EV adoption accelerated sharply post-2022. Sales of EVs in India doubled more than in 2022 to 1.1 Mn from 300K in 2021. The next year, EV adoption again skyrocketed with nearly 50% year-over-year (YoY) growth in 2023 on the strength of subsidies for first adopters.
This is how annual EV registrations skyrocketed to 1.9 Mn in 2024 from 164K in 2019.
Two-wheelers led the charge early on among EVs, but electric vehicles are quickly closing the gap, with numerous new models on the verge of launching in 2025. But first, let’s see how each segment fared in 2024.
India’s Electric Car Rally Gets Going
Of the three segments, E4W or electric vehicles experienced the most growth in adoption in 2024. From 2018 to 2023, there were approximately 1.13 Lakh registered 4-wheeler EVs in the nation. Interestingly, India added 1.47 Lakh in this segment alone last year, surpassing the combined total of the previous six years.
On a YoY basis, the number of electric four-wheelers registered increased more than doubled from 73K in 2023.
Automotive giant Tata Motors led the charge for the Indian electric vehicle market. Data from Vahan indicated that nearly 55K units produced by Tata Motors were registered in 2024. Toyota followed in second position with nearly 48K units registered in the national vehicle database. China’s MG Motor came third with 21K units sold.
But 2024 was also the year of new launches, which is an indication of a general optimism in the automobile sector for electric cards. Tata conceived its launch of Punch EV and Curvv while Mahindra also launched three four wheelers EVs namely Mahindra XEV 9e, BE6e and the refreshed XUV 400.
MG Motors introduced its launch of EV9 and Chinese electric vehicle manufacturer BYD also entered the Indian market with its BYD Seal.
With these spate of new launches, Indian consumers have a wide range of choices and the market has also witnessed competitive pricing that has made EVs more affordable for individuals.
Next year is likely to become spicier for this industry as international EV behemoth Tesla is poised to enter the world’s third largest car market. To counter the local companies, it has decided to launch its customized model which would be priced at around INR 25 Lakh, directly challenging the current models available in the market.
Incidentally, Vietnamese EV manufacturer VinFast is also looking to introduce EVs in India and has already established a plant in Tamil Nadu with an investment of $500 M.
Two-Wheeler EVs Dominates The Market
Despite electric four-wheelers experiencing the largest growth in the registration numbers in the last year, the two-wheeler market remained top. A staggering 60% of the entire EVs registered in 2024 were two-wheelers, with 11.4 Lakh new units registering in the vehicle database in the year.
YoY, electric two-wheelers registered increased 33% from 8.6 Lakh in 2023.
In spite of umpteen complaints from customers and cost-cutting measures, Bhavish Aggarwal-led Ola Electric remained at the top of the charts with over 4 lakh units registered on Vahan. In hot pursuit of Ola was legacy auto brand TVS, placing second with over 2 Lakh units registered, followed by IPO-bound Ather Energy in the third position at 1.92 Lakh units.
With Ola launching its motorcycles this year, and incumbent players such as Honda launching in the E2W segment this year, the segment will become more competitive. Not to mention the increased registration of newer EV players like River, PureEV, Oben and others, which could rekindle the competitive fervour even in price segments.
Three-Wheeler Market Shows Growth Shoots
Considering the extensive tail of electric three-wheeler manufacturers in India, this segment is by far the most competitive of all three EV segments. Penetration in the three-wheeler segment — passenger and commercial rickshaws — rose marginally 12.8% on a YoY basis in 2024 with 6.59 Lakh units sold.
With legacy players dominating this segment, new-age startups such as Euler are way behind with only 3,523 sold in 2024. But it should be mentioned that since electric three-wheeler registrations are a commercial affair, many delivery companies have also hopped on to the bandwagon.
Looking Ahead At EV Adoption In India
Although EV sales decelerated in the year from the growth rate of 2023, it can be said that the EV market became mature in 2024, particularly when referring to the electric cars and four-wheeler segment.
Government subsidies and incentives were found to be the crucial elements in fuelling EV purchases in 2023, and cutting subsidies did have a direct cause of some deceleration last year. Nevertheless, more and more organizations are introducing enhanced products, contributing to the belief among consumers of EVs.
In October 2024, the government launched the PM E-DRIVE program with an overall outlay of INR 10,900 Cr, primarily aiming at the development of EV infrastructure and expanding the ecosystem to include more vehicles
