Electric Car Market Expands as New Entrants Make Gains in H1 2026

India's electric passenger vehicle market is becoming increasingly competitive as new manufacturers gain traction alongside established automakers. The segment recorded strong growth in the first half of calendar year 2026, with new players contributing to the expansion of the country's EV market.

According to FADA Research data, electric passenger vehicle registrations increased 81.6% year-on-year to 151,050 units between January and June 2026, compared with 83,190 units during the same period last year.

Maruti, VinFast and Tesla Gain Market Share

Maruti Suzuki, VinFast and Tesla together registered 12,244 electric passenger vehicles during H1 CY26. The three companies accounted for 8.1% of the total electric passenger vehicle market and contributed around 18% of the incremental registrations during the period.

Maruti Suzuki recorded 6,386 electric vehicle registrations, giving it a 4.2% market share. VinFast followed with 5,622 units and a 3.7% share, while Tesla registered 236 vehicles during the six-month period.

The momentum for the new entrants became more visible during the second quarter. Maruti Suzuki's registrations increased from 1,460 units in Q1 to 4,926 units in Q2, while VinFast's volumes rose from 1,630 to 3,992 units. Together, the two companies increased their combined market share from 4.8% in Q1 to 10.3% in Q2.

Tata Motors Continues to Lead the EV Market

Despite the arrival of new competitors, Tata Motors retained its position as the largest player in India's electric passenger vehicle market. The company registered 57,665 EVs during H1 2026, with its market share remaining around 38%.

Mahindra & Mahindra was the biggest gainer among established manufacturers. Its electric vehicle registrations increased 146% year-on-year to 33,982 units, lifting its market share to 22.5% from 16.6% a year earlier.

Meanwhile, JSW MG Motor's registrations grew 18% to 31,741 units. However, its market share declined to 21% from 32.3% as the overall EV market expanded at a faster pace. Hyundai's market share also declined to 1.8% from 5.1%, with registrations falling 36.5% to 2,718 units.

India's EV Market Becomes More Competitive

The combined market share of the three largest manufacturers fell to 81.7% in H1 2026 from 87% a year earlier. This indicates that competition is gradually broadening as more brands introduce electric vehicles in India.

The growth of new entrants is also expanding the overall customer base rather than simply taking sales away from existing manufacturers. A wider range of products, new brands and growing distribution networks are helping electric vehicles reach more mainstream buyers.

EV Adoption Expected to Increase Further

Electric passenger vehicle registrations gained momentum as the first half progressed. Registrations grew 68% year-on-year in Q1 2026 and 93.2% in Q2. June recorded 31,823 electric passenger vehicle registrations, more than double the figure recorded in the same month last year.

India Ratings and Research expects electric passenger vehicles to account for 6-8% of total passenger vehicle sales in FY27, up from 4.4% in FY26. The growth is expected to be supported by new model launches, lower ownership costs, improving use cases and increasing consumer acceptance.

While established automakers still account for most of the market's growth, the increasing presence of new players is making India's EV sector more competitive. Product quality, pricing, charging convenience and after-sales support are likely to become increasingly important factors in determining future market share.

The figures and developments in this version are updated to the July 27, 2026 report and are based on the latest available H1 CY26 market data.