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[BUSINESS] · India · 5 sources

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Part of situation: India auto market expands SUV, EV, and cleaner-fuel segments (63 clusters)

India vehicle and quick commerce markets see significant shifts

India automotive market electric two-wheelers quick commerce SUV registrations EV adoption

India is experiencing a transformation across its automotive and quick-commerce sectors. Passenger-vehicle retail registrations rose 22% year-on-year from October 2025 to September 2026, reaching approximately 5.35 million units. This growth was led by utility vehicles, which grew 25.3%, and mid-size SUVs, which saw a 42.4% increase. Conversely, the separately listed sedan category declined by 19.6%.

The electric two-wheeler market is also expanding rapidly, with electric vehicles accounting for 9.9% of all two-wheeler sales in the first five months of FY27, up from 5.5% in FY24. Research from Boston Consulting Group indicates that approximately 180,000 Indians are purchasing their first electric two-wheeler every month. Growth is being driven by two primary segments: full-time quick-commerce and food-delivery riders, and Gen Z consumers in non-metro cities.

Simultaneously, the quick-commerce industry is shifting toward operational discipline and geographical expansion. To scale into Tier-2 and Tier-3 cities while managing capital expenditures, companies are moving away from self-funded networks toward franchise-led models, shared fulfillment facilities, and neighborhood retail partnerships.

Entities

Boston Consulting Group · CBRE · Hero MotoCorp · India · Jefferies · Odisha

Claims

What the coverage asserts, and how many sources carry each claim.

  • [● 2 SOURCES] The quick-commerce market in India grew from $0.75 billion in 2022 to $8 billion in 2025. newsable.asianetnews.com · www.deccanchronicle.com
  • [○ 1 SOURCE] Approximately 1.8 lakh Indians buy their first electric two-wheeler every month. www.deccanchronicle.com
  • [○ 1 SOURCE] The PM E-Drive scheme replaced the FAME II scheme in 2024. www.deccanchronicle.com
  • [○ 1 SOURCE] 65% to 70% of active dark stores are located in India's top eight metropolitan centers. kalingatv.com
  • [○ 1 SOURCE] Electric scooters grew at a 54% CAGR between FY22 and FY26. www.deccanchronicle.com
  • [○ 1 SOURCE] Quick-commerce operators are using franchise models to expand into Tier-2 and Tier-3 cities. kalingatv.com
  • [○ 1 SOURCE] Electric two-wheelers accounted for 9.9% of all two-wheeler sales in the period of April–August 2026. www.deccanchronicle.com
  • [○ 1 SOURCE] Electric scooter penetration rose from 16.8% to 24.1%. www.deccanchronicle.com

Sources

India passenger-vehicle registrations rise 22%: SUVs lead, but growth is uneven [autos.maxabout.com]
Hero MotoCorp eyes to expand Odisha footprint, banks on festive demand, EV push - Prameya News [www.prameyanews.com]
Quick Commerce and Gen Z Propel India Electric Two Wheeler Expansion [newsable.asianetnews.com]
How Franchise Dark Stores Are Fueling India’s Quick Commerce Boom by 2030 [kalingatv.com]
E-two Wheeler Sales Share Double In 3 Years [www.deccanchronicle.com]