India’s electric passenger vehicle market continued its rapid expansion in July, with registrations jumping 73% year-on-year to 31,138 units, even as sales moderated slightly from the previous month. According to a Nuvama report, the strong momentum reflects rising consumer acceptance of electric cars, supported by a growing range of models across price points.
For the first four months of FY27, electric passenger vehicle (E-PV) registrations have nearly doubled, rising 90% year-on-year to 119,343 units from 62,808 units in the corresponding period last year, the report said.
Despite the sharp growth in volumes, EV penetration in the passenger vehicle market remained unchanged at 7.7% in July, the same level as in June.
The biggest winner in July was Tata Motors, which further strengthened its leadership position. The automaker registered 12,896 electric passenger vehicles during the month, up 92% from a year ago, giving it a commanding 41.4% market share compared with 37.4% a year earlier. On a sequential basis as well, Tata was among the few large players to post growth, with volumes inching up 1% over June and market share improving by 321 basis points.
Mahindra & Mahindra remained the second-largest player and continued to be one of the fastest-growing OEMs. The company recorded 7,400 registrations, a 145% jump year-on-year, taking its market share to 23.8% from 16.8% a year ago. While volumes were down 9% from June, Mahindra still added nearly seven percentage points of market share compared with last July, highlighting the success of its expanding EV portfolio.
MG Motor retained the third spot with 5,430 registrations. However, unlike Tata and Mahindra, it continued to lose ground. Volumes fell 8% year-on-year and 12% sequentially, while its market share shrank sharply to 17.4% from 32.8% a year ago—a decline of 1,540 basis points, the steepest among major players.
Maruti Suzuki, still in the early stages of its EV journey, sold 1,503 units during the month, making it the fourth-largest player. Although volumes declined 25% from June, the company accounted for 4.8% of the market in July and 5.5% on a year-to-date basis.
Vietnamese automaker VinFast rounded out the top five with 1,448 registrations. Having entered the market recently, the company maintained flat month-on-month volumes and increased its share slightly to 4.7%.
Among other manufacturers, BYD registered 713 units, up 41% year-on-year but down 23% from June. Hyundai reported 538 units, down 25% year-on-year but recovering 44% sequentially. Kia posted the strongest annual growth among established brands, with registrations rising nearly six-fold to 445 units, although its July volumes slipped 17% from June.
In the luxury EV space, BMW and Mercedes-Benz both witnessed a weak month. BMW registrations fell 33% sequentially to 344 units, while Mercedes-Benz registrations dropped 35% to 157 units.
Tesla, despite a small base, emerged as the strongest sequential performer. Registrations jumped 145% month-on-month to 107 units, while PCA Automobiles recorded a 75% increase to 49 units.
Overall, July presented a mixed picture on a month-on-month basis. Besides Mercedes-Benz and BMW, Maruti Suzuki, BYD and Kia were among the key laggards, with volumes declining 25%, 23% and 17%, respectively. On the other hand, Tesla, PCA Automobiles and Hyundai stood out with strong sequential growth.
According to Nuvama, the competitive landscape is becoming increasingly concentrated around the top two players. Tata Motors and Mahindra together accounted for over 65% of all electric passenger vehicle registrations in July.
Nuvama believes the structural growth story for electric passenger vehicles remains intact. “EV acceptance is improving due to higher aspirational value and the availability of more model options,” the brokerage said.