India’s EV Retail Sales Hit Record 3.33 Lakh Units in September 2026, FADA Says

India’s electric vehicle market recorded its highest-ever monthly retail sales in September 2026, with 3,33,634 EVs sold across major vehicle categories, according to data released by the Federation of Automobile Dealers Associations.

The September figure represented a 74% year-on-year increase and lifted overall EV penetration to about 13% of total vehicle retail, compared with roughly 10% a year earlier.

The record was driven primarily by electric two-wheelers and passenger vehicles, both of which posted their strongest-ever monthly retail sales.

Electric Two-Wheelers Cross 2.07 Lakh Units

Electric two-wheelers remained the largest part of India’s EV market, with retail sales reaching 2,07,314 units in September.

Sales rose 88.67% year-on-year and 13.16% month-on-month, while electric two-wheelers accounted for 11.6% of total two-wheeler retail during the month.

The figure means more than one in nine two-wheelers retailed in India in September was electric.

This segment is increasingly benefiting from lower running costs, a wider range of models and improving charging access in major urban markets.

Electric Passenger Vehicles Nearly Double Year-on-Year

Electric passenger vehicle retail sales also reached a new monthly record at 36,108 units.

The segment grew 94.56% year-on-year and 17.63% compared with August 2026.

EV penetration in passenger vehicles rose to 8.5%, up from 5.7% in September 2025, showing that electric cars are becoming a more significant part of India’s new-vehicle market.

The growth has been supported by a broader choice of models across price segments and increasing participation from both established Indian manufacturers and global automakers.

Electric Three-Wheelers Remain the Most Electrified Segment

Electric three-wheelers continued to show the highest EV penetration among major vehicle categories.

Retail sales reached 86,024 units in September, rising about 40% year-on-year and 7.74% month-on-month.

Electric models accounted for 64.9% of all three-wheelers sold during the month, underlining the strong economic case for electrification in commercial passenger and last-mile delivery applications.

High vehicle utilisation and lower operating costs have made three-wheelers one of the earliest Indian transport segments to shift substantially towards electric mobility.

Electric Commercial Vehicles More Than Double Year-on-Year

Electric commercial vehicle retail sales stood at 4,188 units in September.

Although sales declined 10.9% month-on-month, they increased by about 158% year-on-year.

EV penetration in the commercial vehicle segment reached around 4%, compared with approximately 2.16% a year earlier.

The absolute volume remains much smaller than in two-wheelers or three-wheelers, but the sharp annual growth indicates increasing interest in fleet electrification.

September Sets an Absolute EV Record

FADA President Sai Giridhar described September as the strongest month for EV retail recorded in India.

He noted that the EV performance differed from the wider automobile market, where year-on-year growth was partly affected by a weak comparison base.

According to FADA, the September EV figure represents a genuine all-time high in absolute monthly retail sales.

Giridhar attributed the growth to festive demand, improving ownership economics, a wider range of electric models and continued policy support through programmes such as PM E-DRIVE and state-level EV initiatives.

EV Growth Is Spreading Across Mass-Market Segments

One of the most important aspects of the September data is that growth was not confined to premium vehicles or a single category.

Electric two-wheelers accounted for the majority of EV sales, while three-wheelers remained heavily electrified and passenger EVs approached a 9% market share.

This broader participation suggests that electric mobility is increasingly moving into mainstream purchase decisions rather than remaining concentrated among early adopters.

The economics are particularly compelling in vehicles with high daily utilisation, where fuel savings can offset the higher upfront cost more quickly.

Policy Support Continues Through PM E-DRIVE

Government policy remains an important part of India’s EV transition.

The PM Electric Drive Revolution in Innovative Vehicle Enhancement, or PM E-DRIVE, scheme supports electric mobility through demand incentives, charging infrastructure and assistance for selected vehicle categories.

State governments have also introduced combinations of road-tax exemptions, registration benefits, purchase incentives and charging-infrastructure policies.

These measures are increasingly being complemented by market factors such as falling battery costs, greater model availability and improved consumer familiarity with EV technology.

India’s EV Market Enters a New Scale

The September record shows how quickly electric mobility is becoming part of India’s broader automobile market.

With more than 3.33 lakh EVs retailed in a single month and overall penetration reaching about 13%, the sector is moving beyond isolated growth in individual categories.

Electric two-wheelers are scaling rapidly, three-wheelers are already predominantly electric in retail terms, passenger EVs are approaching double-digit penetration and commercial fleets are beginning to expand adoption.

The next phase will depend increasingly on charging availability, battery costs, domestic manufacturing, financing and product choice. The September 2026 numbers nevertheless show that India’s EV transition has entered a substantially larger phase, with electric vehicles becoming a visible and growing part of everyday mobility.

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References

1. Federation of Automobile Dealers Associations — FADA Releases September 2026 Vehicle Retail Data, October 6, 2026.
2. FADA Research — September 2026 Electric Vehicle Retail Data, collated from 1,468 of 1,469 RTOs.
3. Federation of Automobile Dealers Associations — Statement by FADA President Sai Giridhar on September 2026 electric vehicle retail performance.
4. Ministry of Heavy Industries, Government of India — PM E-DRIVE Scheme.

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