India’s electric vehicle (EV) market is expected to surpass 200,000 units in FY26, maintaining a penetration of around 4–5 percent of total passenger vehicle sales, according to Shailesh Chandra, managing director of the country’s largest-selling EV maker, Tata Motors.
Chandra noted that the first half of FY26 has seen steady growth, reflecting a consolidation phase following several years of rapid EV expansion, with adoption strongest in mid and premium segments.
India’s overall passenger vehicle market is expected to reach 4.5–4.6 million units in FY26, implying annual EV volumes of roughly 180,000–230,000 units. EV penetration is uneven across price bands:
Cars above ₹12 lakh: ~10% penetration, ~160,000 units annually
Sub-₹12 lakh segment: ~1.6% penetration, ~50,000 units annually
Chandra highlighted that electrifying the mass-market sub-₹12 lakh segment is crucial for mainstream adoption. Based on FY26 projections, EV sales would represent 20–30% year-on-year growth compared to FY25 volumes of 150,000–160,000 units.
The next phase of growth depends on addressing barriers in the entry segment, including real-world range, charging speed, and battery-life concerns. Expanding charging infrastructure is key, with India now hosting around 30,000 public charging points and over 200,000 home chargers installed nationwide, up from just 500 public chargers in 2020.
Tata Motors is approaching parity between its EV and internal combustion engine businesses and is prepared to accept near-term margin sacrifices to support long-term electrification, Shailesh Chandra, managing director of Tata Motors. He added that the entry of major carmakers into the EV segment is expected to expand the overall market.
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