India’s electric two-wheeler market continued its upward trajectory in February 2026, reflecting a steady shift toward cleaner mobility solutions. According to data from the government’s Vahan Portal, total electric two-wheeler sales stood at 112,502 units during the month, indicating strong year-on-year growth. This performance highlights increasing consumer confidence in electric mobility, even as the broader automotive sector faces ongoing global and domestic uncertainties.
The growth in this segment is being driven by multiple structural factors. One of the primary reasons is the sustained rise in fuel prices, which has significantly increased the cost of owning and operating petrol-powered two-wheelers. In comparison, electric vehicles offer lower running and maintenance costs, making them a practical option for daily commuters. At the same time, manufacturers have broadened their product offerings, introducing models across various price segments. This has improved accessibility and allowed electric two-wheelers to cater to a more diverse customer base.
Policy support continues to play a critical role in market expansion. Government initiatives, including subsidies and financial incentives under schemes such as FAME, have reduced upfront costs and encouraged adoption. Supportive state-level policies and a favorable tax structure, including a lower GST rate of 5% on electric vehicles compared to 18% on conventional vehicles, have further strengthened the market environment. These measures have not only made EVs more affordable but have also enhanced consumer trust in the technology.
In terms of market performance, TVS Motor led the segment with sales of 31,843 units, capturing a 28.30% share. Bajaj Auto followed with 25,484 units and a 22.65% share, while Ather Energy recorded 20,807 units, accounting for 18.49% of the market. Hero MotoCorp reported sales of 12,594 units, with a market share of 11.19%, and Greaves Electric Mobility sold 4,726 units, contributing 4.2%. Collectively, these five players accounted for nearly 85% of total sales, indicating a high level of market concentration. Other manufacturers, including Ola Electric, BGauss Auto, River Mobility, E-Sprinto Green Energy, and Simple Energy, also contributed to the overall volume, albeit at smaller scales.
Beyond domestic factors, global developments are also shaping the outlook for India’s EV market. Ongoing geopolitical tensions in the Middle East have introduced volatility in global oil markets. Any escalation in conflict could lead to sharp increases in crude oil prices, which may further strengthen the economic case for electric vehicles by widening the cost gap between petrol and electric mobility. At the same time, oil supply disruptions and broader global uncertainties could indirectly impact EV supply chains, particularly in areas such as battery raw materials and logistics.
Additionally, a prolonged oil crisis may have a dual effect. While higher fuel prices typically accelerate EV adoption, inflationary pressures and economic uncertainty could affect consumer purchasing power, potentially slowing short-term demand. However, India’s increasing focus on localized manufacturing and reduced import dependence is expected to cushion some of these external shocks.
Overall, with continued policy support, technological advancements, and rising environmental awareness, India’s electric two-wheeler market is expected to maintain its growth momentum in the coming months.
