India’s Electric Vehicle Market Zooms Ahead In FY-2024

India’s electric vehicle (EV) market witnessed a significant surge in FY2024, registering a whopping 42% year-on-year (YoY) growth. This translates to a total of 1.67 million units sold. Notably, the e-car segment emerged as the frontrunner, recording an impressive 90% YoY increase.

E-Cars Poised for Takeoff

Despite limited model availability, the e-car segment’s robust growth of 90% signifies its immense potential. This segment is expected to witness a further surge if incentivized similarly to the two-wheeler and three-wheeler segments under the FAME scheme.

Two-Wheelers (E2W) Gain Traction

The E2W segment, though experiencing a slower growth of 29% YoY compared to its stellar 188% growth last year, still holds promise. Electric vehicle penetration in this segment increased to 5.39% in FY2024 from 4.54% the previous year. Consolidation is underway, with the top three players capturing a dominant 65.49% market share, up from 42.82% in FY2023. TVS and Ola Electric led the charge with a remarkable YoY growth of 122% and 114%, respectively.

Three-Wheelers (E3W) Thrive

The E3W passenger segment displayed strong growth of 53% YoY. Here, electric vehicle penetration reached a significant high of nearly 56% in FY2024, likely driven by favorable cost economics. Mahindra, YC, and Saera emerged as the top players, collectively holding a market share of approximately 21%. Mahindra led the segment with a staggering YoY growth of 69%.

The E3W cargo segment mirrored this success, witnessing a substantial rise of 83% YoY. EV penetration jumped by nearly 10 percentage points compared to the previous year. The top three players in this space – Mahindra, OSM, and Piaggio – held a combined market share of around 27%, with Mahindra again demonstrating exceptional growth of 67% YoY.

electric vehicle

E-Buses See Green Light

E-bus sales experienced a significant boost of 79% YoY, reaching 3607 units. This growth is primarily fueled by public sector entities like State Transport Undertakings (STUs). With multiple tenders awarded, this segment is poised for explosive growth in the coming years. Notably, Tata Motors captured a significant share (around 50%) of the e-bus market in FY2024, driven by successful tender wins and agreements with STUs.

Momentum Set to Continue

The Indian electric vehicle sector witnessed a remarkable surge in the final months of FY2024. This momentum is expected to carry forward, bolstered by the government’s initiatives. The recently launched Electric Mobility Promotion Scheme (EMPS), along with the upcoming FAME-III scheme, promise to further accelerate electric vehicle adoption by offering attractive incentives across various vehicle categories.

Reference- JMK Research Newsletter, Economic Times, HT Auto, Autocar India, Ministry Of Heavy Transport