New Delhi, June 2 (IANS): India’s electric vehicle (EV) market saw a surge in demand during May, with higher fuel prices pushing more buyers toward battery-powered alternatives, according to reports by Nomura and HSBC. Nomura noted EV sales accounted for 6.4 per cent of passenger vehicle sales compared with 4 per cent in FY26, while electric two-wheelers rose to 8.9 per cent from 6.5 per cent last year. HSBC similarly reported that fuel price hikes have led customers to increasingly prefer EVs, estimating penetration at 9.3 per cent for two-wheelers and 6.6 per cent for passenger vehicles. Tata Motors emerged as a major beneficiary, reporting an 85 per cent year-on-year increase in EV sales, with bookings growing 2.5 times in the past two months. Nomura said Tata Motors is seeing strong demand in the sub-₹15 lakh segment and plans to expand production capacity from 10,000 to 15,000 units per month.
The shift was even more pronounced in the two-wheeler segment, where TVS Motor led with around 42,000 registrations in May, followed by Bajaj Auto and Ather Energy. Ather’s sales more than doubled year-on-year, boosting its market share to 16.5 per cent. Analysts cautioned that rising commodity costs remain a concern, but both brokerages believe EVs are at an “inflection point” in India, supported by favorable policies and growing consumer acceptance. Fuel prices rose sharply in April, with petrol and diesel up by ₹8 per litre, as the Indian crude basket stayed above $100 per barrel for three consecutive months amid the prolonged Middle East crisis. The choking of the Strait of Hormuz and stalled US-Iran peace talks added to uncertainty, raising expectations of further oil price hikes. Despite government efforts to cap consumer prices, Indian oil companies continue to lose ₹550 crore daily on petroleum sales, underscoring the economic pressures driving EV adoption.