India's electric vehicle (EV) market ended FY26 on a high note, with electric car and two-wheeler sales hitting record monthly highs in March, driven by sustained demand momentum and new product launches, according to industry stakeholders.

According to data sourced from the government's Vahan portal, electric car retails rose to 21,528 units in March, marking a 56.8% increase from 13,733 units in February. Electric two-wheeler sales jumped 70.9% to 1,90,941 units, compared with 1,11,709 units in the previous month.

The industry stakeholders told Moneycontrol that EV buying decisions are being driven primarily by product availability, pricing and improving value proposition, with the March spike reflecting a year-end acceleration in an already growing market rather than any immediate shift linked to concerns around fuel availability.

Electric car sales crossed the 15,000-unit mark in multiple months during the year, while electric two-wheelers maintained a consistent run rate of over 1,00,000 units for most months before accelerating sharply in the final quarter.

For FY26, electric car retails stood at 1,87,549 units, while electric two-wheeler sales reached 13,92,787 units. On a quarterly basis, January-March was the strongest period for both segments, with electric car sales at 53,731 units and electric two-wheelers at 4,25,462 units -- the highest quarterly contribution to annual volumes.

March alone contributed around 11.5% of annual electric car sales and nearly 13.7% of electric two-wheeler sales, reflecting a strong year-end push.

Company executives said rising enquiries and bookings throughout the year translated into higher conversions in the final quarter. They attributed the growth to expanding product choices, with a wider range of offerings now available across entry-level and premium segments, as well as increased participation from automakers.