In top gear: Electric passenger vehicle sales may cross 3 lakhs in 2026

CHENNAI: India’s electric passenger vehicle (EPV) market is expected to maintain strong growth momentum in 2026, with annual sales likely to exceed 3 lakh units for the first time, compared with just under 2 lakh last year. So far in 2026, registrations are closing in on the 1.5 lakh mark, according to Vahan data, reflecting the sales momentum. The growth will be supported by new model launches, aggressive sales strategies by automakers, and continued improvements in charging infrastructure, which are expected to accelerate consumer adoption of electric vehicles.Average monthly EPV registrations have risen to around 27,000 units over the past four months, well above last year’s levels. With the second half of the year typically benefiting from festive demand and a slew of new launches, annual EPV sales are expected to cross the 3 lakh-unit mark. Frost & Sullivan projects EPV sales to go past 3 lakh units in 2026 under its optimistic scenario. Crisil has pointed out three structural factors driving EPV growth. First, the number of models has doubled to around 20 over the past two fiscals and is expected to exceed 35 by next fiscal, led by new launches in the sub-Rs15 lakh segment. Second, technological advances are easing range anxiety, with premium EVs offering 500–700 km per charge and mid-range models delivering 300–450 km. Third, longer battery warranties of 8–10 years and ownership models such as Battery-as-a-Service are reducing concerns over upfront costs and longterm reliability. The rating agency also said rising fuel prices triggered by the West Asia conflict have improved the cost competitiveness of electric vehicles, with the running cost of internal combustion engine (ICE) vehicles rising 7–8% in May, thereby widening EVs’ total cost of ownership advantage. Frost & Sullivan said continued fuel price volatility stemming from the USIran conflict could further accelerate India’s shift towards electric mobility.Get the latest business news and top stories. Download the TOI App.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.