New Delhi — India’s electric passenger vehicle market surged 102% year over year in the second quarter of 2026, far outpacing the broader passenger vehicle market’s 26% growth, according to a report from CyberMedia Research.
The sharp increase was driven by a wider range of electric models, improved vehicle availability and stronger total-cost-of-ownership economics, the report said.
CyberMedia Research expects electric vehicles to account for 7% to 8% of India’s passenger vehicle market by the end of 2026. Connected vehicles are projected to capture 40% to 45% of the market.
“India’s passenger vehicle market is poised for steady growth in H2 2026, supported by the festive season, a strong pipeline of new launches, and sustained demand for SUVs and feature rich vehicles,” said Amit Sharma, Senior Analyst – Smart Mobility Practice at CyberMedia Research.
New vehicle launches have expanded consumer choice, while higher gasoline prices have strengthened the running-cost advantage of EVs, encouraging some buyers to shift away from internal combustion engine vehicles.
“Electrification, safety, and digitalisation are rapidly shifting from niche features to mainstream growth drivers, and connected vehicles are leading this transformation,” said Shipra Sinha, Senior Analyst – Smart Mobility Practice at CyberMedia Research.
SUVs accounted for 58% of the market and grew 33% year over year, supported by consumer demand for higher ground clearance, road presence and advanced technology and safety features.
Connected passenger vehicles grew 60%, with penetration increasing to 43% from 34%. The growth was driven by demand for over-the-air software updates, EV software integration and wider 4G and 5G connectivity for real-time safety and diagnostics.
Passenger vehicles equipped with digital instrument clusters grew 63%, with penetration rising to 46% from 35%. Digital cockpits grew 58%, reaching 38% penetration as automakers expanded the use of large touchscreens and integrated infotainment systems.
Vehicles with touchscreen displays increased 45% year over year, while those equipped with advanced driver assistance systems grew 57%. Level 2 systems accounted for 88% of ADAS-equipped vehicles, according to the report.
India’s passenger vehicle market also remained heavily value-focused, with 98% of sales volumes concentrated in vehicles priced below Rs 30 lakh. (Source: IANS)
