two distinct phases during the year, shaped as much by macroeconomic uncertainty as by policy intervention.

The April to September period was marked by caution. Geopolitical tensions with Pakistan, tariff uncertainties, and heavy rains disrupted both supply chains and consumer confidence. Financing remained tight, and buyers, especially in the entry-level segments, deferred purchases amid uncertainty around GST 2.0.

The result was a muted first half, with dealerships reporting slower footfalls and rising inventory levels. PV stock, which had been a persistent concern throughout FY25, remained elevated in the early months of FY26. During this period, PV sales grew 4% year-on-year to 19,50,586 units.

The narrative changed decisively in the second half. The rollout of GST 2.0 improved affordability, particularly in the small and mid-size car segments, and helped unlock pent-up demand. The recovery was also aided by a strong festive season, lower borrowing costs following repo rate cuts, a stabilizing macro environment, and aggressive discounting and pricing interventions by OEMs.

The second-half surge was further underpinned by a release of pent-up replacement demand, as customers who had deferred purchases amid high prices and uncertainty returned to the market following GST-led corrections.

The strength of the recovery was evident in Q3, which saw record PV sales of over 12.7 lakh units, underscoring the sharp demand rebound following GST-led interventions.

“FY26 was clearly a two-phase year. The second half saw a decisive upshift as GST 2.0 improved affordability, lifted sentiment, and triggered broad-based retail momentum,” said FADA President CS Vigneshwar.

Importantly, the year also marked a shift in OEM strategy, with higher pricing power and premiumization driving improved margins, as automakers balanced affordability gains from GST with selective price increases.

“We saw average prices go up; mass-market car prices went up by over 5% and luxury cars by about 8.8%, which clearly indicates that margins improved for automakers,” Bhatia said.

The recovery was not just visible in overall PV volumes but also in inventory discipline. Dealer stock levels corrected sharply from over 50 days to around 28 days by March, signaling a healthier balance between wholesale dispatches and retail demand. For the first time in recent years, the industry appeared aligned, and what was being sold to dealers was largely being sold to customers.

However, industry sources indicate that inventory remains uneven, with faster-moving models facing supply constraints while slower-moving variants continue to account for a significant share of dealer stock.

In FY26, rural markets emerged as a key growth driver for PVs, outpacing urban regions by a meaningful margin. Rural sales grew by 17.12% during the year, compared to 10.43% in urban markets.

“Rural demand has been a key driver of growth, supported by improved farm incomes and favorable monsoon conditions,” said Hemal Thakkar, Senior Director, Crisil Intelligence.

The stronger rural traction was supported by improved farm incomes, better monsoons, and increasing aspiration-driven purchases, particularly in SUVs and utility vehicles. In contrast, urban demand remained relatively measured in the first half due to macro uncertainties and financing constraints, before picking up pace in the second half following GST 2.0-led improvements in affordability and sentiment.

A Reshaped Pecking Order

FY26 did more than just deliver record volumes; it altered the competitive landscape of India’s PV market.

For years, the hierarchy beneath Maruti Suzuki India Ltd had remained relatively stable, with Hyundai Motor India Ltd holding the second position and Tata Motors Passenger Vehicles Ltd and Mahindra & Mahindra Ltd alternating between third and fourth. FY26 disrupted that order.

Mahindra emerged as the second-largest player with a 13.42% market share. Hyundai slipped to fourth place with a 12.29% share, down sharply from 13.48% in FY25. Even market leader Maruti Suzuki saw its share decline to 39.71% from 40.20% in FY25, marking the fifth consecutive year of erosion since FY22.

The used car market has also been slower to adjust to the new price dynamics, further complicating recovery in the entry-level segment.

Hyundai, on the other hand, faced a different set of challenges. While it has a broad portfolio, parts of it have aged, and its positioning appears increasingly misaligned with the fastest-growing segments of the market. The company has had limited successful offerings in the highly competitive sub-Rs 12 lakh SUV segment, where demand has surged.

