An electric vehicle (EV) is driven on the road near India’s Rashtrapati Bhavan Presidential Palace in New Delhi
| Photo Credit:
REUTERS/ANUSHREE FADNAVIS
Electric four-wheelers (E4Ws) saw a boost in in May 2026 driven by sharply rising fuel prices, a wave of new model launches and improving consumer confidence in electric mobility.
Registrations of E4Ws rose 82 per cent year-on-year in May 2026 to 25,509 units from 14,006 units in the same month last year, according to Vahan data collated as at 9 am on June 1. On a month-on-month basis, registrations increased 14 per cent from 22,405 units in April.
Industry experts said the surge reflects a combination of economic and market factors. The steep increase in petrol and diesel prices during May widened the running-cost advantage of electric vehicles, while a growing range of products across segments, particularly SUVs, attracted a broader set of buyers. The entry of new manufacturers and continuous product launches have also expanded consumer choice and boosted market visibility
Since March 2026, monthly registrations have averaged around 25,000 units, compared to roughly 17,300 units through most of FY26, a jump of close to 45 per cent, pointing to a meaningful shift, said Poonam Upadhyay, Director, Crisil Ratings. Fuel costs have been a key factor. Petrol and diesel prices rose by a cumulative ₹7.50 per litre across four revisions in May 2026 alone, and with global crude supply remaining uncertain, direction of fuel prices is unlikely to ease in the near term, she said.
The recent hikes have widened running cost advantage of EVs further, and buyers in cities with reasonable charging infrastructure are increasingly factoring that in. OEMs expanding into the mid-SUV segment have also brought more buyers into the consideration set. The combination of sharply higher fuel costs and wider product choice is driving sustained uptick in monthly volumes, she added.
Gaurav Vang
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