The EV market in India saw incredible growth in 2024 with sales gaining 27% over the previous year. But in spite of this stellar performance, the industry missed out on the 2-million mark by only 50,886 units.
A Year of Record-Breaking Numbers
In total, EV sales in CY2024 increased to 1,94,91,114 units (up from 15,32,386 units in CY2023). This expansion was driven by strong double-digit growth in nearly all segments with electric two-wheelers (E2Ws) and three-wheelers (E3Ws) driving the market. The only exception was the heavy goods vehicle segment which had relatively steady growth.
Electric Two-Wheelers Shine Bright
Electric two-wheelers held the top spot in terms of EV sales share, garnering 59% of the total market. The category sold 11,48,575 units in 2024 — an increase of 33% over the 8,60,418 units sold in 2023. One such milestone came on November 12, 2024, when for the first time in a calendar year, E2W sales hit 1-million.
Festive Boom for Electric Three-Wheelers
Even electric three-wheelers played a major role, accounting for 35% of all EV sales. October 2024 was an exceptional month with 219,548 units sold, a 56% year-over-year increase. Festivals and promotions were the main contributors to this surge and it was a historic month for the industry.
December Dip – An Undertaken Success?
Though overall the year was good, flat sales in December 2024 cut short any prospects of crossing the 2-million barrier. Most consumers waited for the new year releases or sales to arrive before buying. This delaying left 50,886 units short — a number we’ve come to hold on to for the future.
Market Leaders and Rising Stars
Tata Motors maintained the market share of 62% and sold 61,435 units. But its market share fell a bit, down from 73% in CY2023. The large product portfolio, which also includes the Nexon EV and Tiago EV, keeps the brand in the buyer’s crosshairs.
MG Motor India, on the other hand, was a fierce competitor, increasing its market share to 21%. Sales reached 21,464 thanks to the successful introduction of the MG Windsor EV in September 2024.
Mahindra too impressed with its XUV400 EV, registering 66% growth in sales and 7% share of the market. The introduction of two “Born Electric” SUVs, the BE 6e and XEV 9e, will further solidify its position in 2025.
Challenges in the EV Landscape
Even though 2024 was a record year for EV sales, the sector experienced challenges. The end of the FAME II subsidy in the final quarter affected fleets and Tata Motors saw sales plummeting from April to September.
Forward Perspectives – A Great Prospect.
Despite these barriers, the EV market in India is still healthy. Future launches, including the Tata Harrier EV and new launches by MG and Mahindra, are expected to drive growth. The increasing awareness among consumers and government support for sustainable mobility is expected to fuel further growth.
The Road Ahead
Although the EV industry missed the 2-million mark by a minuscule margin, its 27% increase in 2024 highlights the growth of electric mobility in India. This year has prepared us for a more vibrant 2025 as innovation and growth bring the road towards a more sustainable future.
In the global race towards sustainable mobility, the missed milestone can act as a reminder both of the obstacles and of the promise of India’s EV market. The road ahead promises to be thrilling.
