In line with developed markets where hybrid cars have long been the new norm, India is witnessing a surge in demand for partially electric cars
Hybrid cars are steadily gaining momentum in India as choices for locally produced models grow. In the first quarter of FY2026, these partially electrified cars recorded solid growth, indicating a continued rise in their consumer acceptance in our market.
Three automakers manufacture hybrid cars in India, offering the sustainable yet practical electrification technology for an accessible price: Toyota Kirloskar Motor (TKM), Maruti Suzuki, and Honda. Toyota is the leading brand when it comes to hybrid cars globally, and even in India, it ranks number one.
TKM sold 21,489 hybrid cars in Q1 FY2026, securing an 81% market share in the category. Compared to 10,745 units delivered in the same period last fiscal, it recorded an impressive growth of 100% or 10,744 units to be specific. The company offers two locally manufactured hybrid cars—Urban Cruiser Hyryder and Innova Hycross—and also two imported ones—Camry (CKD) and Vellfire (CBU).
| Carmaker | Q1 FY2026 | Q1 FY2025 | Difference |
| Toyota | 21,489 | 10,745 | +100% |
| Maruti | 4,745 | 1,307 | +263% |
| Honda | 226 | 59 | +283 |
| Total | 26,460 | 12,111 | +118% |
While TKM nearly doubled the sales of hybrid cars in the first quarter of the current fiscal year, Maruti Suzuki saw over a two-fold increase and occupied an 18% market share. The company shipped 4,745 units during the April 2025-June 2025 period, 3,438 units or 263% more than in Q1 FY2025. It offers only two hybrid cars, both manufactured by TKM: Urban Cruiser Hyryder and Invicto.
In the third position was Honda, which has only one hybrid car in its showrooms, namely the City e:HEV. While the company does manufacture the hybrid sedan in India, the localisation level is pretty low, which makes the car significantly more expensive than the regular City and out of reach for most Indians. The diminishing popularity of sedans in this segment doesn’t help either. The Japanese automaker sold 226 units of the City e:HEV in Q1 FY2026, recording a 283% year-over-year growth (Q1 FY2025: 59 units). It held the same minuscule market share as in FY2025 – 1% In total, 26,460 hybrid cars were sold in India in Q1 FY2026, 14,349 units or 118% more than in Q1 FY2205 (12,111 units). The Toyota Innova Hycross, even though being the most expensive hybrid car made in India, was the no.1 model on the sales chart.