When the EV ride-hailing major BluSmart broke down in April 2025 due to financial and governance distress, many were stunned that a company known for its strong service quality and compelling value proposition had several cracks in its raft.

The same is true for Log9 Materials, which had been showing signs of strain for over a year — slowing momentum, strategic missteps, and increasing debts. Then, Ola Electric’s market share began to shrink, as legacy giants like TVS Motor and Bajaj Auto, as well as Ather Energy, overtook the electric two-wheeler maker that once dominated the country’s EV landscape.

In many ways, these events were not isolated shocks but the culmination of a trajectory set in motion much earlier. After the extreme lows and hype cycles of 2023 and 2024, the current year became a year of reckoning and correction for the Indian EV space.

However, if there has been one recurring theme in 2025, it is that the EV space is now being claimed not by the loudest players, but by companies with deeper tech, supply chain maturity, stronger unit economics, and disciplined innovative and scaling strategies.

Now, with 2025 coming to an end, the upcoming year is expected to set some important milestones for the sector. Industry leaders believe that 2026 will be defined by more innovation in battery technology, legacy auto players’ strengthening playbook across segments, and quick commerce growth, pushing the deployment of more electric three-wheelers on the road.

The industry is also awaiting policies to tighten further to curb the unregulated entry of Chinese EVs into the market.

An ace EV investor and the founder of AdvantEdge VC, Kunal Khattar, told Inc42 that the ecosystem will start witnessing a clear differentiation between complete knock-down (CKD) assemblers and true product engineering companies.

“…besides, investors, government, customers and the ecosystem will value better corporate governance, world-class technology and a customer-first culture.”

So, how will 2026 mark a turning point in the country’s maturing EV space? Let’s explore at scale…

Consolidations To Reshape Two-Wheeler EV Market

The three-wheeler segment has already seen consolidation over the years, which is expected to continue. Industry experts see more consolidations taking place in the electric two-wheeler segment.

According to the founder and CEO of Omega Seiki, Uday Narang, much like the three-wheeler segment, where tighter safety norms, rising compliance costs, and the need for better product reliability have naturally pushed out smaller, unsustainable players, the electric two-wheeler market is now entering a similar phase.

“With margin pressure increasing, subsidies rationalising, and customers demanding safer, better-quality products, the weaker companies........

© Inc42