Electric Passenger Vehicle Sales: Tata Motors Leads, Mahindra Surges

Total electric car retail sales reached 13,733 units in February 2026, representing a robust 44.48 per cent increase compared to the 9,505 units sold during the same month in 2025. While the monthly figure dipped from January’s high of 18,470 units, the annual trajectory remains firmly upward, reflecting sustained consumer interest in electric mobility.

Tata Motors retained its position as the undisputed leader in the electric passenger vehicle segment, retailing 5,568 units for a year-on-year growth of 38.51 per cent. The company’s Nexon EV, Tiago EV, and Punch EV continue to account for the majority of electric car sales in India, supported by an expanding charging network and competitive pricing strategy. Tata’s dominance in the segment has been a key factor in the overall growth of India’s EV market, with the company holding approximately 40 per cent market share.

JSW MG Motor India secured the second position with 3,312 units sold, driven by the popularity of its Comet EV and the refreshed ZS EV. However, the standout performer was Mahindra, which climbed to third place with 2,913 units, a massive jump from just 508 units in February 2025. The success of Mahindra’s BE and XEV lineups, launched in late 2025, has positioned the company as a serious challenger in the premium electric SUV segment. The Indian automotive industry continues to navigate trade policy changes while investing heavily in electrification.

New entrants such as VinFast, the Vietnamese automaker, registered 384 units in its early months of Indian operations, while BYD from China sold 306 units. The presence of international players is intensifying competition and accelerating the introduction of new models across price segments.

Electric Two-Wheelers: TVS Holds the Crown

The electric two-wheeler segment reported total sales of 1,11,709 units in February 2026, a 45.6 per cent increase over the same period in 2025. Despite a month-on-month decline from January’s 1.22 lakh units, the year-on-year growth demonstrates that electric scooters and motorcycles are becoming mainstream transportation choices for Indian consumers, particularly in urban areas.

TVS Motor Company retained the top spot in the segment, leveraging the strong performance of its iQube electric scooter range. The company’s extensive dealer network and brand trust have given it an edge over pure-play EV startups. Bajaj Auto, with its Chetak electric scooter, has also consolidated its position, while Ather Energy continues to grow through its expanding presence in tier 2 and tier 3 cities.

Ola Electric, which dominated headlines during its early launch phase, has seen its market share erode as established two-wheeler manufacturers scaled up their EV offerings. Quality concerns and service network challenges have weighed on the Bengaluru-based startup’s performance, though it remains a significant player in terms of overall volumes.

Government Policies Driving Adoption

India’s EV growth story is underpinned by a supportive policy framework at both central and state levels. The FAME II subsidy scheme, which was succeeded by the PM E-DRIVE scheme in 2024, provides direct financial incentives to buyers of electric vehicles. States such as Gujarat, Maharashtra, Delhi, and Karnataka offer additional subsidies, road tax exemptions, and registration fee waivers that further reduce the cost of ownership.

The government’s Production Linked Incentive scheme for the automotive sector has also attracted significant investment in domestic EV and battery manufacturing. Companies including Tata, Mahindra, Hyundai, and Suzuki have announced multi-billion-dollar investments in EV manufacturing plants across India. The broader Indian business landscape reflects this shift as auto companies restructure their portfolios toward electric platforms.

Charging Infrastructure Expansion

One of the biggest challenges for EV adoption in India has been the availability of charging infrastructure. However, this gap is narrowing rapidly. As of early 2026, India has over 15,000 public charging stations operational across the country, with plans to add another 10,000 by the end of the financial year. Companies such as Tata Power, Adani Electricity, and ChargeZone are leading the build-out, supported by government mandates that require new commercial and residential buildings to include EV charging provisions.

Battery swapping networks are also gaining traction, particularly for two-wheelers and three-wheelers used in last-mile delivery. Companies such as Battery Smart and SUN Mobility have partnered with e-commerce and food delivery platforms to deploy swapping stations in high-demand urban areas, addressing range anxiety among commercial EV users.

Challenges and Road Ahead

Despite the impressive growth figures, India’s EV market faces several challenges that could affect the pace of adoption in coming years. The rising oil prices and the weak rupee have paradoxically both helped EV adoption by making petrol vehicles more expensive to run, and hurt it by increasing the cost of imported battery components. Lithium-ion battery prices, which account for approximately 35 to 40 per cent of an electric vehicle’s total cost, remain sensitive to global supply chain dynamics.

The lack of a robust domestic battery cell manufacturing ecosystem is another concern. While the government has approved PLI incentives for battery cell production, commercial-scale manufacturing is still in its early stages. India currently imports the majority of its lithium-ion cells from China, South Korea, and Japan, creating a dependency that policymakers are keen to reduce.

EV Market Outlook for FY27

Industry analysts project that India’s electric vehicle market will continue growing at 35 to 40 per cent annually over the next three years, driven by new model launches, declining battery costs, expanding charging infrastructure, and sustained government support. The entry of established global automakers such as Hyundai, Kia, Toyota, and Volkswagen into the Indian EV space is expected to further diversify the market and bring premium electric vehicles to a wider consumer base. The Indian technology and innovation sector continues to support the transition through AI-driven battery management and connected vehicle platforms.

