India Fast Facts

India’s EV Sales Up 74% to 3.33 Lakh in September 2026 as Adoption Increases Across Vehicle Segments

by | Nov 6, 2026 | In the news | 0 comments

New Delhi, 06 November 2026
By Anjali Batra

In September 2026, India sold 3.33 lakh electric vehicles (EVs), an increase of 74% over the same month last year. This is the highest monthly figure on record, as per retail sales data from the Federation of Automobile Dealers Associations (FADA), the national body representing vehicle dealers across India.

Segment Performance and Market Composition
The sales data point to underlying demand alongside continued incentives. Every vehicle category grew compared to the same month last year, but two-wheelers (scooters and motorcycles) made up the largest share of total EV sales.

Segment EVs sold, Sept 2026 Change on Sept 2025 EV penetration
Two-wheelers (scooters, motorcycles) 2,07,314 +88.67% 11.6%
Three-wheelers (auto-rickshaws, e-rickshaws, small goods carriers) 86,024 +40% 64.9%
Cars and SUVs 36,108 +94.56% 8.5%
Commercial vehicles (trucks, vans, buses) 4,188 +158% About 4%
All EVs 3,33,634 +74% About 13%

Growth in the sale of EVs is on a more stable base than last year. There was a GST on small petrol and diesel cars from 28% to 18% while leaving the 5% EV rate unchanged, narrowing the price gap. Two-wheelers were the main driver of EV sales. More than one in every ten scooters and motorcycles sold in India is now electric. At a penetration of 65%, three-wheelers have the highest penetration of EVs, reflecting their lower running and ownership costs. Given this high adoption, future growth will depend less on convincing new customers and more on making loans and charging points easier to access.

Passenger cars are growing steadily. About one in every twelve cars sold is now electric. Further, Delhi exempts electric cars priced up to ₹30 lakh from road tax and registration fees, a state-level tax relief.

Electrification of heavy commercial vehicles remain at an early stage of adoption, largely because heavy-duty transport requires specialised charging infrastructure, high-capacity power connections and reliable routes that support long-distance operations. However, the segment is gaining attention from both the government and industry as India seeks to decarbonise road transport and reduce its dependence on imported crude oil. Heavy-duty trucks make up about 3% of India’s vehicle fleet but produce over half of its particulate matter emissions and about 34% of road-transport carbon dioxide emissions. High upfront costs, charging infrastructure and operating requirements limit adoption. Electric commercial vehicle retail was 4,188 units in September, up 158% year on year from roughly 1,600 units.

Extension on Incentive to Electric Two-Wheelers
The central incentive for electric two-wheelers was scheduled to end on 31 July 2026. On 10 August 2026, the Ministry of Heavy Industries extended it to 31 March 2028. The incentive is ₹2,500 per kilowatt-hour (kWh) of battery capacity, capped at ₹5,000 per vehicle, compared with ₹5,000 per kWh and a ₹10,000 cap in 2024–25.

Electric two-wheeler retail sales, July-September 2026

Month (2026) Electric two-wheelers sold Change from previous month Central incentive status
July 2,04,362 Not shown Due to end on 31 July
August 1,83,204 −10.35% Extended on 10 August to 31 March 2028
September 2,07,314 +13.16% In force until 31 March 2028

Electric two-wheeler sales fell 10.35% in August and rose 13.16% in September. Total EV retail sales followed a similar pattern: they fell 8.98% in August to 2,98,448 units, then rose 11.79% in September. Electric passenger-car sales increased 9.66% between July and September period, from 32,928 to 36,108 units. Electric three-wheeler sales fell 1.18%, from 87,055 to 86,024 units.

Factors That Could Slow Momentum
FADA identifies four risks to watch in the coming quarter:

  • Price increases. Dealers identify further vehicle price increases as a key risk because they could erode the affordability gains from GST 2.0 in ICE vehicles.
  • Year-on-year comparisons. October–December 2025 was the first full quarter after GST 2.0 and included pent-up demand, making year-on-year growth harder to sustain.
  • Dealer inventory. Passenger-vehicle stock rose by five days from the end of August to about 43-45 days, above FADA’s recommended level of 21 days. Around 60% of passenger-vehicle dealers reported higher stock ahead of the festive season. These figures cover all passenger vehicles, not EVs alone.

 References

    1. Federation of Automobile Dealers Associations, “FADA Releases Sep’26 Vehicle Retail Data,” press release, 6 October 2026 (official release). https://fada.in/images/press-release/16ac46ad2e0388FADA%20Releases%20September%202026%20Vehicle%20Retail%20Data.pdf
    2. Kotak Neo (Times of India), “India hikes petrol and diesel prices by 90 paise; second fuel price hike this week,” 19 May 2026 (secondary report). https://kotakneo.com/news/market-news/india-petrol-diesel-price-hike-may-19-2026-crude-oil-west-asia/
    3. HDFC Sky, “Petrol, Diesel Prices Today, September 8, 2026” (secondary report). https://hdfcsky.com/news/petrol-diesel-prices-today-september-8-2026-check-fuel-rates-in-delhi-mumbai-kolkata-bengaluru-chennai
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    23. TERI, “Scoping Study on India’s Tyre Industry: Potential, Challenges & Recommendations,” 23 September 2026 (heavy-duty trucks: 3% of the vehicle fleet, over half of particulate matter emissions). https://teriin.org/policy-brief/scoping-study-indias-tyre-industry-potential-challenges-recommendations
    24. TERI, “Policy Brief: Roadmap for Zero Emission Truck (ZET) Skilling in India,” 5 January 2026 (trucks: 3% of road vehicles, 34% of road-transport CO2 emissions). https://teriin.org/policy-brief/policy-brief-roadmap-zero-emission-truck-zet-skilling-india
    25. WION, “Petrol, diesel prices hiked again across India! Cost increased by 90 paise per litre,” 19 May 2026 (secondary report; Delhi prices before and after the 15 May hike). https://www.wionews.com/india-news/petrol-diesel-prices-hiked-again-cost-increased-by-90-paise-per-litre-see-city-wise-prices-here-1779154597026/amp
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