NEW DELHI — India’s electric passenger vehicle market grew 57% year over year in the first quarter of 2026, far outpacing the broader passenger vehicle market, according to a new report.
CyberMedia Research said the overall passenger vehicle segment grew 13% during the quarter, while electric vehicles benefited from improved charging infrastructure, more competitive pricing and expanded connectivity features.
The report said connected EVs grew 67% year over year, while digital cluster adoption rose 55%. Penetration of digital clusters increased from 35% to 48%.
The growth of connected EVs has helped make passenger cars one of India’s most important smart devices after smartphones, the report said.
EVs led adoption of digital clusters, with 60% growth. Advanced driver assistance systems also continued to gain traction, rising 49%. Level 2 ADAS is now standard on 91% of vehicles equipped with the technology, according to the report.
The report said regulatory momentum from Bharat NCAP and falling sensor costs have helped turn safety features into a baseline consumer expectation.
CMR projected that EVs will account for 7% to 8% of India’s passenger vehicle market by the end of 2026. Connected vehicles are expected to reach a 40% to 45% market share.
Digital cockpits grew 49%, with penetration rising from 29% to 39%, as more immersive in-cabin experiences become a stronger factor in vehicle purchases.
Despite the move toward electrification and connectivity, India’s passenger vehicle market remains heavily value-driven. The report said 97% of volumes are concentrated in the sub-Rs 30 lakh segment.
“India’s automotive market is undergoing a fundamental transformation, shaped by the convergence of electrification, connectivity, and premiumisation. The continued growth of EVs and connected vehicles indicates sustained long-term structural momentum,” said Amit Sharma, senior analyst for the Smart Mobility Practice at CMR.
Sharma said future growth will depend on continued investment in charging infrastructure, supply-chain resilience and balanced policy support.
A separate recent report said Kerala led India in EV adoption with 14.1% penetration. Karnataka and Odisha also showed stronger adoption, while Maharashtra’s share declined to 9.2%. (Source: IANS)
