Higher fuel prices in India are accelerating the transition to electric vehicles, as steady demand for cars and two-wheelers persists, notes Elara Capital's Jay Kale.
Rising fuel costs in India are accelerating EV adoption, with Elara Capital forecasting 2-3% annual penetration growth over the next four to five years across two-wheelers and passenger vehicles. For tech and mobility stack decisions, the 6-8% FY27 EV sector growth projection signals a durable demand shift worth factoring into fleet, charging infrastructure, and embedded software roadmaps.
Higher petrol and diesel costs are likely to sway consumers
May 25, 2026
01:16 pm
What's the storyRising fuel prices in India could lead to a faster shift toward electric vehicles (EVs), according to Jay Kale, Executive Vice President of Research at Elara Capital.
Kale said that higher petrol and diesel costs are likely to sway consumers who were already considering making the switch.
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