New Delhi — India’s electric vehicle market is expanding rapidly, creating new opportunities for domestic manufacturing, localization and investment across the battery and electronics supply chain, according to a report by HSBC Global Investment Research.
The report said EV adoption has accelerated in recent months, initially supported by uncertainty over oil prices and increasingly by stronger consumer acceptance and network effects.
Rising sales are also strengthening confidence in India’s electric mobility ecosystem and improving the long-term outlook for electrification, HSBC said.
The next phase of growth is expected to be driven by localization, greater scale and technological advances, with rising demand for batteries, components and energy storage systems creating additional opportunities for domestic manufacturing and supply-chain development.
HSBC also highlighted the potential role of battery energy storage systems in supporting India’s renewable energy goals. Cumulative demand for such systems is projected to reach 160 GWh by fiscal 2029.
Battery imports could rise to between 95 GWh and 100 GWh by fiscal 2030 if EV penetration reaches 15% to 17% in two-wheelers, passenger vehicles and electric buses, 60% in three-wheelers and 15% in light commercial vehicles, according to the report.
India’s EV retail sales rose 52.9% from a year earlier to a record 298,448 units in August 2026, according to data from the Federation of Automobile Dealers Associations. Overall EV penetration increased to 12.3% from 9.5% a year earlier.
All four major EV segments — two-wheelers, three-wheelers, passenger vehicles and commercial vehicles — posted their highest-ever August retail sales.
Electric two-wheeler sales climbed 67.05% year over year to 183,204 units, while electric three-wheeler sales rose 25.28% to 79,846 units.
Electric commercial vehicles were the fastest-growing category, with sales nearly tripling to 4,702 units from 1,631 units in August 2025.
Electric passenger vehicle sales increased 51.89% year over year to 30,696 units. (Source: IANS)
