• Tata Motors Retains EV market leadership
• Maruti Suzuki maintained its leadership in the overall PV market
• ICE PVs captured 89% share and recorded 22% YoY increase
• PV exports surged 22% YoY in Q1 2026

New Delhi/Gurugram, 14 May:  India’s Electric Passenger Vehicle market surged 57% YoY in Q1 2026 outpacing the overall market growth of 13%, according to CyberMedia Research’s (CMR) Passenger Vehicle Market Review for Q1 2026.

EVs have transitioned from niche segment to mainstream choice, now driven by superior charging infrastructure, compelling pricing, and advanced connectivity features. The connected EV segment exploded 67% YoY, establishing the car as India’s second most important smart device after smartphones. Automotive staples like OTA updates and remote diagnostics have become purchase prerequisites, not luxury add-ons.

According to Shipra Sinha, Senior Analyst – Smart Mobility Practice, CyberMedia Research (CMR),“In Q1 2026, India’s PV market growth was powered by SUV premiumisation, rural expansion, and normalized supply. The 61% SUV share and record-high volumes signal a fundamental market rebalancing toward premium, feature-rich offerings.”

Key Technology Highlights

• Digital Cluster Adoption: Digital cluster adoption has accelerated dramatically, jumping 55% YoY with penetration nearly doubling from 35% to 48%. EVs lead this charge at 60% growth, as connected dashboards become consumer expectations.
• ADAS: Safety technology adoption surged 49% YoY, with Level 2 ADAS now standard on 91% of equipped vehicles. Regulatory momentum via Bharat NCAP and plummeting sensor costs have transformed safety to baseline expectation.
• Digital Cockpit: Immersive in-cabin experiences have become key purchase drivers. Digital cockpits grew 49% YoY, penetration climbing from 29% to 39%.

Key Market Highlights

• India’s passenger vehicle market continued to remain predominantly value-driven, with 97% of volumes concentrated in the sub-INR 30,00,000 segment.

• Within the SUV segment, Mahindra and Tata Motors maintained leadership in the mass-market category, while Toyota continued to dominate the premium SUV segment.

• Tata Motors retained leadership in the EV market with a 35% share, led by the Nexon EV.

• Mahindra emerged as one of the fastest-growing EV players, recording 92% YoY growth and securing 28% market share.

Mahindra’s electric-native platforms, including the XEV 9S, XEV 9e, and BE6, contributed 98% of its EV volumes, underscoring increasing consumer acceptance of purpose-built EV architectures.

• MG Motor and Kia also strengthened their positions amid intensifying competition.

• MG Windsor, Tata Nexon EV, and Mahindra XEV 9S together accounted for nearly 40% of total EV sales during the quarter, highlighting strong market concentration around a few high-performing models.

• Maruti Suzuki entered the top five EV rankings, supported by strong traction for the e-Vitara, while VinFast expanded its presence through its electric-only strategy.

• BYD continued to lead the premium EV segment with a 34% share, driven by the Atto 3.

Future Market Outlook

CMR estimates EVs will make up 7–8% of India’s PV market by end-2026, while connected vehicles are projected to capture 40–45% of market share.

“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. Future growth will depend on continued investments in charging infrastructure, supply-chain resilience, and balanced policy support,” noted Amit Sharma, Senior Analyst – Smart Mobility Practice, CMR.