• ICE PVs captured 87% share and recorded 35% YoY increase
• PV exports surged 9% YoY in Q2 2026
• Maruti Suzuki maintained its leadership in the overall PV market
• Tata Motors continued to lead the EV market

New Delhi/Gurugram, 20 August 2026.  According to CyberMedia Research’s (CMR) latest CMR Passenger Vehicle Market Review for Q2 2026, India’s Electric Passenger Vehicle (EPV) market delivered a standout performance in Q2 2026, surging 102% year-on-year (YoY) and significantly outpacing the broader passenger vehicle market’s 26% growth.

The sharp acceleration was powered by an expanded product portfolio, improved vehicle availability, and compelling total-cost-of-ownership economics. New model launches from OEMs widened consumer choice, while elevated petrol prices amplified the running-cost advantage of EVs — together pulling a growing number of traditional ICE buyers into the electric segment and propelling EV sales well ahead of overall market growth.

During the quarter, the market saw several key EV launches, including Tata’s Sierra EV, Toyota‘s first battery-electric vehicle, the Urban Cruiser eBella, and VinFast‘s VF MPV 7, whose fleet-spec variant, the Limo Green, now powers Green SM — VinFast’s newly launched all-electric cab and ride-hailing service in India.

“India’s passenger vehicle market is undergoing a structural pivot,” said Shipra Sinha, Senior Analyst – Smart Mobility Practice, CyberMedia Research (CMR). “Electrification, safety, and digitalization are rapidly shifting from niche features to mainstream growth drivers, and connected vehicles are leading this transformation. SUVs captured a commanding 58% market share, rising 33% YoY, driven by superior ground clearance, aspirational road presence, and the concentration of advanced technology and safety innovations in SUV lineups.”

Key Technology Highlights

• Telematics Movement: Connected PVs grew 60% YoY, with penetration rising from 34% to 43%, driven by demand for OTA updates, EV software integration, and expanding 4G/5G infrastructure for real-time safety and diagnostics.

• Digital Cluster Adoption: PVs with digital clusters grew 63% YoY, with penetration up from 35% to 46%, as OEMs pushed the feature into mass-market trims and EV- and SUV-led launches made digital displays central to the cabin.

• Digital Cockpit: PVs with digital cockpits grew 58% YoY, with penetration rising from 30% to 38%, on rising demand for premium, connected in-cabin experiences and wider adoption of large touchscreens and integrated infotainment.

• Infotainment Display: PVs with touchscreen displays grew 45% YoY, with 22% now featuring screens larger than 10 inches, as buyers sought smartphone-like infotainment, seamless device integration, and connected navigation.

• ADAS: PVs equipped with ADAS grew 57% YoY, with Level 2 systems accounting for 88% of equipped vehicles, as automakers cascaded active safety suites into mid-segment models and used Level 2 packages as a key differentiator.

Key Market Highlights

• India’s PV market continued to remain predominantly value-driven, with 98% of volumes concentrated in the sub-INR 30,00,000 segment
• Tata Motors retained leadership in the EV market with a 38% share and recorded a significant 130% YoY growth, led by the Nexon EV.
• Within the SUV segment, Mahindra and Maruti Suzuki held the top two spots in <INR 30,00,000 segment, while Toyota continued to dominate the premium segment (INR >30,00,000).

• Mahindra grew 66% YoY and secured 24% market share.
• MG Motor also recorded notable growth of 42% YoY capturing 19% share.
• MG Windsor, Mahindra XEV 9S and Tata Nexon EV were the top three EV models together accounting for nearly 39% of total EV sales during the quarter.
• Maruti Suzuki held fourth place with 7% market share; VinFast expanded to 4%.
• BYD held the sixth spot with its Atto 3model contributing 39% share.

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 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. As SUVs, EVs, and technology-led models continue to outperform the broader market, OEMs that strike the right balance between product differentiation, competitive pricing, digital innovation, and an elevated ownership experience will be best positioned to capture growth,” noted Amit Sharma, Senior Analyst – Smart Mobility Practice, CyberMedia Research (CMR).