EV retail sales accelerate to 2.19 lakh units in January 2026; passenger vehicles lead with 55% growth

India’s Electric Vehicle (EV) retail momentum remained intact at the start of 2026, with total EV sales across two-wheelers, three-wheelers, passenger vehicles and commercial vehicles rising to 2,19,109 units in January 2026, compared with 1,71,248 units in January 2025 — a healthy Year-on-Year (YoY) expansion of nearly 28%, according to data released by the Federation of Automobile Dealers Associations (FADA).

The growth underscores continued consumer acceptance of electric mobility, even as monthly volumes in certain segments moderated from December’s elevated base.

Passenger vehicles drive growth

Electric Passenger Vehicle (PV) retail sales emerged as the strongest growth engine, climbing 54.75% year-on-year to 18,470 units in January, up 23.59% sequentially. Tata Motors retained leadership with 8,007 units, followed by JSW MG Motor at 4,703 units and Mahindra & Mahindra (M&M) at 3,668 units — nearly four times its sales in the year-ago period.

EV penetration in the PV segment improved to 3.6%, up from 2.5% in January 2025, reflecting rising consumer comfort with longer-range offerings and expanding model choices.

Industry sees demand-led transition

Commenting on the performance, C.S. Vigneshwar, President, FADA, said India’s EV ecosystem “continues to expand in a structurally positive manner,” adding that January reaffirmed the shift is “firmly demand-led rather than subsidy-dependent.”

He noted that retail trends across segments show customers are embracing EVs where product–market fit, economics and availability are aligned. Passenger vehicles, he said, are benefiting from wider choices and improved range confidence, while commercial vehicles are showing early signs of fleet electrification in intra-city logistics and public transport.

Three-wheelers remain the electrification leader

Electric three-wheeler (E3W) retails rose 26.43% year-on-year to 75,767 units, though volumes were 14.16% lower than December. With EV penetration at 59.6%, the segment remains India’s most electrified vehicle category.

Bajaj Auto led the E3W market with 8,510 units, followed by Mahindra Group at 7,489 units and TVS Motor Company at 2,673 units. The sustained growth reflects the segment’s strong total-cost-of-ownership advantage, particularly in last-mile mobility and cargo operations.

Two-wheelers maintain volume leadership

Electric two-wheeler (E2W) sales — the largest contributor to overall EV volumes — rose 24.77% year-on-year to 1,22,812 units, marking a 26.09% month-on-month increase. TVS Motor Co. topped the segment with 34,558 units, followed by Bajaj Auto at 25,598 units and Ather Energy at 21,999 units. Segment penetration stood at 6.6%.

New players such as River Mobility saw a 44% increase on a month-on-month basis, while rising 323.40%, as it sold 2,587 units in January 2026, in comparison to just over 600 units in the same period last year.

Ola Electric Mobility, which once used to lead in 2-wheeler sales, is a noting a continuous decline, with a steep nearly 70% decline over the span of a year. On an MoM basis, sales for the Bhavish Aggarwal-led company fell by 16.68%.

Smaller players that are categorised as "Others" to recorded a 7.36% decline in sales on a yearly basis, falling with a difference of nearly 600 units from January 2025.

Electric commercial vehicles (e-CVs), though on a smaller base, more than doubled to 2,060 units, up 115.5% year-on-year, signalling early momentum in fleet transition.

With charging infrastructure expanding and OEM line-ups deepening, FADA believes India is entering a decisive multi-year phase of pragmatic EV adoption driven by economics, ecosystem maturity and rising customer trust.