India’s Electric Vehicle Landscape in 2024

 

India’s electric vehicle (EV) market has been witnessing significant growth, driven by supportive government policies, increasing environmental awareness, and advancements in EV technology. Here’s a comprehensive report on the state of India’s EV market in 2024.

Market Overview

The Indian EV market size is estimated at USD 34.80 billion in 20241. It is expected to reach USD 110.74 billion by 2029, growing at a CAGR of 26.05% during the forecast period (2024-2029). The market is projected to grow from USD 23.38 billion in 2024 to USD 117.78 billion by 2032, exhibiting a CAGR of 22.4%.


Sales Trends

In March 2024, EV sales in India saw significant growth across various categories compared to February 2024. Electric two-wheelers (E2W) experienced a notable surge from 82,508 units to 139,288 units. E-rickshaw sales also slightly increased from 36,566 to 37,352 units. The category of E3W L5 Passenger vehicles saw a substantial rise from 6,952 to 11,777 units. Similarly, E-cart sales increased from 4,438 to 5,090 units, while E3W L5 Cargo vehicles surged from 2,642 to 6,554 units. Electric four-wheelers (E4W) saw growth from 7,434 to 9,383 units. Sales of electric buses (E Bus) also experienced a slight increase from 322 to 414 units. Additionally, other EV categories collectively saw a rise from 541 to 1,757 units.

During the twelve-month period from April 2023 to March 2024, a total of 1,678,905 electric vehicles (EVs) were sold in India3. The sales figure for March 2023 started at 140,919 units and consistently rose month by month, peaking at 158,458 units in May 2023. Although there was a slight dip in June 2023, attributed to a decrease in subsidies resulting in 102,638 units sold, sales rebounded from July 2023 onwards. Notably, in March 2024, EV sales reached an all-time high of 211,615 units.


Government Policies

The Indian government has introduced the Electric Mobility Promotion Scheme 2024 (EMPS) to promote the purchase of electric two-wheelers (e2W) and three-wheelers (e3W). With a budget of Rs 5 billion, it will replace the FAME-2 scheme and will be effective from April to July 2024, with the possibility of being replaced or extended thereafter.

Under the new EV policy, announced in March 2024, beneficiaries need to invest $ 500 million for setting up electric car manufacturing facilities. They also need to comply with up to 50% minimum domestic value addition commitment.

 

Infrastructure Development

The finance minister’s assurance to revamp the EV charging infrastructure heralds a promising future for electric vehicle adoption in India. This initiative is expected to tackle the pressing issues of high costs, inadequate charging facilities, and range anxiety, thereby accelerating the growth of the electric vehicle market.


Key Manufacturers

Top players in the EV market include OLA Electric, TVS Motors, and Bajaj Auto. The top 3 brands for March 2024 regarding the number of electric passenger 3Ws registered are Mahindra Last Mile Mobility Ltd, Bajaj Auto, and Piaggio Vehicles.


Conclusion

India’s EV market is poised for significant growth, driven by supportive government policies, increasing environmental awareness, and advancements in EV technology. The country is making strides towards becoming a global leader in the EV sector, with a focus on promoting local manufacturing and reducing reliance on fossil fuels. As the market continues to evolve, it will be interesting to see how these trends shape the future of mobility in India.


Sources: online research report and article

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