Telangana Among India's Leading EV Markets as Electric Vehicle Adoption Accelerates

HYDERABAD: Electric vehicle adoption is gaining ground in India, with Telangana emerging as one of the leading states for electric passenger vehicles, according to a market analysis by Japanese brokerage firm Nomura reported by The Financial Express on October 16, 2026.

The report said electric vehicles accounted for 7.9% of India's passenger-vehicle retail sales in September 2026, while electric models represented 11.6% of two-wheeler retail sales. These figures point to growing interest in electric mobility, although adoption levels vary across vehicle categories and states.

Telangana records a strong passenger-EV share

Telangana accounted for 21% of passenger-vehicle retail sales being electric in September, according to the report. Delhi led at 21.9%, followed by Telangana at 21% and Odisha at 17%.

The two-wheeler market showed a different pattern. Odisha led electric two-wheeler adoption at 23%, followed by Karnataka at 19.3% and Goa at 17.5%. The report also said electric models accounted for one-quarter of scooter sales in September, with Madhya Pradesh, Odisha and Rajasthan among the leading states.

Electric three-wheelers have recorded a more advanced shift, with electric models representing more than half of sales in the L5 three-wheeler category, according to the analysis.

Fuel costs influence the running-cost comparison

The report highlighted the role of operating expenses in consumers' vehicle choices. Higher petrol, diesel and CNG prices have increased attention on the running costs of electric vehicles.

For example, the analysis compared the TVS iQube electric scooter with a petrol scooter and the electric Tata Punch with its petrol counterpart. Its calculations suggested that the higher initial cost of an electric vehicle can be offset over time through lower energy expenses, depending on daily distance travelled and other assumptions.

However, the actual savings vary according to the purchase price, electricity tariff, fuel prices, charging access, maintenance, financing costs and resale value. Buyers should calculate costs using their own driving patterns rather than relying solely on an estimated payback period.

Charging infrastructure and government incentives

The report also highlighted the expansion of charging infrastructure. The number of charging stations at fuel retail outlets reportedly rose to approximately 29,500 in June 2026, compared with around 4,100 in September 2022.

State-level tax incentives and other policy measures have also supported EV adoption in some markets. Eligibility and benefits differ according to the state, vehicle category and applicable policy conditions.

Industry outlook

Nomura expects electric vehicles to gain a larger share of India's vehicle market by FY2030. Its projections suggest that EVs could account for 12.7% of passenger-vehicle sales, 22% of two-wheeler sales and 70% of three-wheeler sales by that financial year.

These are forecasts rather than guaranteed outcomes. Future adoption will depend on vehicle prices, charging access, battery technology, running costs, consumer preferences and government policy.

For buyers in Telangana, the latest data highlights the growing availability of electric mobility options. Before choosing an EV, consumers should compare the total cost of ownership, charging arrangements, expected daily travel and the warranty terms applicable to the vehicle.

Source: The Financial Express, October 16, 2026, reporting on Nomura's electric-vehicle market analysis.

Editorial note: Market shares and future adoption figures are attributed to the cited report. Forecasts should not be presented as confirmed future sales.