EV registrations cross one million in H1 FY26; Sept sees marginal dip on PV slowdown

The drag was led by the e-PV category (cars and SUVs), which fell sharply to 15,100 units in September from 18,290 units in August.

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India’s electric vehicle (EV) market crossed the one million registration mark in the first half of FY26, even as monthly numbers in September showed a slight dip due to a slowdown in the passenger vehicle (e-PV) segment, Times of India reported. According to government Vahan data, total EV registrations in September stood at 1.82 lakh units — a 3 per cent decline from 1.88 lakh units in August. However, Q2 FY26 volumes rose to 5.70 lakh units compared to 5.33 lakh units in the previous quarter, reflecting steady momentum in the broader market. For H1 FY26, cumulative EV registrations reached 1.1 million units, up from 8.95 lakh units in the corresponding period last year.

e-PV saw a dip

The drag was led by the e-PV category (cars and SUVs), which fell sharply to 15,100 units in September from 18,290 units in August. Analysts attributed the dip to recent Goods and Services Tax (GST) cuts for internal combustion engine (ICE) vehicles and hybrids — a move that widened the price gap with electric models.

Under the revised structure, GST on ICE vehicles was reduced from 28 per cent to 18 per cent, and on hybrids (above 4 metres) from 43 per cent to 40 per cent. In contrast, EVs continue to attract a concessional 5 per cent GST rate.

“The GST cut on hybrids has intensified the dilemma for customers, pulling EV penetration in the passenger vehicle segment down from nearly 5 per cent to about 4 per cent,” said Puneet Gupta, Director at S&P Global Mobility. Echoing this view, Poonam Upadhyay, Director at Crisil Ratings, said, “The GST cut lured price-sensitive buyers toward ICE vehicles. This indicates that EV demand, particularly in the passenger vehicle space, remains highly price-sensitive. The industry must focus on strengthening adoption through improved charging infrastructure, affordable financing, and total cost-of-ownership awareness.”

Across segments performance

Meanwhile, the two and three-wheeler EV segments remained relatively resilient. Electric two-wheeler registrations in September stood at 1.04 lakh units, nearly unchanged from August’s 1.05 lakh units. E-three-wheeler volumes reached 61,000 units, marginally lower than 63,500 units a month earlier. Among two-wheeler manufacturers, TVS Motor retained its lead with 22,491 registrations in September, though slightly lower than August’s 24,282 units. Bajaj Auto regained the second spot with 19,554 units, a sharp jump from 11,822 units the previous month. Ather Energy followed with 18,122 units, maintaining stable volumes, while Ola Electric saw a steep decline to 13,374 units from 19,020 units. Hero MotoCorp also reported a dip with 12,740 units compared to 13,372 in August. Industry watchers say the coming months will be critical in determining whether the September slump in e-PV sales is temporary or marks the beginning of a prolonged slowdown triggered by tax policy changes.

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