EVs moving at faster speed in premium lane

New Delhi: Premiumisation is driving India’s electric passenger vehicle market, with carmakers focusing on mid-sized and high-end segments with new launches even as mass adoption remains limited.

The share of models priced between ₹20-30 lakh in total electric car sales rose more than fourfold to 26.4% last fiscal from 6.2% two years earlier, while the share of cars priced above ₹30 lakh more than doubled to 14.2%, according to Jato Dynamics.

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“Product availability and consumer readiness are currently aligned in the ₹20 lakh+ bracket – better range, better features, buyers less sensitive to upfront cost,” said Ravi Bhatia, president at Jato Dynamics. “That’s where manufacturers focused. That’s where the market moved.”

Of the 30-odd electric cars offered by mainstream carmakers in India today, only three – Tata Punch EV, Tata Tiago EV and MG Comet – start below ₹10 lakh. Mahindra’s born-electric SUVs – the BE 6 and XEV 9e – have helped the company carve a distinct identity, targeting lifestyle and premium EV buyers with prices upwards of ₹19 lakh, industry watchers noted.

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JSW MG Motor, too, has expanded its portfolio with the M9 MPV and the Cyberster electric roadster, both priced above Rs 60 lakh and retailed through its new MG Select premium network. “India’s EV market is expanding upward before it broadens downward, which could potentially keep EV market small,” Bhatia said.

The share of electric cars priced below ₹10 lakh more than halved to 6.9% in FY26 from 18.5% in FY24 while those priced between ₹10-20 lakh fell to 52.5% from 69%.

E-car sales topped 200,000 units last fiscal against about 91,500 units in FY24. Total sales of passenger vehicles in India rose by about 8% year-on-year to 4.64 million units in FY26.

Strong Demand

EV penetration remained just 4.2%.

In the luxury segment priced upwards of ₹40 lakh, demand for EVs doubled in the last two years to around 5,400 units in FY26.

Santosh Iyer, managing director of Mercedes Benz India, said demand for electric vehicles at the upper end of the market remains strong.

“At the top-end of our portfolio (prices starting at ₹1.4 crore), EV penetration stands at 20%,” he said, adding that the company sold out all 400 units of the CLA BEV, priced over ₹55 lakh, allocated before its launch on April 24.

Iyer said the company will reopen bookings for the vehicle in July.

Mercedes Benz India’s EV penetration stands at about 8%, double of the average seen in the mainstream segment. At rival BMW too, EVs bring in more than a fourth of the sales.

Industry watchers said the entry-level electric car segment faces structural constraints, with thin margins, limited models and cost economics that do not work without subsidies.

Bhatia of Jato Dynamics expects near-term EV growth to continue skewing toward higher price bands “unless someone cracks affordability with genuine product innovation — not price discounting.”