India EV Two-Wheeler Sales Surge 40% in September; Bajaj Leads with 64.9% Market Share

• India’s electric three-wheeler (e3W) segment surged 40% in September 2026
• Bajaj Auto leads the market with 64.9% share, followed by Mahindra and TVS
• The sales spike signals accelerating EV adoption in commercial mobility segments

India’s electric three-wheeler segment delivered a standout September, with total sales surging 40% year-on-year as fleet operators and last-mile delivery companies accelerated their switch from combustion-engine vehicles. Bajaj Auto dominated the segment with a 64.9% market share, reflecting its early mover advantage in the commercial EV segment and its established distribution network across Tier-2 and Tier-3 cities. Mahindra and TVS followed as the second and third largest players, with both companies investing in capacity expansion to capture growing demand.

The 40% September growth rate is notable not merely as a cyclical uptick but as evidence that India’s EV commercial vehicle transition has reached an inflection point. Government subsidy programmes, rising petrol costs, and lower total cost of ownership for electric fleet operators have combined to accelerate purchase decisions among small logistics operators. Bajaj’s market share dominance gives it pricing power and scale advantages in battery procurement and service network density that competitors will struggle to replicate in the near term.

For investors in Bajaj Auto, the e3W growth data provides a meaningful supplementary revenue stream beyond its dominant two-wheeler motorcycle business. Mahindra’s EV ambitions in the three-wheeler segment also feed into its broader EV narrative alongside the XEV SUV line. TVS Motor is the third player to watch as it scales production. Broader implications include battery supply chain beneficiaries such as Amara Raja Energy and Exide Industries, who supply storage systems for commercial EVs across the growing fleet.

Source: The Hindu BusinessLine | Market News synthesis