EV Market

India’s EV Market Surge In FY2024, But Challenges Remain

India’s electric vehicle (EV) market is in overdrive! FY2024 saw a massive 40% year-over-year (YoY) surge in sales, reaching a record 1.75 million units. This growth story is driven by two-wheeled electric vehicles – E2Ws and E3Ws – which together gobbled up a whopping 94% of the total EV market share.

E2Ws, the clear frontrunners, saw sales climb 29% YoY to over 1 million units. This segment now holds a dominant 57.6% share of the entire EV market. Increased consumer awareness and the launch of improved models that compete head-on with traditional gasoline vehicles are key factors behind this surge.

Not to be outdone, E3Ws (both passenger and cargo) witnessed a phenomenal 56% YoY growth, clocking sales of over 634,000 units. This segment boasts the highest EV penetration rate – over 52% – within the entire three-wheeler category. Favorable economics, rising demand in the logistics sector, and the need for efficient last-mile mobility solutions are fueling this growth.

The Electric Car (E-Car) segment, though showing promise, presents a different picture. Sales reached nearly 100,000 units in FY2024, reflecting a remarkable 82% YoY jump. However, overall adoption remains sluggish. Limited model variety and a lack of robust policy support are major roadblocks.

Electric Buses (E-Buses) stole the show for growth – a staggering 85% YoY increase, with sales exceeding 3,700 units. But here’s the catch: despite consistent growth since FY2021, the overall electrification rate in this segment remains stagnant. This is because the number of traditional diesel buses has also grown proportionally.

Geographically, the top five states – Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, and Rajasthan – collectively hold over half the EV market share. Uttar Pradesh leads the pack with a 17.42% share, followed by Maharashtra at 12.11%.

While India’s EV market is booming, challenges remain. E-Cars need stronger policy support and a wider range of models to truly compete. E-Buses require a strategic shift to prioritize electrification over simply adding more traditional buses. Overall, India’s EV journey is promising, but continued focus on infrastructure, policy, and consumer awareness is crucial to ensure sustainable growth.

The above article is based on JMK Research & Analytics “Whitepaper: Top 5 states EV adoption Trends in India”