In 2026, the electric two-wheeler (2W EV) environment in India remains dynamic as the government has been prioritizing electrification among the top-performing major OEMs, and calls in the industry increase to clarify incentives needed to support the industry’s future growth.
Government Push in Advance of Budget 2026
With the Union Budget 2026 about to pitch the EV policies in the coming financial year, stakeholders in the auto industry are encouraging the government to increase financial incentives for EVs and provide clarity in GST structures and electrification assistance in rural areas.
Industry groups insist that there are clear incentives and regulations that will open the door to a higher adoption of electric scooters and motorcycles throughout urban and semi-urban parts of India.
Demand Highlights by Quarterly Gains of OEMs
Manufacturers have announced positive quarterly performance, and TVS Motor Company experienced a significant increase in profits as two-wheeler and EV sales have increased, and consumers show an increasing interest in electrified models and lead to increasing demand.
This show highlights the strength of the 2W EV market segment in the backdrop of larger economic strains and supply issues confronting the auto industry.
Electric Two-Wheeler Registrations Soar
Recent statistics indicate that the electric two-wheeler market in India is continuing to record good momentum with more than 1.27 million registrations in 2025, and TVS Motor is becoming one of the market leaders with a large percentage of the growth.
Analysts point out that scooters are the main ones ruling the sector, but the formidable threat of new entrants and older competitors is creating an increasingly dynamic environment.
Problems and Future Prognosis
Although 2W EV has positive demand signals, the sector struggles with supply challenges such as the shortage of rare earth magnets, lack of superior charging facilities, and enticing financing opportunities.
The industry is still hopeful of the long-term growth in an Indian electric mobility transition, as manufacturers are demanding policy backing even before the national budget.
