Understanding the EV Market in India
Fifteen years ago, electric vehicles (EVs) were a rare sight in India, with Mahindra’s Reva attempting to spark an EV revolution. Although it didn’t achieve significant sales, it hinted at the potential for EVs to become mainstream someday.
Fast forward to 2024, and India has over 50 lakh registered EVs, with the market experiencing record growth, around 20 lakh units sold in that year alone. What was once an uncommon sight has now become a part of everyday life, with EVs seen everywhere, from scooters and bikes to autorickshaws, cars, and even buses.
EVs accounted for around 4% of overall automobile sales, as per the Ministry of Road Transport and Highways through its Vahan Dashboard. According to the Dashboard, Uttar Pradesh, Maharashtra and Karnataka are leading in terms of EV sales.
The sale was around 30% growth compared to around 16 lakh units sold in 2023.
Now, this sort of growth is ushering in a new age of EV’s in the Indian market. Most sceptics once noted that EV’s would be a tough sell in the Indian market due to the markets cost sensitive nature and the comparatively higher cost of EV’s.
As we saw mentioned in EV vs ICE costs article, the price difference in some segments is not as big anymore.
Now, let’s look into the segments that are driving the EV revolution, to better understand from where this demand is coming from.
Source: Parivahan
EV Sales by Segment
Electric two-wheelers
This Segment has seen the most sales, accounting to nearly 59% of the total EV market in 2024 with around 11 lakh units sold. Ola Electric has led the segment with over 4 lakh EVs sold, followed by TVS with over 2 lakhs sold, Bajaj has sold nearly 2 lakh units, Ather is in fourth spot with 1.2 lakh vehicles sold and holding fifth place is Hero with around 43,000 vehicles sold.
Electric three-wheelers
At Second spot are electric three wheelers, this category accounts for around 35% of all EVs sold in 2024 with around 7 lakh units. Mahindra Last Mile Mobility sold the most in this category, followed by YC Electric Vehicle, Bajaj Auto, Saera Electric Auto, and Dilli Electric Auto.
Electric four-wheelers
The four-wheeler market represents 5% of the total sales with over 90,000 units sold in 2024. Tata Motors is leading the segment with over 50,000 units sold, more than twice that of MG Motors, which finish second place with over 20,000 units sold. Mahindra, BYD and BMW finish 3rd 4th and 5th place with a combined sales of over 10,000 units.
The Shift
The rise in petrol prices, coupled with the global decline in battery costs, has accelerated the transition to EVs. Batteries, which are the most expensive component of an EV, have become easier and more affordable to manufacture with advancements in technology. This has resulted in EVs being priced more competitively with their petrol-powered counterparts. Additionally, lower maintenance costs and the reduced cost of electricity compared to fuel have further contributed to the growing popularity of EVs.
Another key factor driving EV adoption is government support through subsidies and initiatives like the FAME policy. Notably, in September 2024, the Union Cabinet approved the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Program. With a total budget of ₹10,900 crore, the program aims to boost EV adoption through demand incentives, vehicle deployment, and the development of charging infrastructure.
The PM E-DRIVE Program includes ₹8,000 crores in subsidies to promote electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), e-ambulances, e-trucks, and e-buses. It specifically targets the deployment of 2.4 million e-2Ws, 316,000 e-3Ws, and 14,028 e-buses.
Frequently Asked Questions:
1. How popular are electric vehicles (EVs) in India now?
EVs have become much more common in India. In 2024 alone, around 20 lakh EVs were sold, and there are now over 50 lakh registered EVs across the country.
2. Which Indian states have the most EV sales?
According to the government’s Vahan Dashboard, Uttar Pradesh, Maharashtra, and Karnataka are the top three states for EV sales.
3. Which EV segment is the most popular?
Electric two-wheelers are the most popular, making up about 59% of EV sales in 2024. Around 11 lakh two-wheelers were sold, with Ola Electric leading the market.
4. Why are more people buying EVs now?
EVs are getting cheaper because battery costs are falling. Also, petrol prices are rising, and EVs cost less to maintain and run on cheaper electricity instead of fuel.