With over 13,000 electric cars and more than 1.1 lakh electric two-wheelers sold in a single month, the February 2026 data makes one thing clear: India’s electric vehicle revolution is no longer a future promise. It is a present reality that is reshaping the country’s automotive industry, energy landscape, and urban mobility patterns.

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Euler Motors Funding 2026: Series E to Power Commercial EV Expansion

Delhi-based Euler Motors plans to deploy the fresh capital across three priorities: expanding its vehicle production capacity, strengthening its charging infrastructure network, and entering new geographic markets. The company manufactures three-wheeled electric cargo vehicles used by last-mile delivery companies, e-commerce firms, and logistics providers.

Founded by Saurav Kumar in 2018, Euler has positioned itself at the intersection of two powerful trends — India’s push toward electric mobility and the explosive growth of e-commerce deliveries. The company claims its vehicles have collectively covered over 500 million kilometres, reducing an estimated 120,000 tonnes of carbon emissions compared with diesel equivalents.

India’s recent unicorn additions demonstrate that investor confidence in Indian startups is recovering after the funding winter of 2023-24. Euler is not yet valued at unicorn levels but is widely regarded as one of the strongest contenders in the commercial EV segment, where competition is intensifying from players such as Mahindra Electric, Piaggio, and OSM.

Swish, Proxgy, and Canvaloop Add to March 2026 Deal Flow

Euler’s raise was not an isolated event. In the same week, Swish, a 10-minute food delivery startup, raised $38 million to expand its rapid commerce model beyond metro cities into tier-two markets. The company operates dark kitchens combined with delivery pods, promising restaurant-quality meals faster than traditional platforms such as Swiggy and Zomato.

Proxgy, a wearable technology startup, secured Rs 2 crore in an investment from cricketer Riyan Parag. The deal highlights a growing trend of Indian athletes putting capital into technology ventures rather than traditional real estate or hospitality businesses. Parag has publicly stated that he wants to “invest in ideas that solve real problems.”

Surat-based Canvaloop raised $1.5 million from Gujarat Venture Finance Limited (GVFL) and Rockstud Capital. The company converts agricultural waste into sustainable textiles, a proposition that gained visibility after its appearance on Shark Tank India. Canvaloop’s technology processes crop stubble, jute, and hemp into fibres suitable for fashion and industrial applications.

The State of India’s Startup Ecosystem in March 2026

After a challenging 18-month period that saw valuations compress and several high-profile startups pursue profitability over growth, the Indian startup ecosystem appears to have found its footing. According to data from Mint, venture capital investment in Indian startups during January to March 2026 is tracking 40 per cent higher than the same quarter in 2025.

Healthcare, climate technology, and enterprise software are attracting the largest share of early-stage funding. Somerset Indus Capital closed a $288 million Fund III focused exclusively on healthcare growth opportunities in India, signalling that institutional investors see the sector as a multi-decade opportunity.

The corporate earnings landscape also supports the recovery. As India Inc reports improved revenue growth, corporate venture arms are increasing their startup investments. Tata Group, Reliance, and the Aditya Birla Group have all expanded their venture portfolios in the current fiscal year.

Commercial EVs Lead India’s Green Mobility Transition

Euler’s fundraise reflects a structural shift in India’s mobility landscape. The central government’s FAME III subsidy scheme, extended through March 2027, provides direct incentives for commercial EV purchases. State governments in Delhi, Maharashtra, and Karnataka offer additional registration fee waivers and road tax exemptions that make electric three-wheelers price-competitive with diesel alternatives.

The economics are compelling. Euler estimates that its vehicles save fleet operators Rs 1.5 per kilometre compared with internal combustion engine equivalents, a margin that compounds rapidly across fleets running 100 to 150 kilometres daily. Battery swapping technology, which Euler has integrated into its newer models, reduces charging downtime to under three minutes.

Challenges remain. Charging infrastructure outside major cities is sparse, and battery recycling policies are still evolving. The founder stories driving India’s startup culture often highlight perseverance through such infrastructure gaps, and Euler’s founder Saurav Kumar is no exception. His decision to build the company’s own charging network alongside its vehicles has proven prescient as competitors struggle with third-party dependency.

What Investors Are Watching Next

The late-March funding surge suggests that Indian startups are entering the new financial year with momentum. For investors, the key metrics have shifted. Growth at all costs has given way to unit economics, customer retention, and regulatory resilience. Startups that can demonstrate sustainable paths to profitability are commanding premium valuations, while those reliant on heavy discounting continue to face scrutiny.

For Euler Motors specifically, the next milestone will be scaling production beyond its current capacity of 5,000 vehicles per month. The company has hinted at a new manufacturing facility in Tamil Nadu, which would bring it closer to clients in southern India and reduce logistics costs. If successful, the Series E round could be Euler’s last before a potential initial public offering in 2027 or 2028.

The broader message is clear: India’s startup ecosystem is not merely surviving — it is evolving into a more disciplined, diversified, and globally competitive market. The deals closing in March 2026 represent not just capital inflows but a maturation of the entire entrepreneurial landscape.

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