Step aside Tesla, BYD: Japanese carmakers deepen their hold on India's auto market with hybrids

hybrids are taking over india's car market, not electric vehicles. hybrids are expected to make up 10% of total car sales by march 2027, while evs are projected at just 5%. sales of hybrids jumped nearly fourfold to 362,866 units in the year to march 2026, up from 98,010 in march 2020. ev sales were 131,865 units for the same period. this shift has cemented the position of japanese carmakers already dominant in india. toyota and maruti suzuki lead in hybrids with models like the innova hycross and grand vitara. maruti sold over 1.8 million cars in the year to march 2026, including 20,466 strong hybrids. toyota sold 366,896 cars, with 91,536 strong hybrids. analysts note hybrids require no change in behavior—you refuel at a pump—and avoid ev range anxiety. global ev leaders tesla and byd have barely made a dent. since 2025, tesla has sold fewer than 400 cars in india and byd less than 7,000. even in india's ev space, local firms mahindra and tata lead. more hybrid launches are expected in the next year than in the past five combined, with hyundai, kia, renault, and honda all planning new models.