Electric vehicle (EV) penetration in the domestic retail market surpassed the double-digit milestone in May 2026, reaching an all time high of 10.7%. According to industry data, EV sales rose to 271,116 units during the month, out of total vehicle sales of 2.53 million units. In comparison, EV penetration stood at 8.1% in May 2025, when 186,922 EVs were sold from an overall industry volume of 2.32 million units.
In April, EV penetration was 9.2%, with sales of 250,888 units out of total vehicle sales of 2.72 million units. EV adoption also continued to outpace the broader automotive market. While total vehicle retail sales increased 9.3% year-on-year in May 2026, EV sales jumped 45%, highlighting the faster pace of electrification.
However, growth remains heavily concentrated in the two-wheeler segment. Electric two-wheelers accounted for 62.9% of total EV sales in May 2026, up from 56.1% in the corresponding month last year, underscoring their growing role in driving market expansion. In absolute terms, electric two-wheeler sales surged to 170,535 units from 104,902 units a year earlier.
Electric three-wheelers remained a key contributor to the EV market, although their share declined to 26.5% in May 2026 from 35.4% a year earlier. Despite the lower share, sales volumes increased to 71,860 units from 66,186 units. Meanwhile, electric passenger vehicles strengthened their position, accounting for 9.7% of total EV sales compared with 7.9% in May 2025, with volumes rising to 26,291 units from 14,699 units. Other EV categories collectively contributed less than 1% of total EV sales during the month.
The broader automobile market continues to be dominated by internal combustion engine (ICE) vehicles, although their share has gradually declined. Petrol-powered vehicles accounted for 74.3% of total retail sales in May 2026, down from 77.1% a year earlier, while diesel vehicles maintained a stable share of 9.3%. Compressed natural gas (CNG) vehicles increased their share to 5.1%, reflecting continued demand for alternative fuel options.
Petrol’s share declined 2.8 percentage points over the past year broadly matched by gains in EVs and CNG vehicles. Together, alternative powertrains accounted for 15.8% of total retail sales in May 2026, up from 12.5% a year earlier, indicating a steady shift away from conventional fuels.
The data indicates that while EV penetration has crossed the 10% threshold, adoption remains uneven across vehicle categories. Growth continues to be driven primarily by high-volume, price-sensitive segments such as two-wheelers, which benefit from lower operating costs, improving affordability, and a widening range of available models.
In contrast, electrification in the passenger vehicle segment remains at a relatively early stage. Higher upfront acquisition costs, limited charging infrastructure, and a narrower selection of mass-market models continue to constrain broader adoption in the cars segment.