KATHMANDU: Growing demand for electric vehicles in India has put pressure on major manufacturers to increase production. Mahindra, Tata Motors, Ather Energy and Bajaj Auto are facing capacity constraints as orders continue to rise.
Higher EV sales, supply chain issues and low dealer stocks have made it difficult for companies to meet demand. Manufacturers are now working to expand production and reduce delivery waiting periods.
According to Vahan data, EVs accounted for 10.7% of total vehicle registrations in India. Electric cars held an 8.5% share of passenger vehicle registrations in September 2026, while electric two-wheelers accounted for 11.6%. Electric three-wheelers had a much higher share of 64.9%.
Tata Motors Passenger Vehicles, which holds nearly 40% of India’s electric car market, has seen bookings increase 2.5 times since February 2026. The Punch EV and Nexon EV have been the main drivers of this growth.
Tata increased EV production by nearly 40% in the second quarter of FY2027 and recorded wholesale sales of more than 47,000 units. However, demand remains higher than available supply, pushing the company to work with suppliers to increase production.
Meanwhile, Maruti Suzuki has started operations at a dedicated facility in Hansalpur, Gujarat. The plant has an annual production capacity of 250,000 units and will manufacture the e Vitara electric SUV.
Two-wheeler makers expand production capacity
Electric two-wheeler makers are also facing rising demand. Ather Energy has delayed the entry-level Konarc variant due to supply issues. Waiting periods have crossed two months in some markets. The company plans to increase its annual production capacity by 225,000 units.
Hero MotoCorp aims to increase monthly EV production from 15,000 units to 45,000 units by the end of FY2027. Bajaj Auto plans to raise Chetak electric scooter production capacity to 80,000 units per month.
Similarly, TVS Motor is investing to add annual production capacity of 1.5 million electric two-wheelers and three-wheelers by mid-2027.
The expansion plans show how quickly India’s EV market is growing. Manufacturers are now focusing on increasing production to meet demand and reduce delivery delays.
