Traffic in middle lane revving up e-cars; Rs 10-30L e-cars see fastest growth amid discounts

Mumbai: The mid-market ₹10-30 lakh segment is driving India’s electric passenger vehicle adoption, but concerns over rising fuel prices and supply disruptions amid the Israel-US-Iran war have not yet triggered a broader demand surge, dealers said.

While electric PV sales rose 77% year-on-year to a record 175,000 in 2025, according to data from the government’s Vahan portal, dealers attributed it largely to year-end discounts and promotional schemes rather than a structural shift linked to global uncertainties.

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“If fuel prices increase sharply or fuel is rationed, then there could be an uptick in demand for EVs,” said a Delhi-based car dealer who requested not to be identified.

As increasing options and improving infrastructure push electric mobility in the country, adoption remains concentrated in the ₹10-30 lakh price range, where upfront costs and practicality align better, experts said.

In contrast, both entry-level and premium segments continue to lag, constrained by pricing gaps, limited model availability, and range considerations.

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“EVs are gaining traction where buyers can balance upfront cost with everyday usability,” said Ravi Bhatia, president of automotive markets intelligence firm Jato Dynamics. “Lower price segments remain highly cost-sensitive, while the premium end is driven by different considerations.”

Better Product Offerings

EV penetration is strongest in the ₹10-20 lakh segment, where it is around 48%, making it one of the most active segments for electrification, data from Jato Dynamics show. Buyers in this category are more open to experimenting with new technologies, supported by better product offerings and feature sets.

The concentration of demand in the mid-market is not accidental. Even before the introduction of EVs, Indian consumers had begun shifting towards higher-value vehicles.

“The Indian auto market had already evolved from being price-sensitive to becoming value-sensitive by the time EVs arrived,” said Vinay Raina, chief commercial officer at JSW MG Motor India. “Going forward, the maximum traction will continue to be in the mid-priced segment.”

In contrast, the entry-level segment remains heavily price-driven, with limited room for automakers to offer the range, features, and performance that customers increasingly expect from EVs. This has resulted in a clear product gap, further slowing adoption at the lower end of the market. Models such as the MG Comet EV cater largely to urban use cases, while mass-market demand in the below Rs 10 lakh segment continues to favour petrol-powered vehicles like the Tata Tiago and Tata Punch.

As more models enter the market and technology evolves, India’s EV transition would continue, but largely from the middle outward rather than as a full-market shift, experts said. And the adoption is likely to be gradual unless geopolitical tensions persist long enough to materially disrupt fuel supply or sharply increase prices.

Automakers remain optimistic about long-term growth. Tata Motors, which leads the domestic EV market, sees electric mobility as a mainstream opportunity driven by improving affordability and scale. Mahindra & Mahindra is focusing on premium electric SUVs, where early demand visibility is stronger and customers are more willing to absorb higher upfront costs, while MG Motors has a wide portfolio, from the Comet to the ₹75-lakh Cyberster.