India's electric two-wheeler market experienced significant growth in January 2026, with sales reaching 122,757 units, driven by rising fuel prices, consumer confidence, and government incentives. TVS Motor led the market with a 28.14% share, while Bajaj Auto and Ather Energy followed. Continued support and innovation suggest further market expansion.

India's electric three-wheeler (e3W) segment has gained prominence, contributing 28.73% to total EV registrations from 2017-2025, yet adoption varies regionally. Uttar Pradesh leads registrations, while West Bengal's mandated e-rickshaw registration caused a surge. Regulatory tightening in various states aims to formalize the market, enhancing EV data reliability and safety.

The Government of India has allocated Rs. 1,772 crore under the PM E-DRIVE Scheme to incentivize the purchase of 24,79,120 electric two-wheelers by offering upfront discounts. Additionally, EV manufacturers benefit from the Production Linked Incentive Scheme, promoting local component manufacturing and resulting in substantial reimbursements to OEMs.