India’s EV market has been on the point of deflation. This 27% increase in sales was enough to bring the industry 1.94 million sold by December 29, almost hitting the target of 2 million units. The achievement speaks to the country’s increasing demand for greener, cleaner transport.
Government Tricks Fuel EV Boom?
A critical part of this boom has strong state support. Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme remained key, as did the new PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. PM E-DRIVE was launched in mid-2024, which gave large monetary incentives to consumers and automakers, rendering EVs more appealing.
“State policies are making EV adoption easier, the EV market just has to catch up,” an analyst said. These policies, coupled with subsidies and tax credits, have substantially lower the entry barrier for EV consumers.
Technology Meets Convenience
With battery technology improving and fast-charging stations popping up everywhere, EV ownership is no longer a dream—it’s a reality.
Advances in battery technologies and development of fast-charging infrastructure have taken care of some of the most common issues of Indian customers. Electric cars are far more range-extending and quick-charging, making them much more usable.
Even the public perception of the green and money-saving benefits of EVs has accelerated. Now consumers are more aware of their carbon footprint and the long-term economic benefits of electric.
A Market Still in Transition
EV sales have continued to increase steadily but petrol vehicles remain the kings with 73.69% of the 26.04 million vehicles sold in 2024. However, the gap is narrowing. The petrol, diesel and hybrid vehicle share of EVs rose to 12.43 non-EV vehicles per EV, compared to 15.67 in 2023.
This change is a step, albeit gradual, toward green mobility. This is expected to grow rapidly, according to analysts, as charging infrastructure spreads and EVs drop in cost.
Festive Season Boosts Momentum
January and February was strong for the year, followed by Christmas and New Year sales in October. Automobile companies seized on the boom in demand with brand-new models and special offers, alongside the introduction of the PM E-DRIVE scheme. But a small dip in November and December brought out the fragility of the EV market with regard to economic growth.
The Road Ahead
The 2-million milestone may have been missed in 2024, but India’s EV journey is far from over. Next year might just break all records.
As PM E-DRIVE has revived the subsidies on cargo electric three-wheelers (e3Ws) it has led to exponential expansion in the commercial sector with 80,546 sold in the first month of the scheme. While small and mid-size electric cars are still consumer favourites, and drive sales in the passenger segment.
The future is bright with EVs expected to break 2 million in 2025. State subsidies, technological developments and partnerships will be the major drivers of this expansion.
