Unpacking 4W electrification | Mass-market segment lags

We examined the four-wheeler (4W) segment in Telangana to understand how vehicle pricing factors into EV adoption. Between February 2025 and January 2026, the state’s car market, totalling 183,213 units, revealed a stark contrast in penetration rates across different price brackets.

Car Sales by Price Range | Telangana 4W Sales Data – Feb 2025 to Jan 2026

Source: EVreporter Intelligence | Telangana Regional Transport portal.

The mass-market segment (up to ₹15 Lakh) remains overwhelmingly dominated by ICE vehicles with only 2.8% EV penetration. The ₹15 – ₹30 Lakh range has emerged as the primary volume driver for EVs in the state, contributing 13,336 electric units during this 12-month period and 29.5% EV penetration. The premium category (above ₹30 Lakh) is achieving a remarkable 46.2% EV penetration.

• The total car market in Telangana for this period reached 183,213 units, comprising 20,596 electric vehicles and 162,617 ICE vehicles. The overall EV penetration is passenger car category in Telangana during the period was 11.2%

• Mass Market Resistance: The entry-level and mass-market segment (cars up to ₹15 Lakh) remained heavily dominated by ICE vehicles, which account for 126,565 sales. This segment has the lowest EV penetration at just 2.8%, despite being the largest category by total volume (130,252 units).

• Volume Leader for EV Sales: The ₹15 – ₹30 Lakh price range is the primary driver for EV volume in the state, contributing 13,336 electric units and achieving a substantial 29.5% penetration. In the 15–30 lakh passenger car segment, VinFast sold 215 units, while Maruti Suzuki sold 11 units.

• The segment of cars priced above ₹30 Lakh has the highest electrification rate at 46.2%, with 3,573 EV units sold out of 7,730 total sales. In the luxury car segment, Mahindra XUV 9e led with 1,535 unit sales, followed by BYD with 641 units, and BMW sold 398 units.

This stark contrast in electrification—peaking at 46.2% in the premium segment but falling to just 2.8% in the mass market—is largely driven by the limited selection of electric vehicle models currently available in the affordable price bracket. The mass-market segment remains the largest volume driver in Telangana, accounting for 130,252 total sales.

These findings highlight a significant, untapped opportunity for manufacturers to introduce more electric models in the sub-₹15 Lakh range to drive broader adoption across the market.

Also read: India’s electric car sales zoom past the 1,00,000 mark in the current FY 2025-26