New Delhi: India’s electric passenger vehicle (EV) market recorded a sharp 57 percent year-on-year growth in the first quarter of 2026, significantly outpacing the overall passenger vehicle market growth of 13 percent, according to a report released by CyberMedia Research on Monday.
The report attributed the rapid rise in EV adoption to improving charging infrastructure, competitive pricing and the growing demand for connected and technology-driven features in vehicles.
According to the study, the connected EV segment witnessed 67 percent year-on-year growth, while adoption of digital instrument clusters increased by 55 percent. The penetration of digital clusters in vehicles rose from 35 percent to 48 percent during the period.
The report noted that connected EVs are increasingly turning passenger cars into India’s second most important smart device after smartphones. EVs also led the growth in digital cluster adoption, registering a 60 percent increase.
Advanced Safety and Smart Features Driving Demand
The adoption of Advanced Driver Assistance Systems (ADAS) rose by 49 percent, with Level-2 ADAS now available as a standard feature in 91 percent of vehicles equipped with such technology.
The report stated that regulatory initiatives like Bharat NCAP along with falling sensor costs have made vehicle safety a key consumer expectation rather than a premium feature.
Digital cockpit adoption also grew strongly, recording a 49 percent rise. Penetration increased from 29 percent to 39 percent as buyers increasingly preferred immersive in-car digital experiences.
EV Share Expected to Rise Further
The report projected that electric vehicles could account for 7 to 8 percent of India’s passenger vehicle market by the end of 2026, while connected vehicles may capture around 40 to 45 percent market share.
Despite the rapid technological transformation, India’s passenger vehicle market remains largely value-driven, with 97 percent of total sales concentrated in the sub-₹30 lakh segment.
Senior Analyst at CMR’s Smart Mobility Practice, Amit Sharma, said India’s automotive sector is witnessing a major transformation driven by electrification, connectivity and premiumisation trends. He added that sustained growth in EVs and connected vehicles reflects strong long-term momentum in the industry.
The report also highlighted regional trends, noting that Kerala led the country with 14.1 percent EV penetration. Karnataka and Odisha also recorded increasing EV adoption, while Maharashtra saw its share decline to 9.2 percent.
With inputs from IANS