EV sales in India up 27% in 2024, miss 2 million mark by a whisker

India’s electric vehicle (EV) industry achieved significant growth in 2024, with sales rising 26.5% year-on-year to 1.94 million units as of December 29, according to Vahan data from the Ministry of Road Transport and Highways (MoRTH). This increase in sales, up from 1.5 million units in 2023, has elevated the overall EV penetration in the country to 7.46%, compared to 6.39% the previous year. Although EVs are gaining traction, petrol vehicles still dominate the market, accounting for 73.69% of the 26.04 million vehicles sold in 2024. The trend indicates a gradual shift towards electric mobility, as the sales ratio of petrol, diesel, and hybrid vehicles to EVs improved significantly this year.

The second half of 2024 witnessed a surge in EV sales, peaking in October at 2,19,482 units, driven by festive demand and the launch of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. Although sales dipped in November and December, they consistently remained above 100,000 monthly units. Factors such as reinstating subsidies for cargo e3Ws under the PM E-DRIVE scheme have further stimulated growth. The industry quickly adapted, selling 80,546 units shortly after the scheme's launch, demonstrating the increasing acceptance and market potential for electric vehicles in India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.