Carmakers Hedge On EVs: Why Less Than Half Of FY26 Launches Are Electric
Indian automakers are refusing to go all-in on electric. Fresh product plans show less than half of new car launches lined up for this financial year are EVs, with Maruti, Hyundai, Kia and others continuing parallel investment in petrol, diesel, hybrid, CNG and flex-fuel platforms even as EV demand climbs on higher fuel prices.
What was announced
An ETAuto report dated May 31, 2026 lays out how Indian carmakers are responding to the EV upswing: by diversifying rather than committing. Product plans across leading manufacturers show that less than half of the new launches scheduled for FY26 are electric. The rest of the pipeline is split across petrol, diesel, strong hybrids, CNG, and flex-fuel models, with cleaner combustion tech continuing to attract fresh R&D rupees.
Less than half of FY26 launches being electric is not hesitation, it is Indian carmakers refusing to bet the company on a transition the buyer has not committed to.
The trigger for rising EV interest is straightforward: petrol and diesel pump prices have climbed sharply, pushing more buyers to at least shortlist an EV. Yet automakers are not convinced this signal is permanent. Maruti Suzuki is launching the e-Vitara while simultaneously expanding CNG across the Brezza, Swift and Ertiga lineup. Hyundai is pairing the Creta Electric with refreshed petrol and diesel Cretas. Kia is running EV6 and EV9 imports alongside Sonet, Seltos and Carens ICE updates. Toyota and Honda are leaning harder on strong hybrids than on pure EVs.
The cost of this approach is real. Companies and their suppliers must support parallel product lines, parallel tooling, and parallel sourcing chains, spreading capital across battery packs, engine families, CNG kits and hybrid transaxles at the same time. The report frames this as risk reduction: nobody wants to be the carmaker that bet the company on the wrong technology while the Indian buyer was still making up their mind.
The Car Jury verdict
The hedge is rational, not timid. India's EV share is rising, but charging coverage outside metros is patchy, resale values are unproven, and a single fuel price cut can reshuffle the order book overnight. Backing five powertrains at once is expensive, but backing only one is reckless. Maruti's own playbook tells the story: the e-Vitara arrives as a WAIT while the Brezza CNG and Swift keep the cash registers ringing. Hyundai is running the same calculus around the Creta.
Rachit Hirani of MotorOctane captured the mood neatly when he noted that brands are now "launching EVs alongside ICE," not instead of them. For buyers, that means more choice and slower price drops on EVs, because no manufacturer is being forced to fire-sale electrons to clear stock.