India leads electric three-wheeler market with 20% rise in sales: International Energy Agency (IEA)

India retained its position as the world’s largest market for electric three-wheelers (3Ws) for the second consecutive year in 2024, with sales rising nearly 20% to approximately seven lakh vehicles, according to the International Energy Agency’s (IEA) Global EV Outlook 2025. While the global 3W market shrank 5%, electric 3W sales grew over 10% to surpass one million units. India and China accounted for over 90% of global 3W sales. However, India led with a record 57% electric share in 2024, up 3% from the previous year. The growth is supported by policy incentives such as the PM E-DRIVE scheme, which aims to roll out over three lakh electric 3Ws for commercial use. India’s 3W fleet exceeded 10 million vehicles in 2023.

India remains a key market for electric two-wheelers (2Ws), accounting for about 1.3 million units sold in 2024, or 6% of the total 2W market. Domestic original equipment manufacturers (OEMs) grew to 220, with four leading firms controlling 80% of sales. Ola’s entry-level S1X model was priced at Rs. 70,000 (US$ 818.08), undercutting top internal combustion engine (ICE) 2Ws. Under PM E-DRIVE, subsidies of up to Rs. 5,000 (US$ 58.43 )/ kilowatt-hour (kWh) are offered for 2Ws with lithium-ion batteries. With a Rs. 11,117 crore (US$ 1.3 billion) budget, the scheme aims to support the rollout of 2.5 million electric 2Ws by March 2026. Meanwhile, electric car sales approached one lakh in 2024, with 45% growth YoY and 35,000 units sold in Q1 FY25. Electric bus deployment has surged, with stock rising from under 3,000 in 2020 to over 11,500 by end-2024, underscoring India’s broad progress in electric mobility.

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