India’s electric vehicle (EV) market recorded strong growth during the first half of 2026, with total sales reaching 1,541,377 units, marking a 43% year-on-year (YoY) increase compared to H1 2025, according to the latest report by JMK Research. EV penetration also rose significantly to 11.43%, up from 8% during the corresponding period last year, reflecting the country’s accelerating transition toward electric mobility.
The electric two-wheeler (E2W) segment continued to dominate the market, accounting for 62.53% of total EV sales in H1 2026, compared with 58.51% a year earlier. Growth in the segment was driven by promotional offers ahead of the PM E-Drive scheme deadline, rising fuel prices that improved the total cost of ownership for electric scooters and motorcycles, and sustained demand from fleet operators and the quick-commerce sector.
The electric three-wheeler (E3W) segment also maintained strong momentum. EV penetration in the passenger three-wheeler category increased to 73.95%, while the cargo segment reached 60.66%, despite the withdrawal of PM E-DRIVE incentives for cargo e-three-wheelers after December 2025. The continued growth indicates that market demand is increasingly supporting adoption independent of government subsidies.
The electric passenger vehicle segment posted one of the strongest performances during the period, with cumulative sales increasing 83% YoY. The growth was supported by the launch of eight new electric car models, including the Maruti Suzuki e-Vitara, Tata Harrier EV, and Mahindra XUV 3XO EV, expanding consumer choices across multiple price segments.
Meanwhile, the electric bus market recorded a 42% YoY increase in sales, rising from 2,130 units in H1 2025 to 3,021 units in H1 2026. Growth was driven by the continued rollout of the PM E-Bus Sewa and PM E-DRIVE schemes, large-scale tender awards, and increasing fleet deployments by state transport undertakings and public transport agencies.
The electric truck segment emerged as the fastest-growing category, registering a 339.57% YoY increase in sales from 139 units to 611 units. According to the report, expanding model availability, greater adoption by logistics, e-commerce, and industrial fleets, and improved operating economics contributed to the segment’s rapid growth.
On the manufacturer front, TVS Motor retained its leadership in the electric two-wheeler market with a 25.89% market share, while Ather Energy and Hero MotoCorp also strengthened their positions. In contrast, Ola Electric’s market share declined sharply from 18.68% in H1 2025 to 6.79% in H1 2026, largely due to service-related challenges and intensifying competition.
In the electric three-wheeler passenger segment, Bajaj Auto, Mahindra Last Mile Mobility, and TVS Motor expanded their market shares, while smaller manufacturers such as YC Electric and Saera Electric lost ground as customers increasingly preferred established brands.
The electric car segment continued to be led by Tata Motors and Mahindra, supported by strong demand for their electric SUV portfolios. MG Motor, however, witnessed a decline in market share amid heightened competition.
In the electric bus market, Switch Mobility/Ashok Leyland emerged as the leading manufacturer with a 27.47% market share, narrowly ahead of JBM Auto, while PMI Electro Mobility experienced a decline in market share as competition intensified.
The electric truck market also witnessed increasing competition with the entry of new manufacturers. While Montra Electric’s market share declined significantly, companies such as Energy in Motion and SANY Heavy Industries captured notable shares of the growing market.
Looking ahead, JMK Research expects India’s EV market to sustain its growth momentum during the second half of 2026. Continued implementation of government policies, expansion of charging infrastructure, and a broader pipeline of vehicle launches are expected to support further adoption.
The recently notified Delhi EV Policy 2026, which earmarks INR 15,000 crore for EV adoption, along with amendments to Bihar’s EV Policy targeting 30% EV penetration in new vehicle registrations by 2030, are expected to further strengthen the country’s electric mobility ecosystem.
The report also highlights that upcoming launches of new electric passenger vehicles, two-wheelers, and commercial vehicles, alongside the allocation of more than 4,200 electric buses under the PM E-Bus Sewa and PM E-Drive schemes in June 2026, are expected to drive continued market expansion through the remainder of the year.
