Indian EV Makers Hit Production Ceilings Amid Surging Consumer Demand
Accelerating market adoption of electric vehicles is placing operational pressure on Indian automakers struggling to fulfill customer orders amid manufacturing bottlenecks, Team-BHP reported. According to official Vahan registration data, overall electric vehicle penetration has reached 10.7%, with electric cars representing 8.5% of passenger vehicle registrations and electric two-wheelers securing an 11.6% market share, Team-BHP noted. The sustained influx of customer bookings across festive delivery cycles has depleted dealership inventories to lean thresholds, leaving major vehicle manufacturers operating at full factory capacity. Automakers across passenger car and two-wheeler segments are actively expanding assembly operations to mitigate delivery delays during peak demand periods.
Mahindra Production Ceilings and Demand Shortfalls
In the passenger vehicle segment, Mahindra Electric Automobile has reached its structural production ceiling of approximately 8,000 electric vehicles per month, shattered.io reported. Automotive business managing director R. Velusamy stated that monthly customer demand for Mahindra electric SUVs stands between 10,000 and 11,000 units, tech-insider.org reported. Velusamy indicated that the company could comfortably deliver an additional 2,000 to 3,000 vehicles each month if supply chain constraints were absent. To alleviate persistent delivery bottlenecks, the automaker is working to scale monthly electric sport utility vehicle assembly to 12,000 vehicles before the fiscal cycle concludes, shattered.io noted.
Chief Business Officer Ravneet S Phokela stated that the Maharashtra plant's first phase would go live around December 2026, requiring four to six months to reach full capacity.
Ather Energy stated that with adequate production, it could have sold an additional 13,000 to 15,000 scooters a month.
Tata Motors Electric Penetration and Order Multiples
Market leader Tata Motors Passenger Vehicles, which commands nearly 40% of the domestic electric car market, faces similar capacity constraints, Team-BHP reported. Managing director Shailesh Chandra observed that current consumer demand for electric models is running at nearly three times available factory supply, shattered.io noted. Electric vehicles now account for roughly 25% of Tata's total passenger vehicle sales volume, up from approximately 14% recorded during the prior year, shattered.io reported. Although Tata increased quarterly electric vehicle production by nearly 40% for its popular Punch and Nexon EVs, component vendor lead times continue to constrain showroom deliveries.
Two-Wheeler Capacity Expansions at Ather and Bajaj
The electric two-wheeler industry faces comparable supply shortages as consumer demand outpaces assembly line volume, Team-BHP reported. Ather Energy reportedly experiences an unmet retail demand gap of roughly 18,000 to 20,000 potential unit sales every month due to plant constraints, shattered.io noted. To expand production, Ather is investing to lift annual capacity toward 920,000 units through its upcoming AURIC manufacturing facility in Maharashtra, tech-insider.org reported. Concurrently, Bajaj Auto is scaling monthly Chetak electric scooter manufacturing from approximately 62,000 units toward a target of 80,000 units by the fourth quarter of FY27.
Ather currently produces scooters at its Hosur factory, which possesses an annual manufacturing capacity of 420,000 units, according to Multibagg AI.