India’s electric vehicle (EV) industry experienced significant growth in 2024, with a 26.5% increase in sales, reaching 1.94 million units by December 29, as per the Ministry of Road Transport and Highways (MoRTH) Vahan data. This marks a notable rise from 1.5 million units sold in 2023, bringing the total EV penetration in Bharat to 7.46%, up in comparison to the last year’s 6.39%.
Steady Growth in EV Sales
The rise in EV sales demonstrates a growing shift toward electric mobility, closing the gap with traditional petrol and diesel vehicles. However, petrol vehicles remain big players in the national market. Of the 26.04 million vehicles sold in 2024, 73.69% (19.18 million units) were petrol-powered, while diesel vehicles accounted for 10.05% (2.62 million units). The remaining 9.87% includes vehicles powered by other fuels such as petrol-CNG, hybrid, and compressed natural gas (CNG).
The ratio of traditional vehicles to EVs has steadily improved over the past few years. In 2024, an average of 12.43 petrol, diesel, CNG, or hybrid vehicles were sold for every EV, showing progress from 15.67 in 2023 and 21.05 in 2022.
A Look at Monthly Sales Trends
EV sales were strong from the start of the year. January and February saw 1,45,064 and 1,41,740 units sold, respectively. March marked a significant spike with 2,13,068 units, the first major jump of the year. Sales tapered off in April and May, with 1,15,898 and 1,40,659 units, respectively, before stabilizing in June at 1,40,137 units.
The second half of 2024 experienced a surge in sales, peaking in October with 2,19,482 units, the highest monthly figure of the year. November and December saw a slight decline in sales, with 1,92,575 and 1,32,302 units (as of December 29), but the monthly figures remained consistently above 1,00,000 units throughout the year.
Factors Influencing Sales
Several factors influenced the ups and downs in monthly sales. For instance, the lowest sales in April were due to the end of the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme, which led to a price hike after March 31, 2024. On the other hand, October’s sales spike was fueled by the festive season and the launch of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.
Additionally, the Ministry of Heavy Industries (MHI) gave a boost to the industry by reinstating subsidies for cargo electric three-wheelers (e3Ws) under the PM E-DRIVE scheme for the remainder of FY25. The scheme, which had earlier been halted after achieving annual targets, now offers a revised subsidy of Rs 25,000 per vehicle, down from the previous Rs 50,000. Despite this revision, the scheme helped sell 80,546 units shortly after its launch.
Looking Ahead
As EV adoption continues to rise, India’s electric vehicle (EV) market is showing signs of steady growth. Although it fell short of the 2 million mark in 2024, the industry’s progress indicates a promising future, supported by government initiatives and increasing consumer interest in eco-friendly alternatives.
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An EV enthusiast with over 2 years of experience in the EV industry and 4 years of expertise in sustainable living, dedicated to writing insightful content about electric vehicles at evkiduniya.com
