India’s automobile industry had a modest year in 2024, with overall vehicle sales growing just 0.5% during the April-September quarter. However, the electric vehicle (EV) segment has been a remarkable outlier, registering over 18 lakh units sold between January and November 2024. This marks a 25% year-on-year increase, showcasing India’s accelerating transition to cleaner mobility.
Record EV Sales in 2024
According to government data, EVs accounted for 7.4% of total vehicle sales (2.43 million units) this year. Leading this growth was the electric two-wheeler segment, which made up 60% of all EV volumes. Over 10.74 lakh electric scooters, motorcycles, and mopeds found buyers in the first 11 months, signaling a major shift in consumer preference for affordable, eco-friendly transport.
Electric three-wheelers, including e-rickshaws, also played a significant role, contributing 35% of total EV sales with 6.31 lakh units sold. Meanwhile, electric passenger vehicles like cars and SUVs, while still growing, captured a modest 5% market share with 89,877 units sold.
The Role of the PM E-Drive Scheme
The government’s PM E-Drive scheme, launched in October 2024 with a budget of ₹10,900 crore, has been pivotal in driving EV adoption.
Designed to boost demand, develop charging infrastructure, and enhance manufacturing capabilities, the scheme offers targeted subsidies for various EV segments.
- Two-wheelers: Incentives up to ₹5,000/kWh in the first year, capped at ₹10,000.
- Three-wheelers: ₹25,000 in the first year, halved to ₹12,500 in the second year.
- Other allocations: ₹780 crore for testing facilities and technology upgrades.
Additionally, the earlier EMPS-2024 scheme supported 3.72 lakh EVs with subsidies worth ₹493.55 crore. Together, these initiatives have significantly lowered the upfront cost of EVs, making them more accessible to consumers.
Shifting Dynamics in the Electric Four-Wheeler Segment
The electric passenger vehicle (ePV) segment witnessed intense competition this year. Tata Motors, while still the leader, saw its market share decline from 70% to 64%. MG Motor India emerged as a strong contender, thanks to the launch of the Windsor EV and its innovative Battery-as-a-Service model, boosting its market share from 13% to 36%.
Luxury EVs also gained traction, capturing 3% of the ePV market. New launches from Mahindra (XEV 9e, BE 6e), and BYD (Seal) added diversity and competitive pricing to the market, further attracting buyers.
Major EV Launches in 2024
The year saw an influx of new EV models across segments, making the market more vibrant than ever. Key launches included:
- Tata Punch EV and Curvv EV
- Mahindra XEV 9e and BE 6
- MG Windsor EV
- BYD Seal
- Honda Activa Electric
- Brisk Origin Electric Scooter
- Revolt RV1 Electric Bike
These launches not only widened the choices for buyers but also brought EVs closer to mainstream affordability.
A Promising Future for Electric Mobility
India’s EV journey is just beginning, and the trends from 2024 indicate a bright future. With government support, increasing consumer awareness, and more affordable options, EVs are rapidly becoming a preferred choice for mobility. As we move toward 2025, the momentum in electric mobility is expected to continue, reshaping the automotive landscape in India.
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