India’s electric passenger vehicle market could witness significant growth over the next year, with Union Minister for Road Transport and Highways Nitin Gadkari predicting that electric vehicles (EVs) could account for 35-40% of car sales in the country by 2027. His projection reflects growing confidence in India’s transition towards cleaner mobility, supported by rising EV registrations and increasing interest from consumers and automakers.
Gadkari’s statement comes at a time when India’s electric car market is gaining momentum despite relatively slow growth in the broader passenger vehicle industry. According to industry data reported by JATO Dynamics, electric vehicle registrations increased by 74.7% in October 2026, while registrations of non-electric vehicles declined by 17.9%.
The growing demand has also improved electric vehicle penetration in India’s passenger vehicle market. EV penetration nearly doubled from 3.6% to 7.3% within a year, indicating a gradual shift in consumer preferences towards electric mobility.
Tata Motors and Mahindra Drive Electric Car Growth
Domestic automakers Tata Motors and Mahindra have played an important role in expanding India’s electric passenger vehicle market. Both manufacturers recorded substantial growth in their EV registrations during October 2026.
Tata Motors reported a 76.3% increase in electric vehicle registrations, while Mahindra recorded an impressive 84.2% growth. Their expanding electric vehicle portfolios, new product introductions and growing customer interest are contributing to the development of India’s EV ecosystem.
The entry of additional manufacturers and the introduction of new electric car models are also expected to strengthen competition. As automakers expand their offerings across different price segments, customers could have more choices when considering the switch to electric vehicles.
Gadkari Highlights Need for Energy Independence
While discussing India’s future energy requirements, Gadkari emphasised the importance of reducing dependence on imported fossil fuels. Rising international energy prices and geopolitical conflicts, including tensions in West Asia and the Russia-Ukraine war, have highlighted the need for alternative energy sources.
He also identified green hydrogen as an important future fuel and expressed confidence that India could become a net exporter of clean hydrogen.
According to the minister, electric mobility, green hydrogen and biofuels could collectively contribute to India’s long-term energy security and sustainability objectives.
Flex-Fuel Vehicles Also Gaining Attention
Alongside electric mobility, Gadkari highlighted the growing development of flex-fuel vehicles in India. He stated that Toyota is preparing to introduce a flex-fuel version of the Innova capable of operating on E100 fuel, which contains nearly 100% ethanol.
Maruti Suzuki has also introduced its Wagon R Flex Fuel, which is designed to operate on ethanol-petrol blends ranging from E20 to E100. Tata Motors and Hyundai are among the other manufacturers exploring flex-fuel technologies.
The Ministry of Road Transport and Highways (MoRTH) has also notified amendments to the Central Motor Vehicles Rules to accommodate vehicles compatible with higher ethanol blends, including E85 and E100. However, these fuels can only be used in vehicles specifically designed and certified for them.
India’s Electric Mobility Transition
Gadkari’s projection of 35-40% electric car sales by 2027 highlights the growing expectations surrounding India’s EV industry. Stronger demand, expanding vehicle choices, improving battery technology and charging infrastructure development will remain important factors in determining the pace of adoption.
Although achieving this target will require continued efforts from automakers, policymakers and charging infrastructure providers, the recent increase in EV registrations indicates positive momentum.
With electric mobility and alternative fuel technologies receiving greater attention, India is moving towards a more diversified and sustainable transportation ecosystem.
