India's Electric Vehicle Market Shifts Towards Premium Segments
EVs moving at faster speed in premium lane
The Economic Times
Image: The Economic Times
India's electric vehicle (EV) market is increasingly focusing on premium models, with the share of cars priced between ₹20-30 lakh (approximately $24,000-$36,000 USD) rising to 26.4% in FY26. This trend reflects consumer readiness for higher-end features, while the demand for budget EVs remains limited, highlighting potential barriers to mass adoption.
- 01The share of EVs priced between ₹20-30 lakh rose to 26.4% in FY26 from 6.2% two years prior.
- 02Demand for luxury EVs priced above ₹40 lakh doubled, with around 5,400 units sold in FY26.
- 03Mainstream EV offerings are limited, with only three models priced below ₹10 lakh.
- 04Structural constraints hinder the entry-level EV segment due to thin margins and limited models.
- 05Near-term EV growth is expected to focus on higher price bands unless affordability improves through innovation.
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India's electric vehicle (EV) market is experiencing a significant shift towards premium models, driven by consumer preferences for better features and range. According to data from Jato Dynamics, the share of electric cars priced between ₹20-30 lakh (approximately $24,000-$36,000 USD) surged to 26.4% in FY26, up from 6.2% two years ago. Meanwhile, the segment for vehicles priced above ₹30 lakh (around $36,000 USD) also saw a substantial increase, more than doubling to 14.2%. The luxury segment, particularly for EVs priced above ₹40 lakh (approximately $48,000 USD), has seen demand double, with around 5,400 units sold in FY26. However, the entry-level EV market is struggling, with only three models available under ₹10 lakh (around $12,000 USD), and the share of EVs in this segment halving to 6.9%. Industry experts suggest that without innovative solutions to improve affordability, growth will continue to favor higher price bands, limiting broader adoption of electric vehicles in India.
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The shift towards premium EVs may limit options for budget-conscious consumers, affecting their ability to adopt electric vehicles.
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