Passenger vehicle registrations declined 10.2% month-on-month in April to 3,98,146 units, while EV volumes slipped just 1.8%, pushing electric vehicles’ share of the market to a new high of 5.7%, according to Vahan data estimates. Passenger vehicle registrations fell to 3,98,146 units in April after the year-end surge that had lifted March volumes to 4,43,201 units.. In contrast, electric vehicle registrations showed greater resilience. EV volumes stood at 22,677 units in April, down only marginally from 23,097 units in March. With overall passenger vehicle volumes falling faster, EV penetration rose to nearly 5.7% of total passenger vehicle sales, up from about 5.2% the previous month.
PV: Demand cools, Hierarchy holds
The broader market hierarchy remained unchanged despite the slowdown. Maruti Suzuki continued to dominate passenger vehicle retail with 1,58,223 units, accounting for nearly 40% of the market. Tata Motors held second position with 57,472 units, followed by Mahindra & Mahindra at 54,897 units, while Hyundai remained fourth with 47,345 units. Together, the top four automakers accounted for nearly 80% of total retail volumes.
The decline was broad-based, with all major manufacturers reporting lower volumes compared to March. Tata Motors and Mahindra & Mahindra saw steeper drops of over 14%, while Maruti Suzuki’s volumes declined by nearly 10%. Hyundai’s fall was relatively modest at just over 5%.
The data points to a cooling in demand after the year-end push, with no major player registering growth at scale — signalling a pause in momentum across segments, including SUVs.Automakers, however, maintained an optimistic view of underlying demand trends.
Nalinikanth Gollagunta, CEO, Automotive Division, M&M Ltd., said the company achieved SUV sales of 56,331 units in April 2026, a growth of 8%, and total vehicle sales of 94,627 units, up 14% over the same month last year. (M&M’s total vehicle figure includes segments beyond passenger vehicles.
EV gains share as ICE weakens
With overall passenger vehicle volumes falling faster, EV penetration rose to nearly 5.7% of total passenger vehicle sales, up from about 5.2% the previous month.
This dynamic highlights a key feature of the current transition: EVs are gaining market share not through rapid volume growth, but because conventional vehicle sales are slowing more sharply.
Tata Motors led the EV segment with 8,507 units, capturing approximately 37.5% share. Mahindra & Mahindra followed with 5,394 units (23.8%) and MG Motor with 4,978 units (21.9%). The top three players together accounted for over 83% of EV retail volumes.
Breakout: Vinfast emereges
Below the top tier, a new set of challengers is beginning to scale up. VinFast was the standout performer in April, with registrations rising approximately 67% month-on-month to 1,231 units — making it the fastest-growing EV player and pushing it into fourth position. Maruti Suzuki followed closely with 1,222 units, reflecting a steady ramp-up in its electric portfolio.
VinFast’s rise is particularly noteworthy as a pure-play electric vehicle manufacturer. Unlike incumbent automakers, where EV volumes partly offset declines in internal combustion engine sales, VinFast’s growth is entirely within the electric segment. This signals early but meaningful traction for new entrants in India’s EV market.
Positoning: Tata V/s Maruti
The divergence between the broader passenger vehicle market and the EV segment is beginning to reshape competitive positioning at the top of the industry.Tata Motors, which remains the largest EV player while also holding second position in the overall passenger vehicle market, is emerging as one of the best-placed incumbents in the ongoing transition. Maruti Suzuki, while continuing to dominate conventional vehicle retail by a wide margin, is still in the early stages of scaling its EV presence
The shift
The April data suggests that while the passenger vehicle market may be entering a phase of demand moderation, the transition towards electric mobility is continuing at its own pace — driven by steady adoption, improving model availability, and the entry of new challengers.The divergence between slowing ICE demand and steady EV adoption is likely to shape market dynamics in the coming quarters