The erosion in Hyundai’s share is particularly notable. The company’s domestic volumes declined even as the broader market expanded, making it the only one among the top-four OEMs to report negative growth.

In FY26, other mass-market players delivered mixed performances. Toyota Kirloskar Motor Pvt Ltd continued to gain traction, aided by strong hybrid offerings, increasing its share to 7.13%. Kia India Pvt Ltd held steady with a 5.94% share, and Skoda Auto Volkswagen Group saw its share increase to 2.34%. Meanwhile, Honda Cars India Ltd and Renault India Pvt Ltd saw marginal declines, reflecting limited product momentum.

The luxury segment, while small in absolute terms, continued to grow steadily in FY26. Mercedes-Benz India remained the market leader with 18,160 units, followed closely by BMW India Pvt Ltd at 17,301 units. Jaguar Land Rover India Ltd and BYD India Pvt Ltd also posted incremental gains, reflecting rising demand for premium SUVs and electric vehicles.

According to JATO Dynamics India, among luxury passenger vehicles, Mercedes-Benz’s E-Class emerged as the highest-selling model in FY26, with sales rising 22.3% year-on-year to 4,350 units. The standout performer, however, was BMW’s electric SUV iX1, which recorded a sharp 378% surge to 3,210 units, highlighting the growing traction for EVs in the luxury space. Mercedes-Benz also saw steady demand for its SUVs, with the GLE growing 11.5% to 3,069 units and the GLS remaining largely stable at 2,791 units. Meanwhile, BMW’s 3 Series sedan posted modest growth of 3% to 2,753 units.

Body Styles and Powertrains

The market is also increasingly splitting into two distinct cohorts: value-conscious buyers at the entry level and experience-driven consumers willing to pay a premium, forcing OEMs to recalibrate product strategies across price bands.

“You need different products for India 1 and India 2. Those who are reading the market correctly are the ones succeeding,” Bhatia noted.

If FY26 had a defining theme, it was the continued dominance of SUVs. The body style now accounts for over half of all PV sales, reshaping the structure of the Indian car market.

Consumers are increasingly prioritizing higher ground clearance, better road presence, and feature-rich vehicles. As a result, hatchbacks continued to lose share, particularly in the entry-level segment. Sedans, mini MPVs, and vans saw steady demand, while niche categories such as coupes and convertibles remained small.

The shift was even more visible in the fuel mix. Petrol/ethanol vehicles continued to dominate but saw their share decline to 47.48% from 50.82% in FY25, indicating a gradual diversification. Diesel remained stable at around 18%, while CNG/LPG saw a rise to 21.98%, driven by lower running costs and improved availability.

The rise of CNG has also been closely linked to fleet demand, with segments such as taxis and shared mobility driving a significant portion of volumes, supported by faster replacement cycles and favorable operating economics.

Hybrids accounted for 8.22%, while EVs continued to gain traction, with their share rising to 4.25% in FY26 from 2.61% a year ago. Customer preference for greener technologies gained further momentum in FY26, with EV volumes growing 84% year-on-year to 1,99,923 units, as per FADA data.

However, EV adoption remains uneven. “EV penetration in the sub-Rs 10 lakh segment has actually declined, which shows that affordability remains a key constraint,” Bhatia said.

Beyond pricing, practical challenges around usage continue to weigh on EV adoption. “Charging infrastructure is still not convenient enough — availability is one thing; usability is another,” he added.

The shift toward alternative powertrains reflects a broader change in consumer behavior. “India is no longer just a value-for-money market. Buyers today are looking for experience, technology, and aspiration,” Bhatia said.

Buyers are increasingly evaluating the total cost of ownership rather than just the upfront price, especially in a high fuel-cost environment due to emerging geopolitical tensions.

The transition to E20 fuel has also introduced new considerations for consumers, with concerns around real-world efficiency and long-term engine performance influencing buying decisions.

