Electric Vehicles Propel 20% Growth in India's Car Sales Amid Global Decline
Electric surge: EVs drive almost 20% of India's new car sales growth, bucking global decline
Mint
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Electric vehicles (EVs) accounted for nearly 20% of the growth in India's passenger vehicle sales in FY26, helping Mahindra and Tata Motors surpass Hyundai to become the second and third largest carmakers, respectively. Overall car sales increased by 13% to 4.7 million units, with EVs contributing significantly despite their small market share.
- 01EVs contributed nearly 20% to the growth of India's car sales in FY26.
- 02Mahindra and Tata Motors surpassed Hyundai in sales, becoming the second and third largest carmakers.
- 03Total car sales in India grew by 13% to 4.7 million units in FY26.
- 04Mahindra's EV sales surged significantly, contributing 30% to its overall growth.
- 05Maruti Suzuki plans to increase its EV offerings, aiming for 15% of sales from EVs by FY31.
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In FY26, electric vehicles (EVs) played a crucial role in India's passenger vehicle sales, contributing nearly 20% of the incremental growth. Total car sales rose by 13% to 4.7 million units, with over 540,000 additional vehicles sold compared to the previous year. Mahindra and Mahindra Ltd and Tata Motors Passenger Vehicles Ltd outperformed Hyundai Motor India, securing the second and third positions in the market, respectively. Mahindra's sales increased to 631,638 cars, with EV sales jumping to 42,721 units, while Tata Motors saw a rise to 613,513 units, with EV sales reaching 78,811 units. Despite EVs representing only about 4% of the overall market, their growth indicates a strong demand in India, contrasting with declining global sales due to policy changes in major markets like the US and China. Maruti Suzuki, India's leading carmaker, has just begun selling EVs and plans to ramp up production significantly, expecting 15% of its sales to come from EVs by FY31. The competitive landscape is shifting as domestic manufacturers expand their EV portfolios amidst a global slowdown.
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The growth of electric vehicles in India could lead to more affordable EV options and increased competition in the automotive market, benefiting consumers.
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