Hyderabad: EV demand accelerated sharply in May as rising fuel prices pushed more consumers towards electric vehicles, according to reports by Nomura and HSBC.
Nomura said electric vehicles accounted for 6.4 per cent of passenger vehicle sales in May. The share stood at 4 per cent during FY26. Electric two-wheelers also gained momentum. Their market share rose to 8.9 per cent from around 6.5 per cent a year earlier.
HSBC reported a similar trend. The brokerage estimated electric two-wheeler penetration at 9.3 per cent. It placed electric passenger vehicle penetration at 6.6 per cent during the month.
Among passenger vehicle makers, Tata Motors emerged as a key beneficiary of growing EV demand. The company recorded an 85 per cent year-on-year jump in electric vehicle sales. Nomura said Tata Motors’ EV bookings increased 2.5 times over the last two months. Demand remained particularly strong in the sub-₹15 lakh category.
To support future growth, Tata Motors plans to raise its monthly EV production capacity from 10,000 units to 15,000 units.
EV demand lifts sales across two-wheeler segment
The electric two-wheeler market also posted strong growth in May. TVS Motor retained the top position with around 42,000 electric scooter registrations during the month.
Bajaj Auto secured the second spot, while Ather Energy ranked third. Ather more than doubled its sales compared with the previous year. The company also expanded its market share to 16.5 per cent.
Brokerages attributed the growth largely to higher fuel costs. Oil marketing companies increased petrol and diesel prices by about ₹8 per litre over two weeks in April. At the same time, the Indian crude basket remained above $100 per barrel for three consecutive months until May.
The ongoing Middle East crisis continued to create uncertainty in global energy markets. Disruptions near the Strait of Hormuz also kept crude prices elevated and increased pressure on fuel costs.
Despite concerns over rising commodity prices, Nomura and HSBC expect EV demand to remain strong. Nomura said the Indian EV market has reached an inflection point, supported by favourable government policies and growing consumer acceptance.
