India’s electric vehicle (EV) market is charging ahead at full speed, hitting a remarkable milestone in the first half of fiscal year 2026 (H1 FY2026, April-September 2025). Retail sales of electric passenger vehicles (PVs) soared to 91,076 units, reflecting a staggering 108% year-on-year (YoY) increase from the 43,847 units sold in the same period last year. This robust performance, reported by Autocar Professional, underscores the accelerating shift toward sustainable mobility amid expanding model lineups and supportive infrastructure.The H1 FY2026 figures already represent over 84% of the entire FY2025 total of 108,609 units, signaling that the sector is on track to shatter previous records. With just 17,534 units needed to eclipse last year’s full-year sales, experts anticipate this threshold will be crossed by mid-November 2025. The momentum points to sustained demand spilling into the festive and holiday season, particularly with Diwali on October 20, buoying consumer sentiment.
Steady Climb with a Festive Hiccup
Monthly sales painted a picture of consistent upward trajectory, starting strong at 13,377 units in April and building to an all-time high of 18,369 units in August – a blistering 172% YoY jump that highlighted peak summer demand. However, September brought a temporary slowdown, with sales dipping 14% month-on-month to 15,771 units.This dip has been largely pinned on recent policy tweaks: the government’s rationalization of Goods and Services Tax (GST) on internal combustion engine (ICE) and hybrid vehicles from 28% to 18%, coupled with the withdrawal of the compensation cess. These changes effectively narrowed the pricing advantage EVs have long enjoyed, prompting some buyers to reconsider their options. Despite the blip, the EV segment’s underlying strength remains intact, fueled by an unchanged 5% GST rate on electric models and a growing array of affordable, feature-rich options.
| Month | Sales (Units) | YoY Growth |
|---|---|---|
| April 2025 | 13,377 | Double-digit |
| August 2025 | 18,369 | 172% |
| September 2025 | 15,771 | N/A (MoM decline: 14%) |
Tata Motors Posts Solid Gains, But Competition Intensifies
At the forefront of this EV revolution stands Tata Motors, which commanded a 40% market share with 34,586 units sold – a respectable 23% YoY rise from 28,216 units in H1 FY2025. The homegrown giant’s diverse portfolio, including the Punch EV, Nexon EV, Curvv EV, Harrier EV (launched in July), Tiago EV, and Tigor EV, continues to resonate with price-sensitive Indian buyers. While Tata’s dominance has slipped from a commanding 64% share last year, its steady growth since the Harrier EV debut signals resilience against rising challengers.Hot on Tata’s heels, JSW MG Motor India delivered a blockbuster performance, dispatching 26,640 units for a 29% market share – up 220% YoY from 8,329 units. The Windsor EV, offered with a Battery-as-a-Service model, was the star, driving nearly all of the 18,311-unit gain. JSW MG also ventured into premium territory with the M9 MPV and the Rs 72.49 lakh Cyberster roadster, sold through its MG Select network.
Mahindra & Mahindra (M&M) wasn’t far behind, surging 531% YoY to 19,436 units and a 21% share, propelled by the January launches of the BE 6 and XEV 9e SUVs, alongside the XUV400. Together, JSW MG and M&M have doubled their combined share to 50% from 26% in H1 FY2025, reshaping the competitive landscape.
Other players chipped in too: Hyundai Motor India leaped 819% to 3,558 units (4% share) thanks to the mid-January Creta Electric; BYD India grew 123% to 2,935 units (3% share); and Kia India jumped 875% to 1,141 units with the Carens Clavis EV.In the luxury segment, sales hit 2,375 units (up 139% YoY), led by BMW India’s 1,510 units (64% share, +232% YoY) and Mercedes-Benz’s 553 units (+32% YoY). Even Tesla made a quiet entry with 60 Model Y units in September.
A Bright Road Ahead: 175,000 Units by March?
Looking forward, the EV market is poised for a blockbuster FY2026, with projections hovering around 175,000 units by March 2026 – nearly double H1 volumes. This optimism stems from an influx of new models, including Maruti Suzuki’s e-Vitara midsize e-SUV slated for December, alongside expanding charging networks and 14 active OEMs vying for supremacy.
While the GST adjustments may temper short-term enthusiasm, the long-term narrative is one of inevitability. Cumulative sales in the first nine months of calendar year 2025 have already topped 125,052 units, surpassing all of CY2024. As India races toward its net-zero ambitions, the EV boom isn’t just a trend – it’s the new normal.With festive deals and innovative financing on the horizon, the coming months could well ignite another sales frenzy. For now, Tata holds the crown, but in this electrified arena, no lead is safe for long.
