- India's EV sales rose to 6.4% of passenger vehicles in May, up from 4% in FY26
- Electric two-wheelers accounted for 8.9% of sales in May, up from 6.5% last year
- Tata Motors' EV sales grew 85% year-on-year with bookings rising 2.5 times recently
India's electric vehicle market gained fresh momentum in May as higher fuel prices pushed more buyers towards battery-powered alternatives, according to reports by Nomura and HSBC.
According to Nomura, EV sales in May reached 6.4% of passenger vehicle sales, compared with 4% in FY26, while electric two-wheelers accounted for 8.9% of sales, up from around 6.5% last year. The brokerage said, "demand sentiment shifted more towards EVs" and added that "EV demand continues to gain traction".
HSBC struck a similar note, saying, "The recent hikes in fuel pump prices has led to customer demand to incline towards purchasing an electric vehicle." The brokerage estimated electric two-wheeler penetration at 9.3% and electric passenger vehicle penetration at 6.6% in May.
EV sales in India have gathered momentum
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Among carmakers, Tata Motors continued to benefit from the trend. The company reported an 85% year-on-year increase in EV sales, while EV bookings have grown 2.5 times over the past two months. According to Nomura, Tata Motors is seeing particularly strong demand in the sub-Rs 15 lakh segment and plans to increase EV production capacity from 10,000 units a month to 15,000 units.
The shift was equally visible in the two-wheeler market. TVS Motor remained the market leader with around 42,000 electric scooter registrations in May, followed by Bajaj Auto and Ather Energy. Ather's sales more than doubled year-on-year, helping it secure a market share of 16.5%, according to Nomura.
While rising commodity costs remain a concern for manufacturers, both brokerages believe electrification is gathering pace. Nomura said it believes "EVs are at an inflection point", supported by favourable policy measures and growing consumer acceptance.
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