EV Sales in India Surge 27% in 2024, Just Shy of 2 Million Mark
India’s electric vehicle (EV) market is on a roll, achieving remarkable growth in 2024 with a 26.5% year-on-year increase in sales, according to Vahan data from the Ministry of Road Transport and Highways (MoRTH). By December 29, 2024, EV sales had reached 1.94 million units, up from 1.5 million units in 2023. While the industry narrowly missed the 2 million milestone, the numbers reflect a significant shift toward electric mobility in the country.
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Key Highlights of India’s EV Market in 2024
- EV Penetration Reaches 7.46%
The overall EV penetration in India rose to 7.46% in 2024, compared to 6.39% in 2023. This growth indicates a steady transition toward electric mobility, even as petrol vehicles continue to dominate the market with a 73.69% share of the 26.04 million vehicles sold this year. - Festive Season Boosts Sales
The second half of 2024 saw a surge in EV sales, peaking in October with 219,482 units sold, thanks to festive demand and the launch of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. - Monthly Sales Consistently Above 100,000 Units
Despite a slight dip in November and December, monthly EV sales remained above the 100,000-unit mark, showcasing the growing acceptance of electric vehicles across the country.
PM E-DRIVE Scheme: A Game-Changer for EV Growth
The PM E-DRIVE scheme, launched in 2024, played a pivotal role in driving EV adoption. This initiative reinstated subsidies for cargo electric three-wheelers (e3Ws), which had a significant impact on the market.
- Immediate Impact: Within weeks of the scheme’s launch, 80,546 units of cargo e3Ws were sold, highlighting the demand for affordable and efficient electric mobility solutions.
- Market Potential: The scheme not only boosted sales but also demonstrated the growing market potential for EVs in India, particularly in the commercial and logistics sectors.
The Shift Toward Electric Mobility
While petrol vehicles still dominate the market, the sales ratio of petrol, diesel, hybrid vehicles, and EVs improved significantly in 2024. This trend reflects a gradual but steady shift toward electric mobility, driven by:
- Government Policies and Incentives
- Subsidies under the PM E-DRIVE scheme.
- State-level incentives for EV buyers.
- Investments in EV infrastructure, including charging stations.
- Increased Consumer Awareness
- Rising awareness about the environmental benefits of EVs.
- Lower running costs compared to internal combustion engine (ICE) vehicles.
- Expanding EV Options
- Automakers launched several new EV models in 2024, catering to a wide range of consumers, from budget buyers to premium customers.
Challenges Ahead
Despite the impressive growth, the EV industry in India still faces several challenges:
- Infrastructure Gaps
- Limited availability of charging stations in rural and semi-urban areas.
- Slow progress in building a robust EV charging network.
- High Upfront Costs
- While running costs are lower, the initial purchase price of EVs remains a barrier for many consumers.
- Battery Supply Chain Issues
- Dependence on imports for battery components continues to pose challenges for local manufacturing.
What’s Next for India’s EV Market?
The growth trajectory of India’s EV market is expected to continue in 2025, driven by:
- Increased Government Support: Policies like the PM E-DRIVE scheme and state-level incentives will further boost adoption.
- New EV Launches: Automakers are gearing up to introduce more affordable and feature-rich EVs.
- Improved Infrastructure: Investments in charging networks and battery technology will address key consumer concerns.
With EV penetration already at 7.46%, India is steadily moving toward its goal of achieving 30% EV adoption by 2030.
A Promising Future for EVs in India
India’s EV market has come a long way, with 1.94 million units sold in 2024, marking a 27% growth year-on-year. While the industry narrowly missed the 2 million mark, the numbers reflect a strong shift toward sustainable mobility.
As government policies, consumer awareness, and infrastructure continue to improve, the future of electric vehicles in India looks brighter than ever. The journey toward electrification is well underway, and 2025 promises to be another milestone year for the industry.
