EV demand surges 20 25% amid West Asia war: Shailesh Chandra

The Indian passenger vehicle industry saw a sharp rise in demand for electric vehicles in March amid the ongoing West Asia war, according to a top industry executive.

Shailesh Chandra, the president of Society of Indian Automobile Manufacturers (SIAM), said Tata Motors Passenger Vehicles, which he leads as the managing director and CEO, saw 20-25% jump in EV demand due to the West Asia war in March.

“I can clearly see in passenger vehicles, there was a sharp rise in demand in March,” Chandra told reporters.

There was an apprehension of a fuel price hike in the future due to the ongoing war, says Chandra. “So far, we have not seen the rise in fuel prices. But when you see countries in Europe have really seen the effect of increased fuel prices. If fuel prices increase, I think there will be an uptick in electric vehicle demand. We are already seeing that,” Chandra says, adding that the war is playing a very significant part in rising demand for EVs.

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Passenger vehicle sales clocked their highest ever sales of 4.64 million units in the financial year 2025-26, posting a growth of 7.9%, as compared to the previous fiscal year. Car sales rose 16% year-on-year in March 2026 to 442,000 units.

“This robust performance was supported by improved affordability following the GST rate reduction, enhanced purchasing power from personal income tax relief, and lower financing costs due to successive repo rate cuts by RBI,” SIAM said in a statement.

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The second half of 2025-26 posted a robust growth of 16.7% compared to 2024-25, whereas there was de-growth of 1.4% year-on-year in H1 in 2025-26. Registration of electric cars rose by more than 83% in FY26, compared to previous years.

However, uncertainties arising from the West Asia conflict, particularly prices of crude oil and commodities, higher exchange rates and disruptions in shipping routes, remain a concern for the auto sector, the automobile industry association said.