India’s EV Market Sees Mixed September, Strong Growth in H1 FY26

India’s electric vehicle (EV) market witnessed a mixed performance in September 2025, with monthly registrations dipping slightly but quarterly and half-year totals showing healthy growth, according to the latest Vahan data.

Monthly and Quarterly EV Registrations

Total battery-powered vehicle registrations in September 2025 stood at approximately 182,000 units, marking a 3 percent decline from the 188,000 units recorded in August 2025. 

Despite this marginal monthly dip, the second quarter of fiscal year 2026 (Q2 FY26) saw improved volumes, with 570,000 units registered compared to 533,000 units in Q1 FY26. Half-year EV registrations crossed the one million mark, reaching about 1.1 million units in H1 FY26, significantly up from 895,000 units during the same period last year.

Passenger Vehicle Segment Faces Slowdown

The decline in monthly numbers was largely attributed to a sharp slowdown in the passenger electric vehicle  (e-PV) segment, which includes cars and SUVs. Registrations in this category dropped to 15,100 units in September from 18,290 units in August.

Analysts linked this slowdown to recent government tax policy changes. GST rates for internal combustion engine (ICE) vehicles were slashed from 28 percent to 18 percent, and hybrid vehicles (over 4 meters in length) saw GST reductions from 43 percent to 40 percent. EVs, however, continue to be taxed at a lower but unchanged GST rate of 5 percent, inadvertently widening the price gap and affecting competitiveness.

Dinesh Arjun, Cofounder and CEO, Raptee.Hv, commented, “With recent changes, the GST burden on certain ICE vehicles (passenger electric segment)  has reduced, narrowing the affordability gap and leading some price-sensitive customers to defer their EV purchase decisions. However, we believe this is a temporary phase, and the long-term fundamentals for EV adoption remain strong.”

Notably, September is just before the festive season ahead, which may also have contributed to the slowdown in the passenger segment.

“September is traditionally a softer month for auto sales ahead of the festive season, and EVs being a newer category tend to feel this seasonality more sharply.” 

Unlike passenger e-cars, electric two-wheelers and three-wheelers remained largely steady. Electric two-wheeler registrations recorded 104,000 units in September, nearly flat compared to 105,000 units in August. Electric three-wheelers registered 61,000 units, a slight dip from 63,500 units the previous month.

Leading Manufacturers and Market Shares

In the two-wheeler segment, TVS Motor continued to lead with 22,500 registrations, down slightly from 24,300 units in August. Bajaj Auto rebounded strongly to the second spot, posting 19,500+ units, up from about 11,800 units. Ather Energy remained close with 18,100 units, a marginal increase, while Ola Electric experienced a significant fall to less than 13,400 units from 19,000. Hero MotoCorp also saw a moderate decline, with 12,740 registrations compared to roughly 13,400 the prior month.