Rising fuel prices triggered by the West Asia conflict are reshaping car-buying decisions in the country, with more consumers opting for electric vehicles, driving the strongest quarterly growth in EV registrations in more than a year.
According to Vahan data, electric passenger vehicle registrations jumped 89.3% year-on-year to 82,737 units in the April-June quarter, compared with 43,710 units a year earlier.
The surge was led by Tata Motors and Mahindra, both of which more than doubled their EV registrations during the quarter, strengthening their hold on the market.
Tata Motors retained its leadership with 32,283 registrations, up 104% from 15,794 units a year ago, taking its market share to 39% from 36.1%. Mahindra, the second-largest electric passenger vehicle maker, nearly doubled registrations to 20,112 units from 10,144 units. Together, the two companies accounted for more than 63% of all electric passenger vehicle registrations during the quarter, up from less than 60% a year ago.
The momentum gathered pace through the quarter, with registrations climbing from 24,963 units in April to 27,320 units in May and 30,454 units in June.
“There has been a faster acceptance of EVs because of the Middle East crisis. If the same customers were reluctant before February 2026, they are now more amenable to considering an EV. The Middle East crisis has shifted the market from a push mode to a pull mode,” said Shailesh Chandra, managing director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, on June 30.
JSW MG Motor India, the country’s third-largest electric passenger vehicle maker, registered 16,502 units during the quarter, up 22% year-on-year. Maruti Suzuki, which entered the EV market only a few months ago, recorded 4,894 registrations in its first full quarter. VinFast clocked 3,973 registrations, while BYD grew 30% to 2,173 units. Kia registered 1,304 units, nearly ten times higher than a year earlier on a smaller base. Hyundai’s registrations declined to 1,386 units from 2,142 units, while Stellantis registered just 78 vehicles.
Unlike petrol, diesel and CNG vehicles, whose running costs increased with fuel prices, EV operating costs remained largely unchanged, widening the ownership cost advantage. At the same time, new model launches, expanding charging infrastructure and rising consumer awareness helped manufacturers convert enquiries into retail sales.
