India Set to Cross 5 Million Car Sales in FY27: Auto Industry Growth Vision

Will EVs, Hybrids and CNG Cars Change India’s 5 Million-Car Market?

The next question is not simply EV vs petrol car sales in India. India is likely to remain a multi-powertrain market for some time, with consumers choosing technology according to price, usage, fuel availability and convenience.

The changeover is already evident, but the numbers need to be read carefully. India recorded around 2.55 million EV sales across vehicle categories in FY25-26, electric vehicle sales across all categories in FY2025-26, according to data from the Federation of Automobile Dealers Associations (FADA) and Vahan registrations.

However, two- and three-wheelers made up nearly 87% of those volumes. That means the headline EV penetration figure should not be presented as passenger-car EV penetration. 

​(Source: IBEF)

For cars, the transition is therefore likely to be more gradual. CNG and hybrids can continue to bridge the gap for consumers who want better running economics without changing their driving habits, while EVs can gain ground as charging availability and consumer confidence improve.

The India car sales forecast FY27 will consequently depend less on one technology replacing another and more on whether automakers can offer the right powertrain and for the right price.