India’s electric car market is expanding rapidly, but the rise of VinFast and Maruti Suzuki is beginning to reshape competition around Tata Motors and Mahindra
India’s electric car market nearly doubled in September, but the stronger takeaway from the latest sales data is how quickly the competitive landscape is changing as new manufacturers enter the market.
Electric passenger vehicle registrations rose 95 per cent year on year to 34,894 units in September from 17,924 a year earlier, according to data from the government’s Vahan portal. Electric cars accounted for 8.2 per cent of passenger vehicle registrations in September, up from 5.7 per cent a year earlier.
Sales have risen every month since March, except for a sequential decline in August. In the first nine months of 2026, electric car registrations increased 83 per cent to 248,890 units from 135,682 a year earlier.
Tata Motors retained its position as the market leader, accounting for 42.2 per cent of September sales. Mahindra followed with a 22.2 per cent share.
Together, the two companies accounted for 64.4 per cent of the market in September, broadly unchanged from 63.3 per cent a year earlier. Tata’s year-to-date share stood at 40.9 per cent after the company crossed 100,000 electric car sales for the first time since entering the segment in 2020. Mahindra’s year-to-date share rose to 23.3 per cent, up 4.6 percentage points.
More from BusinessThe bigger change is coming from newer entrants.
VinFast captured an 8.5 per cent share in September, while Maruti Suzuki took 3.1 per cent after entering the electric-car market with its e Vitara. On a year-to-date basis, VinFast and Maruti already held 5 per cent and 4.3 per cent shares respectively.
The expansion of competition is putting pressure on some established players. JSW MG Motor’s September sales grew 8.9 per cent, but its market share fell to 15 per cent as the overall market expanded faster.
BYD’s sales rose 13.5 per cent to 831 units, but its September share declined to 2.4 per cent from 4.1 per cent a year earlier. Hyundai’s year-to-date sales fell 18.3 per cent to 4,972 units, reducing its share to 2 per cent.
The growth is being supported by more models across price points, improving charging infrastructure and higher fuel costs amid geopolitical tensions. The government has also extended the PM E-DRIVE scheme to March 2028, with continued support for EV adoption and charging infrastructure.
The data suggests India’s EV market is moving beyond a phase dominated by a handful of early leaders. As more automakers launch electric models, the next stage of the market is likely to be defined increasingly by pricing, product choice, range and access to charging.
