Auto firms pivot to premium and EV segments as India sales surge

Component makers target premium and EV growth

CEAT has increased its fitment of tires in premium vehicles and electric vehicles among original equipment manufacturers. On 20 October, the company warned that demand might moderate in the third quarter due to a higher base, potential El Niño effects, and a recent repo rate hike. Growth in the farm segment has also slowed following a monsoon deficit.

India is leveraging global alliances, such as through Jaguar Land Rover, to protect premium margins while scaling mass-market electric vehicles. The country also views regulatory caps on Chinese electric vehicle imports in the European Union as an opportunity. Meanwhile, the electric vehicle transition is set to reshape global fuel demand, though India’s internal combustion engine fleet is expected to grow.

Market leaders and EV portfolio expansion

Tata Motors Passenger Vehicles held a market share of over 42 percent in September 2026, making it the largest electric vehicle manufacturer in India. Mahindra followed with a 22.2 percent market share in the electric vehicle segment during the same period.

JSW MG Motor is the third largest electric vehicle car manufacturer in India, holding approximately 15 percent of the market. The company derives 75 percent to 80 percent of its total volume from electric vehicles, with its portfolio consisting of the Comet, the Windsor, and the newly introduced Hector Tomahawk. While the top eight cities account for about half of its electric vehicle volumes, the other half comes from Tier-II and Tier-III markets.

Auto tech funding and IPO activity in 2026

Indian auto tech startups raised $1.3 billion in 2026. This total is a decrease from the $2.1 billion raised by the sector during 2025, according to CNBC TV18.

Major funding rounds this year include Rapido, which raised $240 million in a Series F round in May, and Simple Energy, which secured $180 million in a Series C round in September. Rideriver also raised $102 million in a Series C round.

Euler Motors in Delhi raised $48 million in a Series E round, while Ecofy in Mumbai raised $55 million in a Series B round. Ather Energy is currently scaling up its operations to meet the demand of the electric vehicle market, said Swapnil Jain on October 17.

The public market saw three initial public offerings (IPOs) in the auto tech sector between January 1 and October 15, 2026, compared to six in 2025. Sotefin recorded the highest market capitalization at $35 million, followed by Victory EV India at $11 million and AutoFurnish at $6 million.

Infrastructure partnerships and ecosystem scaling

Jio-bp and Kia India entered a partnership on October 16 to expand electric vehicle charging access to more than 23,500 points across India. Jio-bp also partnered with Vertelo on October 14 to provide electric vehicle charging for commercial fleets.

Lohum announced plans on October 15 to establish lithium refining capacity for electric vehicle batteries in India. Meanwhile, BYD India expanded its sales and service network by opening its 49th showroom in Pune on October 14.

August and September registration data

Nearly 3 lakh electric vehicles were registered across India in August 2026, according to Business Outreach. This total included 1,83,204 electric two-wheelers, 79,846 electric three-wheelers, and 30,418 electric passenger vehicles.

Electric two-wheeler registrations in August 2026 were 67.05 percent higher than in August 2025, though the figure was 10.35 percent lower than the 2,04,362 units registered in July 2026. TVS Motor led this segment with 48,938 registrations, capturing approximately 26.7 percent of the market, compared to 25,646 units in August 2025. Bajaj Auto registered 41,114 units, representing 22.4 percent of the market and a 235.7 percent increase from 12,246 units in August 2025.

Electric three-wheelers comprised 65.3 percent of the total three-wheeler market in August 2026. In the passenger vehicle segment, Tata Motors led with 13,070 registrations in August 2026.

Business Outreach reported 30,418 electric passenger vehicle registrations in August 2026, which accounted for 7.6 percent of total retail car sales and was 51 percent higher than in August 2025. FADA data indicated that passenger vehicle sales grew by 17.63 percent in September 2026 compared to the 30,696 units sold in August 2026.

India leads global BEV sales share

India has maintained a higher share of fully electric new car sales than the United States for six consecutive months since April 2026, according to Ember. India is among 15 countries, including Brazil, Italy, Malaysia, and New Zealand, that surpassed the United States in battery electric vehicle sales share during 2026.

JSW MG Motor India Director-Sales Lakshmi Ram Kumar Subbaraj said new model launches, improved charging infrastructure, and initiatives like Battery-as-a-Service and vehicle buyback programs are driving electric vehicle adoption.

Shenu Agarwal, president of SIAM, said the electric vehicle ecosystem in India continues to mature with multiple offerings, improving charging infrastructure, and supportive policy measures.

Ducati extended its maintenance contract to its entire model range in India on October 19, 2026.