Rising fuel costs accelerate EV shift; MG bets bigger on plug-in hybrids

Rising fuel prices and growing consumer awareness of lower running costs are accelerating the shift towards electric mobility, prompting JSW MG Motor India to sharpen its focus on new-energy vehicles (NEVs), according to Aabhas Sharma’s Times of India report.

The company expects NEVs, including electric vehicles (EVs), hybrids, plug-in hybrids (PHEVs) and range-extender EVs, to contribute nearly 80% of its total sales this year, in line with its long-term target of 75%, managing director Anurag Mehrotra said.

Passenger vehicle EV penetration, which had slipped below 4% at the beginning of 2026, climbed past 8% in June, driven by higher fuel prices and rising consumer interest in electrified mobility.

“Demand is not the challenge any more. The challenge is giving customers enough choice,” Mehrotra told TOI.

The broader industry is also witnessing a rapid rise in EV adoption. While Tata Motors continues to lead India’s electric passenger vehicle market, EVs now account for around one-fifth of its passenger vehicle sales. Mahindra, too, has expanded its electric portfolio, with EVs contributing about 12% of its passenger vehicle volumes in June.

Industry-wide, electric passenger vehicle sales are growing at around 70%, significantly outpacing the overall passenger vehicle market.

To widen the addressable market, MG plans to enter the plug-in hybrid segment later this financial year with its first PHEV, positioning it as an alternative for diesel SUV buyers.

According to Mehrotra, plug-in hybrids combine the lower running costs of electric driving with the convenience of a petrol engine for longer journeys, addressing range anxiety while reducing dependence on charging infrastructure. Although the technology has gained widespread acceptance in markets such as China and Europe, it has yet to see meaningful adoption in India, where automakers have largely focused on either battery electric vehicles or conventional hybrids.

The upcoming models will be underpinned by MG’s newly unveiled ADAPT (Advance Drive Architecture Platform Technology), which the company describes as India’s first multi-new-energy vehicle platform. The architecture is designed to support battery electric vehicles, hybrids, plug-in hybrids and range-extender EVs on a common platform.

(With TOI inputs)