India’s biggest carmakers are ramping up electric vehicle production as fuel hikes tied to the Iran conflict accelerate demand. Mahindra & Mahindra plans to lift output from 8,000 to 12,000 EVs a month within six months, while Tata Motors targets a jump from 9,000 to 10,000 units.

The first‑quarter 2026 data from the International Energy Agency shows a 65% year‑on‑year rise in Indian EV sales, topping 55,000 units. Mumbai‑based chief executive Anish Shah noted that the company could hit a 30% EV share in its portfolio earlier than the 2030 target, thanks to the current price shock.

Despite the surge, EVs still account for under 4% of total car sales, far below India’s 30% 2030 goal. Nomura analysts point to limited charging infrastructure—only one station per 235 vehicles—as a bottleneck that must grow alongside demand.

India’s oil imports, the world’s third‑largest, have felt the Gulf shock more than ever, prompting four price hikes since the war began and pushing automakers to invest in cleaner mobility.