New Delhi: Uncertainty in petrol and diesel prices, triggered by the Iran conflict and disruptions in oil supply chains, is pushing more Indian consumers toward electric vehicles (EVs), with many viewing them as a safeguard against rising fuel costs, NDTV reported.
Over the past month, EV makers and industry players have reported a rise in enquiries, stronger bookings and, in some cases, faster registrations. Data from the Vahan portal shows that EV registrations in March recorded strong year-on-year growth, with electric car sales rising nearly 49% and electric two-wheelers up about 36%.
In monthly terms, 19,711 electric cars were sold in March 2026, compared with 13,733 units in February, marking a 43.5% increase. Electric two-wheeler sales rose to 1,77,485 units from 1,11,680 units in the previous month, registering a 58.9% jump.
Industry officials said a significant part of the recent increase in demand is linked to global uncertainty around crude oil prices. At the same time, they noted that the trend varies across companies and segments.
Market data indicates that EV demand typically strengthens toward the end of the financial year, but the current spike has been supported by concerns over possible fuel price hikes and policy changes.
Industry players said fuel price volatility is speeding up purchase decisions, especially among commercial users. Hari Krishna, founder and chief executive of Green Drive Mobility, said the company saw a sharp rise in enquiries within days of recent fuel price fluctuations, leading to a backlog of orders. He added that unstable fuel prices are prompting faster adoption of EVs, particularly among fleet operators.
Sahil Jindal, co-founder of Trevel, said interest from ride-hailing drivers has been rising steadily, as fuel costs directly affect their earnings. He noted that EVs are increasingly seen as a way to avoid fluctuations in fuel prices.
Gunjan Malhotra, co-founder of Komaki Electric Vehicles, said enquiries and bookings doubled in March compared with February, as more consumers looked for cost-effective alternatives.
However, industry leaders said fuel price concerns are only one of the factors driving demand. Mohal Lalbhai, founder and chief executive of MATTER, said buyers are also focusing on overall ownership costs and long-term savings. The company reported a sharp rise in enquiries and bookings in recent weeks, with demand exceeding supply.
Bharat Bala, chief executive of AMP EV, said EVs offer more predictable running costs, often significantly lower than conventional vehicles, making them attractive during periods of fuel price swings. He added that long-term growth will depend on improvements in financing, leasing options and charging infrastructure.
Retail players also reported a shift in consumer behaviour. Himanshu Arya, founder of Luxury Cart, said rising fuel price uncertainty is influencing buying decisions, with both enquiries and bookings increasing.
While the EV market continues to grow, industry insiders cautioned that challenges remain. Charging infrastructure outside major cities is still limited, and issues related to charging speed and reliability persist. High upfront costs and limited financing options also continue to hold back some buyers.
They said addressing these structural issues will be key to converting rising interest in EVs into sustained adoption over the long term.
