Is India’s EV boom being shaped more by geography than technology?
Jan 19, 2026
AdvisorAlpha
Summary
India’s EV growth is led by Maharashtra and southern states, driven by policy, infrastructure, and OEM competition.
India’s electric passenger vehicle market has entered a decisive phase. After years of experimentation and early adoption, 2026 is shaping up as the point where regional strengths are defining the pace and direction of growth.
As of January 19, 2026, electric vehicle registrations across all segments crossed 2.3 million units in 2025. Within this, the electric passenger vehicle segment hit a record high of over 175,000 units, reflecting a sharp 77% year-on-year growth.
A clear pattern has emerged beneath this headline growth. Southern states, along with Maharashtra, have become the anchors of India’s electric passenger vehicle transition.
Why do southern states dominate EV adoption?
The southern stronghold and the Maharashtra factor
While southern India has long been seen as the backbone of EV adoption, 2025 data highlights a tighter concentration among a few leading states.
Maharashtra emerged as the single largest electric passenger vehicle market in 2025, registering 30,596 units, or roughly 17% of national sales. This leadership is backed by the state’s EV Policy 2025, which includes a ₹1,993 crore outlay, road tax waivers, and incentives such as 100% toll exemptions on key expressways including Mumbai–Pune, Samruddhi Mahamarg, and Atal Setu.
Southern states continue to show consistency rather than volatility. Karnataka and Kerala, along with Tamil Nadu, together maintained a steady 31–33% share of national electric passenger vehicle volumes.
Penetration data adds another layer. Despite lower absolute volumes, states like Tripura with a penetration rate of 15.87% and Kerala at 12% lead the country in EV-to-ICE ratios, indicating a higher share of electric cars in new vehicle sales.
From subsidies to infrastructure-led adoption
Industry analysts note that the drivers of EV adoption are changing in 2026.
The focus is shifting away from direct subsidies toward infrastructure-led usage benefits. Southern India’s lead is supported by high-density charging corridors such as Bengaluru–Chennai and Bengaluru–Hyderabad, which reduce range anxiety and improve day-to-day usability.
In Kerala, continuous urban-rural sprawl along highways ensures that charging infrastructure remains close to major transit routes. In Karnataka, growth is being reinforced by the taxi and fleet segment, where aggregators are increasingly shifting toward electric offerings under their XPres ranges.
OEM competition reshapes the market
The competitive landscape in electric passenger vehicles shifted sharply in 2025.
While Tata Motors remains the market leader, its share declined to around 40% from 62% earlier, as competition intensified. Its top-selling electric models include the Harrier EV, Nexon EV, and Punch.ev.
JSW MG Motor captured approximately 29% market share, led overwhelmingly by the Windsor EV, which accounted for 76% of its EV sales, along with the Comet EV. The Windsor EV gained traction through a Battery-as-a-Service model that lowered upfront purchase costs and challenged incumbents.
Mahindra increased its market share to about 21%, up from 7%, following the rollout of its INGLO platform vehicles including the XEV 9e, BE 6, and XUV400.
Public transport shifts gears
Electric adoption is not limited to private vehicles.
In 2025, Maharashtra overtook Delhi to become India’s largest electric bus market, registering 1,442 units. This expansion has been supported by the PM E-DRIVE scheme, which carries a ₹10,900 crore outlay and focuses on large-scale procurement for State Transport Undertakings.
What lies ahead in 2026?
Looking ahead, the electric passenger vehicle market is preparing for several high-profile entries. Maruti Suzuki is expected to launch its first electric SUV, while Tesla and VinFast are set to enter the premium segment.
Analysts project that electric passenger vehicle sales could reach 175,000 to 200,000 units by the end of FY26, reinforcing the role of southern states and Maharashtra as the structural drivers of India’s EV transition.
The takeaway
India’s EV growth story is increasingly regional. Infrastructure density, policy support, and usage patterns, rather than subsidies alone, are determining where adoption accelerates and where it lags.
