India's EV car sales on track to cross 300,000 units in 2026: Report

India's electric car market is set to hit a new milestone. For the first time, annual sales are expected to cross 300,000 units in 2026, according to a report cited by The Economic Times.

The projection marks a sharp jump from current numbers. In 2024, India sold roughly 100,000 electric cars. The report sees that figure tripling in just two years.

What's driving the surge? More models. Automakers are rolling out affordable EVs with longer ranges. Tata Motors leads the pack, but Mahindra & Mahindra and MG Motor are also launching new electric SUVs. Hyundai and Kia have plans for India-specific EVs too.

Charging infrastructure is growing, though it still lags behind need. Companies like Tata Power and Statiq are adding fast chargers along highways and in cities. The government's Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme has helped lower upfront costs. But the report warns that subsidies alone won't sustain growth.

Price remains the biggest hurdle. Electric cars still cost 30-40% more than their petrol counterparts. Battery prices have fallen, but they remain the single most expensive component. Local battery production, spurred by the government's production-linked incentive (PLI) scheme, could bring costs down over time.

Consumer attitudes are shifting. Early adopters, mostly in metro cities like Delhi, Mumbai, and Bengaluru, are now being joined by buyers in smaller towns. The report notes that total cost of ownership, not just the sticker price, is winning people over. Lower running costs and minimal maintenance make EVs cheaper over five years.

Policy support is also evolving. Several state governments offer road tax exemptions and registration fee waivers. The central government is working on a new EV policy to replace FAME II, which ends in March 2024. The new policy is expected to focus on building domestic supply chains and boosting public charging stations.

Challenges remain. Range anxiety persists, especially for inter-city travel. Public charging stations are still sparse outside major highways. The report says India needs at least 10,000 fast chargers by 2026 to meet demand. Currently, it has about 2,000.

Grid capacity is another concern. A sudden jump in EV adoption could strain local power distribution. But experts say smart charging, where cars charge during off-peak hours, can ease the load. The government is piloting time-of-day tariffs to encourage this.

Two-wheelers, not cars, dominate India's EV story. Electric scooters and motorcycles already outsell electric cars by a wide margin. Ola Electric, Ather Energy, and Bajaj Auto are leading that charge. Still, the car segment is catching up fast.

The report projects that by 2030, electric cars could make up 15-20% of all new car sales in India. That would mean annual sales of over 1 million units. But hitting that target depends on cheaper batteries, better charging networks, and stable policy.

For now, 300,000 units in 2026 is the near-term goal. Automakers are betting big. Tata Motors alone plans to launch 10 new EVs by 2026. Mahindra will start deliveries of its Born Electric SUVs next year. MG and Citroen are also pushing into the space.

The next two years will tell if the projections hold. But the direction is clear: India's electric car market is no longer a niche. It's becoming mainstream.