The electric vehicle industry in India is experiencing rapid growth as consumers seek cleaner, more affordable transportation options amid volatile petrol and diesel prices. According to The Financial Express, this trend has been accelerated by rising global crude oil prices and international market uncertainty, making EVs increasingly attractive due to their lower running and maintenance costs over time. The sector benefits from strong government support, rising environmental awareness, and increasing adoption rates, positioning it for significant growth in the coming years.
Maruti Suzuki leads as India's largest passenger vehicle manufacturer with approximately 40% market share across hatchbacks, sedans, and MPV segments. As reported by The Financial Express, the company launched its first EV with a battery rental plan on February 17, 2026, marking its transition from pure ICE to partial EV exposure. The company's financial performance shows strong fundamentals with net profit growing at 89.19% CAGR over five years and an average ROE of 15.75%. Maruti Suzuki is expanding production capacity to meet domestic demand while strengthening its global export hub capabilities.
Hero MotoCorp, the world's largest motorcycle and scooter manufacturer, is advancing its electric mobility transition through manufacturing advanced battery packs and Vida electric scooters at its Sri City facility. According to The Financial Express, the company has expanded EV capacity from 15,000 to 25,000 units and plans to double capacity before year-end, with EV output expected to increase by 50% compared to the previous quarter. Hero MotoCorp's financial performance shows profit growth at 66.5% CAGR over five years with an average ROE of 23.73%. The company operates five manufacturing plants across India and maintains a well-established network of over 6,000 sales and services outlets.
Eicher Motors, operating through Royal Enfield and VECV joint venture, has established significant presence in electric mobility through its Eicher Skyline Pro-E range and partnerships. As reported by The Financial Express, the company's VECV division has deployed 35 electric sleeper buses on high-traffic corridors and rolled out the 50,000th electric bus from its Baggad plant. Eicher Motors' financial performance shows exceptional growth with net profit CAGR of 171% over three years and an average ROE of 22.17%. The company plans to expand production capacity to 2 million units annually with investments of around ₹9.6 billion.
The Nifty Auto index gained 1% to 26,976.45 on Thursday, shrugging off the ongoing controversy surrounding the nationwide rollout of E20 ethanol-blended fuel. According to LiveMint, among the constituents, Balkrishna Industries gained 2%, while Mahindra & Mahindra and Ashok Leyland rose 1% each. Tata Motors' passenger vehicle business, Samvardhana Motherson, Maruti Suzuki and Hero MotoCorp added over 0.5% each. However, not all auto stocks participated in the rally, with Bosch, Bharat Forge, Bajaj Auto and Eicher Motors trading in the red. The rally came despite concerns from vehicle owners over mileage loss and mechanical compatibility issues with older vehicles, while Union ministers defended E20 as beneficial for reducing India's ₹22 lakh crore annual fuel import bill.
