Electric PV, 2W sales rise YoY, dip MoM in Aug ahead of festivals

Electric vehicle penetration continued to rise in August despite a sequential moderation in registrations ahead of the festive season, with electric passenger vehicles (PVs) and two-wheelers posting strong year-on-year growth.

Electric PV retail rose 51.9 per cent year-on-year to 30,696 units in August from 20,213 units a year earlier, according to Federation of Automobile Dealers Associations (FADA) data. Their share of overall PV retail increased to 7.6 per cent from 5.8 per cent in August 2025.

Electric two-wheelers grew even faster, with registrations rising 67.1 per cent to 183,204 units from 109,628 units a year ago. EV penetration in the two-wheeler market increased to 10.7 per cent from 7.7 per cent.

Both categories, however, moderated from July. Electric PV registrations declined 6.8 per cent month-on-month, while electric two-wheelers were down 10.4 per cent. Their respective penetration levels also eased from 7.9 per cent and 11.2 per cent in July.

“There is usually a pause before the festive season, so some month-on-month moderation in August is not unusual. The right way to look at the underlying trend is year-on-year, where the numbers remain strong. The GST changes have given the automobile market a new base, and we are now operating in a newer orbit in terms of momentum and growth,” said Saharsh Damani, CEO, FADA.

Anurag Singh of Primus Partners also said August is typically subdued, with no major festivals, seasonal surge in economic activity or financial incentives such as accelerated depreciation benefits. Nevertheless, year-on-year and year-to-date sales have remained robust, making this the strongest August for the industry, he said, adding that the broader trend in EV market share remains upward despite the marginal monthly dip.

Auto industry veteran Arun Malhotra also cautioned against interpreting the sequential decline as weakening demand.

“The month-on-month moderation in EV registrations during August should not be read as a weakening of underlying demand. August had a higher number of holidays, which can lead to some delays in Vahan registrations, while some consumers may also have deferred purchases and registrations ahead of the festive season. Despite this, the year-on-year numbers remain strong. We should get a clearer picture of the underlying momentum as the festive season progresses and some of the deferred purchases and registrations come through,” Malhotra said.

VinFast jumps to fourth spot among electric PVs

Tata Motors retained a commanding lead in electric PVs, with August registrations of 13,158 units, up 63.2 per cent year-on-year but down 3.8 per cent from July. Mahindra & Mahindra followed with 6,464 units, up 56.2 per cent year-on-year, though registrations declined 16.5 per cent sequentially. JSW MG Motor was third with 4,622 units, down 17.8 per cent year-on-year and 18.8 per cent month-on-month.

Among the newer entrants, VinFast was a notable exception to the sequential decline, with registrations rising 48.4 per cent from July to 2,199 units, taking it to fourth place. Maruti Suzuki registered 1,412 units, down 10.7 per cent sequentially. Hyundai’s registrations more than doubled year-on-year to 877 units, though they fell 13.6 per cent month-on-month, while Kia’s 742 units were up from 287 units a year earlier but down 19.3 per cent sequentially.

TVS extends lead over Bajaj; Ola slips to fifth in electric 2Ws

The competitive order in electric two-wheelers has shifted sharply over the past year, with TVS Motor strengthening its lead over Bajaj Auto. TVS registered 48,938 units in August, up 98.6 per cent year-on-year from 24,639 units, while Bajaj’s registrations rose 80.7 per cent to 41,114 units from 22,747 units.

As a result, the gap between the two market leaders widened to 7,824 units in August 2026 from just 1,892 units a year earlier. Ather Energy ranked third with 28,757 units, followed by Hero MotoCorp at 19,007 units.

Ola Electric slipped to fifth among the leading manufacturers and was the only one among the top five to record a year-on-year decline. Its registrations fell 28.8 per cent to 13,852 units from 19,449 units in August last year.

Electric CVs hit all-time monthly high

Electric commercial vehicles were the fastest-growing EV category during the month. Registrations nearly trebled year-on-year to an all-time monthly high of 4,702 units, up 188.3 per cent, while their share of overall CV retail increased to 5.18 per cent from 2.06 per cent.

Electric three-wheelers, where electrification is already much deeper, registered 79,846 units, up 25.3 per cent year-on-year. EVs accounted for 65.3 per cent of all three-wheelers sold during August, compared with 56.6 per cent a year earlier.

Overall EV retail across categories stood at 298,448 units in August, up 52.9 per cent year-on-year, taking EV penetration to 12.3 per cent from 9.5 per cent a year ago, according to FADA.