Home / Business and Economy / EV Surge: 10.7% Penetration Amidst Supply Squeeze
EV Surge: 10.7% Penetration Amidst Supply Squeeze
17 Oct
Summary
- EV penetration reached 10.7% across vehicle categories in India.
- Major automakers are boosting production despite supply chain issues.
- Festive demand is increasing pressure on manufacturers to expand capacity.
Electric vehicle penetration has reached 10.7% across all vehicle categories in India as of October 17, 2026. Electric cars represent 8.5% of passenger vehicle registrations, while electric two-wheelers constitute 11.6% of registrations. The three-wheeler segment shows a significantly higher penetration at 64.9%.
Major manufacturers are experiencing increased demand. Tata Motors Passenger Vehicles has seen bookings nearly 2.5 times their pre-February 2026 levels and increased its quarterly EV production by nearly 40%. Despite doubling its monthly EV production capacity to over 16,000 units, supplier capacity remains a constraint.
Ather Energy plans to more than double its annual production capacity to 920,000 units. Hero MotoCorp is increasing monthly EV capacity to 45,000 units by the end of FY27, and Bajaj Auto aims to raise its electric two-wheeler capacity to 60,000 units per month.
These expansions are occurring amidst challenges such as China's restrictions on critical components and delays due to geopolitical tensions in West Asia. Automakers are working to secure supplies and ramp up production to sustain this growth trajectory.
