Year-Ender 2025: Is India Ready for Electric Vehicles? 2026 Brings A Reality Check

India's electric mobility story is shifting gears. As 2026 begins, data and market trends reveal a turning point, from early adoption to mainstream momentum. What do the numbers really say about India's EV drive?

Passenger Vehicle Boom Continues

India's electric passenger vehicle segment saw record growth in 2025, clocking over 1.6 lakh units sold between January and November, a 78 percent year-on-year surge. Leading automakers like Tata Motors, JSW-MG Motor, and Mahindra & Mahindra continued to shape this fast-evolving segment.

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Globally, electric mobility maintained its upward curve, China achieved 50 percent EV penetration in auto sales, and worldwide, one in four vehicles sold was electric. Interestingly, emerging markets such as Thailand and Vietnam outpaced several advanced economies, even as Europe faced headwinds due to subsidy cuts and rising costs. The EU is reportedly rethinking its 2035 gasoline vehicle ban, showing how dynamic the global EV landscape now is.

Two-Wheelers Hit a Temporary Slowdown

On the two-wheeler front, the momentum slowed toward the end of 2025. A recent GST overhaul made traditional internal combustion commuter motorcycles cheaper, prompting a short-term slump in EV demand.

According to industry data, sales fell from around 1.43 lakh units in October to nearly 1.17 lakh in November, following a strong run earlier in the year. Still, market leaders such as TVS, Bajaj, Ather Energy, and Hero MotoCorp remain optimistic, especially as EV penetration in two-wheelers crossed the 5 percent mark in 2025, a significant milestone for the sector.

Launch Wave Keeps EV Buzz Alive

Manufacturers were relentless through 2025, introducing a slew of new products to maintain excitement and encourage wider adoption. From design innovations to improved range and performance, the competition intensified across price segments.

Major automakers, Mahindra, Tata Motors, and Hyundai, led from the front, while global EV giants like VinFast and Tesla signalled renewed confidence with their India plans. In 2026, analysts expect electric passenger vehicle penetration to hit double digits, driven by expanding model portfolios and enhanced charging availability.

The Road Ahead: Premium And Local

The two-wheeler space is now headed for a premium turn. Upcoming launches from Royal Enfield, Yamaha, and Ultraviolette promise to bring performance-oriented choices to the segment. Meanwhile, Maruti Suzuki's long-awaited e-Vitara is expected to enter the market soon, marking its first step into the EV space.

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Other brands like Hyundai, Honda, and Volkswagen are set to ramp up their electric portfolios, further intensifying competition among domestic and global players.

Policy Push Powers Local Manufacturing

India's EV growth is being bolstered by strong government programs. The Production Linked Incentive (PLI) scheme continues to boost local manufacturing of advanced automotive components, while the PM e-Drive initiative is incentivising electric two and three-wheelers, buses, and public charging networks.

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Major investments from Tata Group, Ola Electric, and Suzuki are shaping India's EV battery manufacturing ecosystem, with large-scale lithium-ion gigafactories already under development. This domestic manufacturing focus is poised to cut dependence on imports and push technological innovation further.

Mainstream Moment Ahead

EV ownership in India is no longer a novelty. Lower running costs, zero tailpipe emissions, and peppy urban performance are drawing more buyers into the fold. With battery prices stabilizing and charging infrastructure expanding rapidly across metros and highways, 2026 could be the year electric mobility turns truly mainstream.