India EV Registrations Surpass 1 Million H1 FY26 Amid Passenger EV Sales Dip

India's electric vehicle (EV) market surpassed one million registrations in the first half of fiscal year 2026, reflecting steady overall growth despite a slight decline in monthly registrations in September. Total EV registrations fell to 182,000 units in September, down 3% from August, primarily due to a sharp drop in electric passenger vehicle sales from 18,290 to 15,100 units. Industry experts attribute this decline to recent Goods and Services Tax (GST) reductions on internal combustion engine (ICE) vehicles and hybrids, which widened the price gap with electric models, pulling EV penetration in the passenger segment down from nearly 5% to about 4%. The GST for ICE vehicles was cut from 28% to 18%, and for hybrids from 43% to 40%, while EVs maintain a concessional 5% rate, creating a price-sensitive dilemma for consumers. Meanwhile, electric two- and three-wheeler segments remained stable, with registrations largely unaffected by the tax changes. Analysts emphasize the need for improved charging infrastructure, affordable financing, and greater awareness of total cost of ownership to sustain and grow EV adoption in India.