India’s electric three-wheeler (e3W) retail sales surged 40 per cent year-on-year to 86,024 units in September 2026, compared with 61,434 units a year earlier. Share of the overall three-wheeler market increased to 64.9 per cent from 56.7 per cent in September 2025, according to data from the Federation of Automobile Dealers Associations (FADA).
The 8.2-percentage-point increase in market share highlights the growing acceptance of e3W in the last-mile passenger and goods transportation segment, driven by lower operating costs, improving vehicle performance and an expanding charging ecosystem, say experts.
Bajaj topped the e3W sales chart in September, followed by the Mahindra Group and TVS Motor Company. YC Electric Vehicle was the only player among those tracked to register a year-on-year decline in sales.
However, with e3W already accounting for nearly two-thirds of the market, the next phase of growth could be more gradual, increasingly depending on replacement demand and the transition of existing CNG vehicle operators to electric mobility, analysts note.
Poonam Upadhyay, Director, Crisil Ratings, said e3W had established a clear lead in the market, and the key question now was how much further they could expand into the remaining segment, where compressed natural gas (CNG) continued to be a major alternative.
“The next leg of EV growth is therefore likely to be more gradual and increasingly driven by replacement demand,” she said.
Rajat Gupta, Business Head – Commercial Mobility Business, TVS Motor Company, attributed the growth to changing customer preferences and the factors influencing vehicle purchase decisions.
For commercial users, lower running and maintenance costs, improved range, charging convenience and the availability of capable, connected vehicles are making e3W an increasingly attractive proposition for everyday operations. Greater customer familiarity and a stronger EV ecosystem are also building confidence, he said.
CNG would continue to coexist with electric vehicles in markets where its infrastructure and operating patterns made it relevant, including Chennai, Bengaluru and Mumbai, Gupta said. However, as customers increasingly assess vehicles on total cost of ownership, uptime and long-term value, electric three-wheelers are expected to gain further ground, he said.
Deependra Sharma, CEO, e-3W, Montra Electric, part of the Chennai-based Murugappa Group, said e3W were emerging as a key driver of the accelerating adoption of electric commercial vehicles in India.
Lower running and maintenance costs, improving range and performance, and a growing charging ecosystem were supporting demand, he said, noting that adoption was increasingly becoming market-led rather than being driven primarily by incentives.
Published on October 9, 2026
