India’s electric passenger vehicle market began 2026 on a strong note, with sales surging 51 per cent year-on-year in January to 18,059 units, even as long-time leaders Tata Motors and JSW MG Motor India saw their dominance chipped away by fast-gaining rivals led by Mahindra & Mahindra (M&M) and new entrant VinFast.
Data from the government’s Vahan registration portal showed electric car sales have been on a sustained upswing this fiscal, aided by a widening model pipeline, sharper pricing, and improving charging infrastructure.
Total registrations in the first 10 months of FY26 surged 88 per cent year-on-year to 159,983 units, underscoring the rapid pace of adoption despite a broader slowdown in parts of the auto market.
Tata Motors sustained its leadership of the electric car market, with registrations of 7,842 units in January, giving it a 43.4 per cent market share. This, however, marked a 1.14 per cent percentage point decline from a year earlier, reflecting intensifying competition. JSW MG Motor, which has emerged as Tata’s closest challenger over the past year, also saw its share slip sharply to 25.4 per cent in January from 38 per cent in the same month last year, despite absolute volumes remaining healthy at 4,591 units.
The biggest gainer during the month was M&M. Riding on strong demand for its electric SUV portfolio, the homegrown automaker nearly doubled registrations to 3,579 units in January, catapulting its market share to 19.8 per cent from just 6.2 per cent a year ago. On a fiscal year-to-date basis, M&M’s share has expanded to 21 per cent, highlighting its emergence as a serious contender in the segment.
Vietnamese electric car maker VinFast made a notable entry into the pecking order, emerging as the fourth-largest electric car seller in January with 431 units and a 2.4 per cent market share.
The company has leapfrogged Hyundai Motor India, which sold 326 electric cars during the month, primarily led by the Creta Electric and the Ioniq models.
“The shifting market shares point to a transition phase in India’s EV market, where early movers are facing pressure from newer launches with longer range, faster charging and aggressive pricing,” said Puneet Gupta, director, S&P Global Automotive.
Gupta expects competition to intensify further over the next 12 months as EV models such as the Maruti Suzuki e-Vitara and Toyota Ebella from mainstream manufacturers go on sale, and existing ones such as Tata Motors, MG, M&M, and VinFast expand their line-up in the coming months. Led by new models and improving infrastructure, S&P expects e-car penetration to reach 7 per cent in 2026 from 4.7 per cent last year.
Among the luxury and niche brands, BMW, Kia Motors, and BYD posted modest volumes, while Mercedes-Benz, Audi, and Volvo remained marginal contributors. Tesla, which has a limited market presence, recorded registrations of 37 cars during the month.
