If you've been following the news lately, electric vehicles (EVs) seem to be everywhere. Delhi's proposed EV policy, which offers financial incentives to switch to EVs, revived the debate around electrification. Worries over the impact of ethanol-blended petrol on traditional ICE engines have had many prospective buyers taking another look at EVs.

India registered more than 25 lakh electric vehicles in FY26, taking overall EV penetration to 8.5% from 7.7% a year earlier. EV penetration in passenger vehicles rose to 4.4% from 2.5%, while electric goods vehicle registrations surged 172%.

With more EV models to choose from, buyers are comparing driving range, ownership costs and after-sales service. Businesses are expanding their electric fleets after finding that lower running costs can offset the higher purchase cost.

Harshvardhan Sharma, auto tech and innovation expert at Nomura Research, said, "It will not be a zero-sum game on pricing. Companies are trying to stand out by offering better value, not just lower prices."

In this edition of Chart of the Week, we look at how EV adoption is rising across different segments, why buyer preferences are changing and how businesses are reshaping the market.

Wider choice, reliable after-sales service drive competition

A good driving range and fast charging no longer suffice for buyers considering an EV. They want an affordable car that's reliable to own, and backed by dependable after-sales support.

India's growing appetite for SUVs worked in Mahindra's favour, in the EV segment. The BE 6 and XEV 9e helped lift its share in the passenger EV market by over 13 percentage points to 21.4% as buyers responded to purpose-built electric SUVs with longer driving range, faster charging and premium features. 

MG tackled one of the biggest hurdles to buying an EV: the upfront price. Its Battery-as-a-Service model lets buyers pay a monthly subscription for the battery instead of purchasing it upfront.

While retaining its top position, Tata Motors saw its share of the passenger EV market fall by over 14 percentage points to just under 39%. Complaints around Tata's after-sales service have become a recurring topic across owner forums and social media.

A Reddit user recently called his Tata Nexon EV ownership a "nightmare", alleging repeated battery issues, long service delays and poor workshop support. New EV buyers seem to have decided that the hassle is not worth it, even if it means paying a little more elsewhere.

In two-wheelers, established manufacturers have chipped away the early lead held by newer EV-first brands. "Once legacy players enter, early movers start losing market share. That’s always baked into the industry," said VG Ramakrishnan, Managing Partner at Avanteum Advisors LLP.

TVS Motor and Bajaj Auto leveraged dealer and service networks they had spent decades building, giving buyers confidence that issues could be raised and addressed easily. Hero MotoCorp also broadened its Vida portfolio, giving buyers another established brand to consider.

Ather Energy, a rarity in the industry as a successful newcomer, widened its appeal with the family-focused Rizta instead of relying on premium urban commuters. The model has helped the company tap into the family scooter segment. It also expanded its retail and service network, making its scooters easier to buy and service.

Ola Electric struggled to keep pace with its own expansion. Customer complaints around servicing, repair delays and spare part availability were followed by a fall of over 18 percentage points in its market share to 11.5%.

Promise of cost savings drive surging commercial EV adoption

Fuel is one of the largest operating costs for businesses that keep vehicles on the road all day. Lower fuel and maintenance costs help operators recover the higher purchase cost over time. Electric goods vehicle registrations grew 172% in FY26, while EV penetration more than doubled to 1.4%.

Unlike passenger vehicles, most commercial fleets run fixed routes and return to the same depot every day, allowing operators to charge vehicles overnight. Last-mile delivery fleets travel relatively shorter distances with predictable schedules, making battery range less of a limitation than it is for someone driving between cities. The government's PM E-DRIVE scheme has also expanded incentives for electric trucks and buses, making the switch more affordable.

BigBasket estimates its transition to EVs has been brought forward by six to nine months as delivery partners look to reduce fuel cost volatility and improve earnings. Nearly half of its active last-mile fleet is already electric, and aims to reach 70% over the next 12 to 24 months.

Flipkart's EV Assist platform helps delivery partners access EV rentals, financing, charging and servicing through a single platform. The company estimates riders can reduce fuel costs by 70-80%, improving their earnings by another 15-20%.

Passenger and cargo three-wheelers remain India's most electrified vehicle segments, with EV penetration reaching 63% and 52%, respectively, in FY26. For many drivers, electric three-wheelers have moved from being an alternative to becoming the default choice.

Mahindra Last Mile Mobility retained its leadership in passenger electric three-wheelers, while Bajaj Auto and YC Electric remained among the biggest players. Piaggio Vehicles recently partnered with RiseWise Capital to offer 100% financing on replacement batteries after three to four years of ownership, helping drivers avoid a large one-time battery replacement expense.

Commercial EV makers respond to rising demand

Automakers are responding to rising fleet demand with more electric buses and trucks. Switch Mobility (Ashok Leyland), PMI Electro Mobility, JBM Auto and Olectra Greentech each held about 20% market share in FY26.

Montra Electric's lead in the electric truck market is under pressure as Energy In Motion and Sany Heavy Industries rapidly gain market share. The recent entry of Olectra and Tata Motors is making the segment even more competitive.

Switch Mobility recently won India's largest order for 350 refrigerated electric trucks from transportation company Celcius Logistics. Ashok Leyland has started delivering 55-tonne electric trucks to ASAT Logistics for cement transportation. Tata Motors also secured more than 3,400 electric commercial vehicle orders, including nearly 900 electric trucks and about 500 buses. The orders came from companies across e-commerce, FMCG, mining, steel and airport operations.

Subsidies helped kickstart India's EV market, but the next growth phase will be driven by companies that solve practical ownership challenges. Buyers want wider choice, better features and reliable after-sales support, while businesses are looking for lower operating costs. The companies that address these expectations will be the winners.