New Delhi: Aggressive electric vehicle (EV) plays by Mahindra & Mahindra (M&M) and Tata Motors Passenger Vehicles Ltd played a big role in EVs making up a fifth of the over 540,000 additional vehicles sold in fiscal year 2026, data from the Federation of Automobile Dealers Associations (Fada) showed. That number was 8% in the previous fiscal year.
The two companies together accounted for 61% of India’s electric car market in FY26, helping them power past second-placed Hyundai Motor in India’s passenger vehicle (PV) pecking order (Maruti Suzuki is No. 1).
According to data from Fada, overall car retail sales grew 13% to 4.7 million units in FY26, while EV sales increased 84% to 199,923 units in the same period, contributing 4% to the overall market.
EVs have also contributed handsomely to the top carmakers’ incremental growth last fiscal.
Fada data showed that M&M’s overall sales jumped 22% year-on-year (y-o-y) in FY26 to 631,638 units, within which EVs have grown at an outsized 407% y-o-y to 42,721 units, and contributed 30% to the company’s incremental sales growth.
Meanwhile, Tata Motors PV’s retail sales rose 14% y-o-y to 613,513 units in FY26, even as its EVs showed a growth rate of 36% y-o-y to 78,811 units. Significantly, EVs contributed about 26% to the company’s incremental growth.
Strip out EVs, and growth rates drop to 17% and 12% for M&M and Tata Motors PV, respectively.
Hyundai Motor, which ended the fiscal year below No. 2 (at No. 4) for the first time in 17 years, grew at just 3% to 578,337 units in FY26, even as its EV sales grew at a healthy 137.6% to 5,885 units. However, Hyundai’s EVs contributed a lower 14% to its incremental sales, compared to the other two companies.
To be sure, EVs are not the sole driver of growth—M&M’s strong SUV portfolio, for instance, continues to underpin its performance. But electrification is increasingly amplifying gains for early movers.
“Over the past six years, we have built the widest portfolio of electric vehicles across every major body style and price point, from hatchbacks to high SUVs, enabling the democratization of EVs,” Vivek Srivatsa, chief commercial officer, Tata Passenger Electric Mobility Ltd, said.
"EVs contribute 14-15% to our passenger vehicle portfolio, significantly ahead of the industry average of ~4%, with customers driving more, travelling farther, and increasingly choosing EVs as their primary car, reflecting growing trust in the technology,” he added.
M&M, Hyundai India and Maruti Suzuki did not respond to queries seeking comment on their EV sales and plans.
Strategic choice
Subhabrata Sengupta, a partner at Avalon Consulting, noted that EV sales act as incremental sales boosters for some manufacturers, but decisions on whether to go big on the technology remain a strategic choice.
“It is a growing segment. Whether you play there or not is always a strategic choice. Toyota grew around 20% without an EV,” Sengupta said.
So far, Maruti and Hyundai have not yet gone big on the segment. Maruti, which sold 1.86 million cars in FY26 at a growth rate of 11.4%, started selling EVs in India only in February, with just over 1,400 units registered. As of now, it sells just one EV, the eVitara.
Hyundai on the other hand, sells two EVs in India — Creta EV and Ioniq — even as it discontinued the Kona EV last June for want of demand.
Comparatively, M&M and Tata Motors have close to half a dozen EVs each. Last fiscal, Tata Motors PV launched the Harrier EV and the face-lift of Punch EV. And M&M launched two electric models — XEV 9S and 3XO EV.
However, both Maruti and Hyundai have big plans. Maruti Suzuki will inaugurate a 250,000-unit production line in FY27 at its Hansalpur facility in Gujarat, which is expected to be dedicated to EVs. The company expects 15% of its sales to come from EVs by FY31 as it expands its EV portfolio.
“There were some initial delays but now the ramp-up is progressing steadily,” Rahul Bharti, senior executive officer-corporate affairs at Maruti Suzuki, told Mint earlier on scaling up EV production.
Hyundai, meanwhile, has lined up five models for launch by 2030 in a bid to capture greater market share.
Growth oasis
The trend also stands out against a slowing global backdrop. EV sales in key markets such as the US and China have seen volatility amid shifting policy support, according to Benchmark Mineral Intelligence, making India one of the more resilient growth markets for the technology.
Global EV sales declined year-on-year in January and February as the US and Chinese markets struggled due to policy changes, according to Benchmark Mineral Intelligence (BMI).
At the same time, even though EVs are higher-priced than their petrol/diesel counterparts, they would act as a drag on profitability for the time being, with Sengupta explaining that currently profitability margins are lower in EVs than in ICE.
"EV has scope for improvements both due to scale and engineering,” Sengupta said.” They have opportunities in platforms, cheaper high voltage architecture, and low cost motors with less or no rare earths, among others.”