EV penetration races towards double digits in 2Ws

Chennai: India’s battery electric vehicle (EV) market accelerated in May, with registrations increasing both year-on-year and month-on-month amid higher fuel prices announced during the last week of the month. The uptick comes after April defied the usual post-March slowdown, underscoring sustained demand across segments. Electric two-wheelers (e2Ws) are set to reach a key milestone, with penetration likely to enter double-digit territory in the coming months.

According to Vahan data, registrations of battery electric vehicles across all segments rose to 2.64 lakh units in May 2026, up from 2.51 lakh units in April and 1.96 lakh units in May 2025.

E2ws, which account for the bulk of EV sales, grew 6% sequentially and 58% year-on-year, with volumes rising to 1.66 lakh units in May from 1.57 lakh units in April and 1.05 lakh units in the year-ago period. The segment accounted for about 63% of total EV registrations in May.

Poonam Upadhyay, Director at Crisil Ratings, said the e2w segment was benefiting from three key factors: concerns over fuel availability arising from the ongoing West Asia conflict, the significantly lower running costs of e2Ws compared with petrol vehicles, and continued uncertainty around fuel prices, which was strengthening the appeal of electric mobility.

Given the current momentum, e2W penetration is expected to reach double digits in June. After touching a record 9.8% in March before easing to 8% in April, the segment’s share in overall two-wheeler sales climbed back to around 9% in May.

Upadhyay said established manufacturers were continuing to gain ground in the e2W segment, with their extensive distribution and service networks reassuring buyers that after-sales support was no longer a key concern.

Electric three-wheelers (e3Ws) also posted healthy growth, with registrations rising to 70,150 units in May, making it the second-best month of the calendar year and well above the average monthly volume of about 65,236 units recorded over the preceding three months.

However, electric passenger vehicle (PV) volumes, including electric cars and electric utility vehicles, moderated slightly on a sequential basis. Total registrations stood at about 25,460 units in May, compared with 25,921 units in April.