FY2026 has emerged as a landmark year for India’s electric vehicle industry with total EV retail sales crossing 2.45 million units, showing a 25% year-on-year growth as compared to 1.97 million units in FY2025. This surge was primarily driven by the electric two-wheeler (e-2W) segment, which has dominated India’s EV landscape.
According to Vahan portal data (April 1, 2026), 1.40 million electric two-wheelers were sold during FY2026, showing a growth of 22% from 1.15 million units in FY2025. This performance gave electric two-wheelers a 57% share of India’s total EV market, cementing their position as the backbone of India’s electric mobility transition.
Despite the price gap between petrol and electric two-wheelers narrowing after the GST transition in September 2025, demand remains resilient. The penetration of electric two-wheelers in India’s total two-wheeler market increased to 6.54% in FY2026 from 6.09% in FY2025. Rising petrol prices, low operating costs and increasing model availability continued to attract buyers.
The segment also benefited from growing demand in last-mile delivery, e-commerce and fleet operations, where low total cost of ownership (TCO) makes EVs particularly attractive. In particular, fleet operators are accelerating the adoption of electric vehicles due to their operational efficiency.
Top Electric Two-Wheeler OEMs in FY2026
The Indian e-2W market remained concentrated, with five manufacturers accounting for 84% of total sales. Among them:
TVS Motor took the lead
TVS Motor emerged as the new market leader in FY26, selling 341,471 units, up 44% year-on-year and capturing 24% market share. Strong demand for the iCube and Orbiter models along with the introduction of Battery-as-a-Service (BaaS) helped drive growth.
Bajaj Auto reaches number 2
Bajaj Auto took second position with 25% YoY growth to 289,323 units and 21% market share. The launch of Chetak C2501 contributed to its continued growth.
Ather Energy records fastest growth
Ather Energy recorded 239,124 units, marking 82% year-on-year growth and 17% market share. The Rizta family of scooters, which accounted for about 70% of sales, played a major role in the company’s expansion.
Ola Electric is seeing a huge decline
Former market leader Ola Electric experienced a significant decline, selling 164,294 units, down 52% year-on-year, reducing its market share to 12% and slipping to fourth place.
Hero MotoCorp’s Vida surge
Hero MotoCorp’s Vida brand posted 144,313 units, representing 196% year-on-year growth and capturing 10% market share. Strong demand for Vida VX2 drove this growth.
Greaves maintains electric mobility position
Greaves Electric Mobility ranked sixth with 61,651 units, up 51% year-on-year, supported by new product launches and growing demand.
Japanese OEMs are struggling to gain popularity
Japanese manufacturers Honda, Suzuki and Yamaha together sold only 4,746 electric scooters in FY26, highlighting the dominance of Indian manufacturers. Late entry, limited availability, and premium pricing contributed to its modest adoption.
Growth drivers in FY2026
Several factors accelerated the adoption of electric two-wheelers:
PM e-Drive scheme incentives, rising petrol prices, expansion of charging infrastructure, growing fleet and delivery demand, wide product portfolio across all price segments, low operating and maintenance costs
Electric two-wheelers typically cost ₹30 per kilometre, while petrol vehicles cost ₹2 per kilometre, making them increasingly attractive for both personal and business use.
FY2027 Outlook
While FY2026 has set a new benchmark, FY2027 growth will depend on:
Extension or withdrawal of government incentives, global oil price trends, new product launches, expansion into tier-2 and tier-3 markets.
Despite the uncertainties, strong fundamentals of low ownership costs, environmental benefits and growing consumer awareness suggest continued growth for India’s electric two-wheeler market.
India’s E-2W industry has demonstrated flexibility and momentum and firmly established electric mobility as a mainstream transportation option in the coming years.
