New Delhi: The Indian electric vehicle (EV) market is witnessing a sharp acceleration in adoption, creating significant opportunities for domestic manufacturing, localization and investment across the battery and electronics value chain, a report said on Wednesday.
According to a report by HSBC Global Investment Research, electric vehicle adoption has been gaining momentum in recent months, driven initially by oil price uncertainty and increasingly by growing consumer acceptance and network effects.
The sales growth increases confidence in the electric mobility ecosystem and strengthens the long-term prospects for electrification in India, the company added.
HSBC believes the next stage of growth will be driven by localization, scale and technological advances, with growing demand for batteries, components and energy storage systems creating opportunities for domestic manufacturing and supply chain development.
The report also highlights that battery energy storage systems (BESS) can play a key role in supporting India’s renewable energy ambitions, with total demand projected to reach 160 GWh by FY29.
The report estimates that battery imports could rise to 95-100 GWh by FY30 if EV penetration reaches 15-17 percent among two-wheelers, passenger vehicles and electric buses, 60 percent among three-wheelers and 15 percent among light commercial vehicles.
Moreover, retail sales of electric vehicles in India grew 52.9 per cent year-on-year to an all-time August high of 2,98,448 units in 2026, with overall penetration increasing to 12.3 per cent from 9.5 per cent a year earlier, according to data from the Federation of Automobile Dealers Associations (FADA).
All four EV segments – two-wheelers, three-wheelers, passenger vehicles and commercial vehicles – recorded their highest ever retail sales in August.
Retail sales of electric two-wheelers grew 67.05% year-on-year to 1,83,204 units in August.
Sales of electric three-wheelers grew 25.28% year-on-year to 79,846 units.
The electric commercial vehicle segment was the fastest growing category, with retail sales nearly tripling year-on-year to 4,702 units from 1,631 units in August 2025.
Sales of passenger electric vehicles rose 51.89% year-on-year to 30,696 units.
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