According to JATO Dynamics India, petrol vehicle sales remained largely flat at 26,06,118 units in FY26 compared to 26,04,939 units a year ago. In contrast, CNG vehicles recorded strong traction, with sales rising 23.3% year-on-year to 10,21,156 units, driven by lower running costs and wider availability. Diesel also saw a healthy rebound, growing 10.2% to 8,80,735 units, supported by sustained demand in SUVs and utility vehicles.

Outlook for FY27

As the industry moves into FY27, sentiment remains cautiously optimistic. According to FADA, nearly 75% of dealers expect growth in the 3-7% range, indicating confidence in the underlying demand story. However, risks remain.

“While the growth outlook for FY27 remains positive, it is likely to be more measured. With several macroeconomic headwinds beginning to emerge, there is a slight downward revision; we expect the PV market to grow by 5% to 7% from an earlier guidance of 3% to 5%,” added Thakkar. (Note: You may want to review this quote with the author, as a change from 3-5% to 5-7% is technically an upward revision, contradicting the word "downward".)

Geopolitical uncertainties, particularly in West Asia, could disrupt supply chains and impact production schedules. Rising fuel prices and a broader economic slowdown are also key concerns.

Rising input costs, particularly in energy and raw materials, are also beginning to strain supplier ecosystems, especially at the Tier 2 and Tier 3 levels, potentially impacting production economics in the coming quarters.

“Increasing input costs, particularly in energy and commodities, are beginning to put pressure across the value chain, especially for Tier 2 and Tier 3 suppliers,” said Thakkar.

At the same time, the accelerating shift toward EVs and CNG vehicles is expected to continue. Over 56% of dealers report increasing customer interest in these powertrains, suggesting a structural transition in the market.

“Looking ahead, industry momentum is expected to sustain, led by growth in SUVs, CNG, and EVs. At the same time, the industry will need to closely monitor geopolitical developments to mitigate potential supply-side risks. For Tata Motors Passenger Vehicles, we expect to build on the strong momentum of H2 and continue to deliver industry-beating growth in FY27, supported by recent launches, a strong pipeline of new products, and an established multi-powertrain strategy,” said Chandra.

“We stay mindful of the prevailing geopolitical uncertainties; Hyundai Motor India Limited is well-prepared for a strong FY2026-27, delivering aspirational, connected, and innovative products,” TarunGarg, MD & CEO of HMIL, said.

Automakers, too, are preparing for the next phase of growth. Tata Motors is expanding its EV lineup with upcoming launches such as the Sierra EV and Safari EV. Hyundai is banking on product refreshes and new launches, including its EV push, to regain momentum. Honda Cars India is also set to enter the EV space with its first battery electric vehicle.

A Year of Transition

FY26 will be remembered not just for its record volumes but for the shifts it triggered.

It was a year where policy intervention, particularly GST 2.0, played a decisive role in reviving demand. It was also a year where the market’s center of gravity moved further toward SUVs and alternative powertrains. More importantly, it marked a change in competitive dynamics. Mahindra and Tata have emerged stronger, while Maruti and Hyundai face the challenge of realigning their portfolios with a rapidly evolving market.

While FY26 delivered record volumes, a significant part of the growth was underpinned by policy support, pricing interventions, and replacement demand. This raises questions about how sustainable this momentum will be as these tailwinds begin to normalize—particularly as the West Asia crisis fuels inflationary pressures, strains supply chains, and risks dampening demand through rising prices.

“The momentum seen in the second half of FY26 may not fully sustain as some of these supporting factors begin to normalize,” Thakkar opined.

As the industry steps into FY27, the outlook is more measured, even as the sector remains on course to approach the 5-million annual sales mark over the medium term. SIAM, the industry body, has guided for 5–7% growth, though a downward bias is emerging amid the protracted West Asia crisis, which is expected to impact input costs, supply chains, and pricing.

“The industry is clearly moving toward the 5-million mark, but getting there will depend on how demand holds up amid rising prices and macro uncertainties,” said Bhatia.

These pressures are likely to temper momentum, requiring automakers to carefully balance both cost and demand in the year ahead.