EV Sales surge by 42% in FY2024 to clock 1.67 million units

EV sales in India increased 42% year on year (YoY) in FY2024, with 1.67 million units registered. The e-car segment registered maximum YoY growth of 90%. Riding on the booming logistics and e-commerce sector, as well as favourable cost economics, the E3W cargo segment saw an 82% rise in sales.

Further, even with the limited models in the e-cars segment in India, the sector was able to achieve 90% growth in FY2024. This clearly shows the future potential of the e-car segment. If fueled with incentives, as done for the E2W and E3W segments in the FAME scheme, the e-car segment is sure to see massive adoption.

Fig 1: EV sales trend in India

Source: JMK Research, Vahan Dashboard

Upon analyzing segment wise growth, following insights are derived:

E2W segment: As can be seen from the chart, the E2W segment grew by 29% on a YoY basis, while last year, it was 188%. EV penetration percentage was 5.39% in FY2024 compared to 4.54% in FY2023. The E2W market has started showing signs of consolidation with the top three players taking 65.49% share in FY2024, while in FY2023, the top three players had 42.82% market share. TVS and Ola Electric saw the maximum YoY growth of 122% and 114%, respectively.

E3W Passenger: In FY2024, E3W passenger segment grew by 53% on YoY basis. EV penetration percentage was highest in this segment i.e. 56% in FY2024 mainly because of favourable cost economics. The top three players (Mahindra, YC and Saera) accounted for 21% share. Mahindra has shown maximum YoY growth of ~69% in E3W passenger category in FY2024.

E3W Cargo: In FY2024, the E3W cargo segment grew by 83% on YoY basis. EV penetration increased by nearly 10% percentage points in this segment on a YoY basis. The top three players (Mahindra, OSM and Piaggio) accounted for 27% share. Mahindra has shown maximum YoY growth of ~67% in the E3W cargo category in FY2024.

E-Cars: The e-car segment registered highest YoY growth of about 90% among all categories in FY2024. Mahindra sales grew multi-fold from 485 units in FY2023 to 6058 units in FY2024. Owing to very limited models in the E-Car segment in India, the top 3 OEMs contributed to >90% of sales in FY2024.

E-bus: E-bus sales increased substantially by 79% in FY2024, reaching 3607 units. This segment is driven by public sector entities, including State Transport Undertakings (STU). Given multiple allocations under various tenders, volumes are likely to see exponential growth in the coming years. Tata Motors saw tremendous growth in FY2024, taking a 50% share of the e-bus market. The company won tenders floated by CESL and signed definitive agreements with STUs leading to a phenomenal growth during the year.

The EV sector has been growing tremendously in the last few months of FY2024. This momentum is expected to continue as the government has lined up EMPS (Electric Mobility Promotion Scheme) starting from April 1, 2024, along with FAME-III, which will soon be rolled out to accelerate EV adoption with suitable incentives across categories.