India’s passenger car market posted strong growth in September 2026, with the total number of cars registered rising by 31.8% on a year-on-year basis to 4,22,802 units. The growth underlines the demand for passenger vehicles in the country while the electric vehicle sector posted an even sharper rise during the month.
Electric car registrations rose by 93% y-o-y to 35,866 units in September 2026. In addition, EVs posted the highest ever monthly market share, accounting for about 8.5% of total registrations.
The latest numbers show that electric vehicles are becoming an increasingly important part of India’s passenger vehicle market. Growing model variety, better charging infrastructure and rising consumer awareness are some of the factors that have contributed to the uptick in EVs’ popularity.
September also saw a closely fought contest between Tata Motors and Mahindra in the passenger EV space. The two manufacturers were separated by a mere 227 units, underscoring the growing competitiveness in India’s electric car market. Both companies have expanded their electric SUV product offerings significantly over the past couple of years.
The strong EV performance comes as manufacturers are rolling out electric SUVs in multiple segments. Customers have more choice in terms of battery capacity, range, body style, features and pricing, making the electric vehicle market much more varied than it was a few years ago.
Another positive sign for the local electric vehicle market came in the form of Tesla’s performance during September. The American EV manufacturer recorded a 304% y-o-y rise in registrations, as it looks to establish itself in India’s premium electric vehicle market.
The premium four-wheeler segment also recorded healthy growth during the month, rising by 29% y-o-y. The performance of premium vehicles along with the rapid rise in EV registrations shows that demand is growing across the board for India’s passenger vehicle market.
The 8.5% EV market share recorded in September is particularly significant as it underlines a new high for electric passenger vehicles in the country. While petrol and other powertrain technologies continue to dominate registrations, the latest figures show that EVs are steadily rising in popularity.
The September registration numbers also highlight the changing competitive landscape of India’s automotive industry. Traditional manufacturers are expanding their EV line-ups while new electric-focused companies and global brands are also making their mark in the market.
With 4.22 lakh cars registered in a single month and electric vehicles posting an all-time high, September 2026 has turned out to be a crucial month for India’s passenger vehicle market. The coming months will show if the strong performance of both the overall car market and the EV segment can be sustained.