VinFast to erickshaw startups: New entrants reshape Indian EV landscape

India's automobile sector saw 480 new entrants in FY26, up 37 per cent year-on-year, with electric vehicle makers dominating registrations across categories amid policy support

Amid the success of new firms like Vietnamese automaker VinFast that rolled out its 10,000th vehicle from its Tamil Nadu plant, and global giant Tesla’s fanfare in India in the last one year, the country’s automobile industry is seeing a huge wave of new entrants.

 

Their numbers have reached a staggering 480 across vehicle categories in 2025-26, up 37 per cent from 350 in the previous financial year.

 

Thanks to the policy push, improving infrastructure, and rising conventional fuel costs, the majority of them are electric vehicles (EVs). 

According to data shared by Envirocatalysts, in two-wheelers alone, a total of 27 new companies entered the Indian market in 2025-26, of which 96 per cent, or 26, are electric vehicles.

 

In certain segments like e-rickshaw, the number of new entrants was seen at around 104.

 

The new vehicle sellers include those who are manufacturing or assembling them in India and the ones who are importing them too.

 

Industry experts highlight that though there is an influx of new players, brand reputation still matters. Examples of success include VinFast in four wheelers, Kinetic Watts & Volts in two wheelers, and JM-Baxi Group-backed Energy In Motion in goods carriers which have already stormed into the top 10.

 

“Majority of the new entrants are in EVs. In two-wheelers, out of 27 new entrants, only one company Lambretta had an internal combustion engine (ICE) vehicle. There are a lot of examples among these companies that indicate that market reputation matters. In buses for instance, institutional buyers go for known names,” said Sunil Dahiya, founder and lead analyst, Envirocatalysts.

 

Amid all the numbers, there is certain data that indicate that all these registrations may not be a success story.

 

Among the domestic two-wheeler players, Kinetic Watts and Volts did well in the electric shift, securing 262 units. “While legacy players have done well, several new entrants have also been successful, and even today, half of the market leaders are relatively new-age brands. A successful EV company is able to attract private investors, while publicly-listed EV companies continue to receive strong valuations from the market,” said Ajinkya Firodia, vice-chairman and managing director, Kinetic Watts and Volts.

 

Technology becoming more accessible and an improved supplier ecosystem are also supporting the EV industry.

Take the case of e-rickshaws, Envirocatalysts data indicates that out of 104 new companies, only 26 have sold more than 100 vehicles in 2025-26.

 

Around 31 of these new entrants have sold less than 10 vehicles, and 51 have sold less than 20 vehicles only.

 

Out of the 26 vehicles that sold over 100 vehicles, only two, Neptune Green Energy (1,006 units) and Navya Electric Vehicle (964 units), have more than 500 registrations. This reveals that either the majority of these e-rickshaw companies are operating in small cities or they may be just assembling an imported vehicle. 

Energy In Motion registered 187 units, all EVs, in 2025-26, storming into the top-10 list for all electric goods carriers nationwide.

 

Another new maker, Jupiter Electric Mobility, also joined the top-10 list with 103 registrations. 

However, the influx of new players may not last long. “In the next three to five years, you will see new entrants coming in. Then a lot of consolidation will happen. Some players will be taken over or will disappear from the market. Then a few players will take a larger share. The issue is also because of the cost attached to this; the companies require more distributors and more money to spend,” Dahiya said. 

Though government policy support resulted in the boom, there are still concerns that need to be addressed.

 

“Policy support as a catalyst was certainly true five years ago. However, subsidies have since reduced, and there remains some uncertainty regarding their continuation in the future. The production-linked incentive (PLI) scheme is only designed for larger players having a turnover of over ₹10,000 crore, which makes entry for new players difficult,” Firodia said.

 

These companies are also betting big on plans by states like Delhi to ban ICE vehicles.

 

“Such developments give startups and entrepreneurs confidence that government support for EVs will continue, evolve, and potentially become more inclusive for newer and smaller players,” he added. 

Revving up

• In two-wheelers, out of 27 new makers, 26 focused exclusively on electric vehicles
• 104 new makers entered in e-rickshaw category, while only two — Neptune Green Energy, and Navya Electric Vehicle — crossed 500 mark
• In goods carrier, Energy In Motion and Jupiter Electric Mobility stormed into top 10 in less than a year
• VinFast and Tesla captured consumer attention in four wheelers

Source: Envirocatalysts