New Delhi, August 20: India’s electric passenger vehicle (EPV) market recorded a remarkable growth of 102% year-on-year in the second quarter of 2026. This surge significantly outpaced the overall growth of the passenger vehicle (PV) market, which saw a total increase of 26%. This information was revealed in a report released on Thursday.
According to CyberMedia Research (CMR), the rapid growth is attributed to the increasing variety of electric vehicles, improved availability, and attractive total ownership costs.
The firm predicts that by the end of 2026, the share of EVs in India’s PV market will reach 7-8%, while the market share of connected vehicles is expected to rise to 40-45%.
Amit Sharma, Senior Analyst at CMR’s Smart Mobility Practice, stated, “India’s passenger vehicle market is poised for steady growth in the second half of 2026. This will be supported by the festive season, a robust pipeline of new model launches, and sustained demand for SUVs and feature-rich vehicles.”
The launch of new models by auto companies has expanded options for consumers. Additionally, high petrol prices have further highlighted the cost benefits of EVs. As a result, many internal combustion engine (ICE) vehicle buyers are shifting towards the electric segment.
Shipra Sinha, Senior Analyst at CMR’s Smart Mobility Practice, mentioned, “Electrification, safety, and digitization are rapidly becoming key drivers of mainstream growth, transitioning from features that were previously used at limited levels. Connected vehicles are leading this change.”
Sinha noted that SUVs maintained a strong lead with a 58% market share, reflecting a 33% year-on-year growth. This growth is primarily due to better ground clearance, attractive road presence, and advanced technology and safety features in SUV models.
Connected passenger vehicles experienced a 60% year-on-year increase, with market penetration rising from 34% to 43%. This growth is attributed to the expansion of over-the-air (OTA) updates, EV software integration, and real-time safety and diagnostics supported by 4G/5G infrastructure.
Passenger vehicles equipped with digital clusters saw a 63% year-on-year increase, with their share rising from 35% to 46%. Automakers have widely incorporated this feature into popular models and EVs.
Vehicles featuring digital cockpits also experienced a 58% year-on-year growth, increasing their share to 38%. The rising demand for premium and connected in-cabin experiences, larger touchscreens, and integrated infotainment systems contributed to this trend.
According to the report, vehicles with touchscreen displays saw a 45% year-on-year increase, while those equipped with Advanced Driver Assistance Systems (ADAS) recorded a 57% growth. ADAS-equipped vehicles accounted for 88% of the Level-2 system share.
India’s PV market remains primarily focused on affordable pricing, with 98% of total sales coming from vehicles priced under 3 million rupees.
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ABs
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