Broad-based EV growth in January; Ola Electric sees stiff competition: Choice
"Ola Electric (100 per cent EV) saw volumes fall 70.4 per cent amid intensifying competition from established players," Choice stated.
- Feb 2, 2026,
- Updated Feb 2, 2026 1:51 PM IST
India's electric vehicle (EV) market recorded broad-based volume growth in January 2026, with electric passenger vehicles (E-PVs) emerging as the top-performing segment, according to Choice Institutional Equities.
Commenting on the two-wheeler segment, Choice said, "The E-2W segment delivered a healthy 18.6 per cent YoY growth in January 2026, although OEM-wise performance remained divergent. Hero MotoCorp (EVs ~3 per cent of domestic sales) reported a sharp 675.4 per cent YoY surge, aided by strong demand, improved dealership reach and a favourable base. Ather Energy (100 per cent EVs) sustained a solid 58.7 per cent YoY growth, supported by recent product launches across multiple price bands and stable retail traction. TVS Motor (EVs ~7 per cent of domestic sales) posted a 38.6 per cent YoY growth driven by strong demand for the iQube and improving traction for the Orbitor. Bajaj Auto (EVs ~18 per cent of domestic sales) saw a steady 12.8 per cent YoY growth, reflecting a mature portfolio. Meanwhile, Ola Electric (100 per cent EV) saw volumes fall 70.4 per cent amid intensifying competition from established players."
According to Choice, "The E-PV segment witnessed strong traction in January 2026 as volumes rose 43.9 per cent YoY. M&M (EVs ~7 per cent of domestic sales), driven by recent EV launches and improving customer acceptance, recorded a sharp increase in volumes, from 739 to 3,445 units YoY TTMT (EVs ~15 per cent of domestic sales) sales grew from 5,309 to 7,314 units YoY, supported by sustained demand for its electric portfolio. In contrast, MG Motors (EVs ~85 per cent of domestic sales) saw volume slightly decline, from 4,527 to 4,431 units YoY, amid intensifying competition."
Other EV segments also reported robust growth. Choice noted, "The E-3W segment recorded a healthy 21.3 per cent YoY growth, while the E-CV segment surged 105.4 per cent YoY. The momentum was driven by replacement demand, improving availability of vehicle financing, sustained growth in last-mile delivery, rising municipal and fleet orders and continued policy incentives, supporting strong traction across both E-3W and E-CV categories."
On the policy front, Choice highlighted the supportive role of trade and fiscal measures. It said, "The (India-EU) trade deal shields domestic EV manufacturers with a five-year protection period, delaying immediate European competition. It also eases component imports, facilitating rapid expansion and technological collaboration."
The brokerage added, "The Union Budget 2026 reinforces India's EV adoption through sustained PM E-DRIVE support and higher PLI payouts. These measures lower production costs and boost domestic manufacturing."
Meanwhile, shares of Hero MotoCorp, TVS Motor and M&M were trading around 1 per cent higher in Monday's session, while Bajaj Auto and Ather Energy fell by up to 2.21 per cent. And, Ola Electric touched a fresh all-time low level of Rs 30.46.
India's electric vehicle (EV) market recorded broad-based volume growth in January 2026, with electric passenger vehicles (E-PVs) emerging as the top-performing segment, according to Choice Institutional Equities.
Commenting on the two-wheeler segment, Choice said, "The E-2W segment delivered a healthy 18.6 per cent YoY growth in January 2026, although OEM-wise performance remained divergent. Hero MotoCorp (EVs ~3 per cent of domestic sales) reported a sharp 675.4 per cent YoY surge, aided by strong demand, improved dealership reach and a favourable base. Ather Energy (100 per cent EVs) sustained a solid 58.7 per cent YoY growth, supported by recent product launches across multiple price bands and stable retail traction. TVS Motor (EVs ~7 per cent of domestic sales) posted a 38.6 per cent YoY growth driven by strong demand for the iQube and improving traction for the Orbitor. Bajaj Auto (EVs ~18 per cent of domestic sales) saw a steady 12.8 per cent YoY growth, reflecting a mature portfolio. Meanwhile, Ola Electric (100 per cent EV) saw volumes fall 70.4 per cent amid intensifying competition from established players."
According to Choice, "The E-PV segment witnessed strong traction in January 2026 as volumes rose 43.9 per cent YoY. M&M (EVs ~7 per cent of domestic sales), driven by recent EV launches and improving customer acceptance, recorded a sharp increase in volumes, from 739 to 3,445 units YoY TTMT (EVs ~15 per cent of domestic sales) sales grew from 5,309 to 7,314 units YoY, supported by sustained demand for its electric portfolio. In contrast, MG Motors (EVs ~85 per cent of domestic sales) saw volume slightly decline, from 4,527 to 4,431 units YoY, amid intensifying competition."
Other EV segments also reported robust growth. Choice noted, "The E-3W segment recorded a healthy 21.3 per cent YoY growth, while the E-CV segment surged 105.4 per cent YoY. The momentum was driven by replacement demand, improving availability of vehicle financing, sustained growth in last-mile delivery, rising municipal and fleet orders and continued policy incentives, supporting strong traction across both E-3W and E-CV categories."
On the policy front, Choice highlighted the supportive role of trade and fiscal measures. It said, "The (India-EU) trade deal shields domestic EV manufacturers with a five-year protection period, delaying immediate European competition. It also eases component imports, facilitating rapid expansion and technological collaboration."
The brokerage added, "The Union Budget 2026 reinforces India's EV adoption through sustained PM E-DRIVE support and higher PLI payouts. These measures lower production costs and boost domestic manufacturing."
Meanwhile, shares of Hero MotoCorp, TVS Motor and M&M were trading around 1 per cent higher in Monday's session, while Bajaj Auto and Ather Energy fell by up to 2.21 per cent. And, Ola Electric touched a fresh all-time low level of Rs 30.46.