India's e-2W industry registered retail sales of 1,90,941 units in March 2026, a daily run rate of 6,159 units, marking 45% YoY growth over March 2025's 1,31,460 units and beating the previous monthly best by nearly 46,000 units.

The growth was driven by a confluence of structural factors, while discounts were largely not present in the market. The PM E-Drive Scheme was set to close on March 31, prompting urgency among buyers, though the government extended it by four months to July 31, 2026, with a reduced subsidy, four days before the deadline.

Festivals like Gudi Padwa and Ugadi, the new year for Maharashtra, Andhra Pradesh, Telangana, and Karnataka, which are two of the top e-2W buying states, and Navratri in many parts of the country helped carry the momentum. Meanwhile, the Iran oil crisis accelerated EV adoption as ICE fence-sitters moved toward zero-emission mobility.

March also saw a new ownership model emerging in the 2W EV space, BaaS. What was confined mostly to the 4-wheeler space has started trickling down to 2W EVs. TVS rolled out Battery-As-A-Service across its EV portfolio on March 12, lowering upfront costs without traditional discounting, and launched the Orbiter V1 at ₹49,999 under the BaaS model. Hero MotoCorp had already announced BaaS for its products.

The full-year picture is encouraging too. The electric two-wheeler (E2W) segment recorded strong growth in Financial Year 2026 (FY26), crossing the 14 lakh unit mark. Growth was supported by new product launches, improving charging infrastructure, and rising consumer acceptance.

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