Chennai: Despite the slowdown in Feb volumes, industry estimates suggest EV sales growth in FY26 will exceed last year’s levels, supported by sustained demand momentum. Growth in India’s battery electric vehicle market is also expected to significantly outpace the traditional internal combustion engine (ICE) segment this fiscal. In the current fiscal, the EV industry is expected to record nearly a 20% rise in total volumes, compared with 17% growth in FY25. ICE volumes across all segments, meanwhile, are expected to post high single-digit growth in FY26. As of now, total EV registrations stand at about 2.17 million units, with a month remaining in the fiscal year. In FY25, total EV registrations were about 1.97 million units. Feb saw electric vehicle retail volumes record a sequential decline across all segments, even as year-on-year growth remained strong, indicating continued expansion in adoption compared with last year. In Feb 2026, total EV registrations stood at 193,829 units, compared with 220,249 units in Jan 2026, marking a 12% month-on-month decline. However, volumes were 38% higher than the 140,170 units sold in February 2025, according to data from the Vahan dashboard. The electric two-wheeler (E2W) segment, the largest contributor to overall EV volumes, reported sales of 111,680 units during the month, down 9.5% sequentially from January, while monthly sales continued to remain above the one-lakh mark. On a year-on-year basis, the segment registered robust growth of 45.6%, highlighting sustained demand momentum. Sales of electric three-wheelers (E3W) fell 12.4% month-on-month to 66,398 units, compared with 75,765 units in January. Year-on-year, the segment expanded by 25.1%. The electric passenger vehicle (EPV) category witnessed the sharpest sequential correction, with volumes declining 28.3% to 13,659 units in February from 19,050 units in the previous month. Nevertheless, EPV sales surged 45% year-on-year. Overall, while February saw a broad-based sequential slowdown — attributed to normal post-January demand moderation — EV adoption trends are likely to remain firmly positive on a yearly basis across all vehicle segments.
