India’s EV registrations have crossed 1 million in H1 FY26, but September saw a mild decline largely due to a slowdown in passenger EV sales. Get the full breakdown.
EV registrations India: 1 Million Reached in H1 FY26, September Sees Mild Slump
EV registrations India surged past 1 million units in the first half of fiscal year 2026, reflecting continued momentum in the electric mobility sector—even as September recorded a minor dip, largely driven by a slowdown in the passenger EV (e-PV) segment.
1. EV Market Performance in H1 FY26
According to Vahan registration data, total EV registrations in September were about 1.82 lakh units, down slightly from 1.88 lakh units in August.
Even so, the cumulative registrations for H1 FY26 jumped to 1.1 million units, compared with 8.95 lakh in the same period last year—demonstrating strong year-on-year growth.
Quarterly figures also showed the upswing: Q2 FY26 saw 5.70 lakh units, up from 5.33 lakh units in Q1.
2. September Dip: What Happened to e-PV?
The drop in September was largely driven by the e-PV (electric passenger vehicle) segment. Registrations for cars and SUVs fell to 15,100 units, down from 18,290 units in August.
Analysts attribute this dip in part to recent GST cuts for internal combustion (ICE) and hybrid vehicles. The reduction widened the price gap between EVs and their conventional or hybrid counterparts, making the latter more appealing to price-sensitive buyers.
3. Two-Wheelers & Three-Wheelers Remain Strong
While passenger EVs softened, the two-wheeler EV market held steady. In September, registrations hovered around 1.04 lakh units, almost unchanged from August’s 1.05 lakh.
E-three-wheelers also showed resilience: 61,000 units were registered in September, just slightly lower than the 63,500 units of the previous month.
Among manufacturers, TVS Motor led in the two-wheeler EV segment with ~22,491 registrations. Bajaj Auto rebounded, Ather Energy held steady, while Ola Electric saw a notable dip in numbers.
4. Underlying Causes: GST Cuts & Price Sensitivity
The root causes behind the September slowdown reflect deeper structural dynamics:
- The GST on ICE vehicles was cut from 28% to 18%, and for larger hybrids from 43% to 40%, making conventional and hybrid vehicles comparatively more affordable.
- In contrast, EVs continue to attract a concessional 5% GST, but the recent reductions for ICE/hybrids narrowed the differential.
- Some analysts suggest this shift in taxation has “intensified the dilemma” for buyers, especially those balancing upfront cost against long-term savings.
- Others point out that EV adoption remains quite price-sensitive. To sustain growth, the industry must focus on strengthening charging infrastructure, lowering financing costs, and raising awareness of total cost of ownership benefits.
5. Implications & What to Watch Ahead
- Sustainability of growth: Whether the September dip is a temporary blip or early signal of buyer caution is now a key question.
- Effect of taxation on EV uptake: Future tax policy shifts could have outsized influence on EV demand trajectories.
- Investment in charging & infrastructure: To sway more consumers, convenient and reliable charging infrastructure will continue to be essential.
- Financing models & incentives: Flexible financing, subsidies, or incentives may be needed to offset the barrier of higher upfront costs.
- Segmental dynamics: While passenger EVs face headwinds, two- and three-wheelers may continue to drive mass adoption in urban and peri-urban markets.
6. Conclusion
EV registrations India crossing the 1 million mark in H1 FY26 is a powerful testament to the sector’s momentum. However, the modest decline in September—led by the e-PV segment—highlights the sensitivity of EV demand to pricing and policy shifts.
Going forward, the sector will need to maintain momentum through smart incentives, better infrastructure, and consumer education to ensure that this is not a momentary wobble, but part of a sustained upward trajectory.
For more EV related insights, visit; EV News
