New Delhi, Aug 20: India’s electric passenger vehicle market recorded a sharp 102 per cent year-on-year growth in the second quarter of 2026, significantly ahead of the 26 per cent growth recorded by the overall passenger vehicle market, according to a report by CyberMedia Research (CMR).
The strong performance reflects growing consumer interest in electric mobility, supported by a wider range of models, better vehicle availability and the potential savings offered by EVs over their lifetime.
Higher petrol prices have also encouraged some consumers to consider electric vehicles as an alternative, particularly as new launches have given buyers more choices across different price segments.
CMR expects electric vehicles to account for around 7–8 per cent of India’s passenger vehicle market by the end of 2026, signalling further room for growth as manufacturers expand their electric portfolios.
The broader passenger vehicle market is also expected to maintain steady momentum in the second half of the year, supported by the festive season, new model launches and continued demand for SUVs and technology-rich vehicles.
SUVs remained the most popular body style, accounting for 58 per cent of the market and growing 33 per cent year-on-year. Their combination of space, higher ground clearance, styling and advanced safety features continues to attract Indian consumers.
The shift towards smarter vehicles is also becoming increasingly visible. Connected passenger vehicles grew 60 per cent year-on-year, taking their market penetration from 34 per cent to 43 per cent. Features such as over-the-air software updates, real-time diagnostics and connected safety systems are becoming more common.
Digital technology is spreading rapidly inside vehicles as well. Passenger vehicles equipped with digital instrument clusters grew 63 per cent, while digital cockpit adoption increased 58 per cent. Touchscreen-equipped vehicles also recorded 45 per cent growth.
Safety technology is gaining greater importance, with vehicles equipped with Advanced Driver Assistance Systems (ADAS) increasing 57 per cent year-on-year. Level 2 systems accounted for the majority of ADAS-equipped vehicles.
The latest trends suggest that India’s automobile market is moving beyond traditional considerations such as price and fuel efficiency. Consumers are increasingly looking for vehicles that combine electrification, safety, connectivity and advanced digital features.
With new electric models entering the market and charging and digital infrastructure continuing to develop, the coming months could bring further momentum to India’s shift towards electric and connected mobility.
The growth of EVs and technology-rich vehicles also presents an opportunity for automakers to make advanced features more accessible to mainstream buyers, potentially accelerating the transformation of India’s passenger vehicle market.