Report Suggests India’s EV Sales Will Surge, Rising 66% In 2024

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In 2023, sales of electric vehicles (EVs) in India almost doubled due to increased consumer interest, government actions, better infrastructure, and climate change worries. Predictions for 2024 suggest a 66% increase in EV sales, reaching 4% of all passenger vehicle sales, spurred by new market players and government subsidies. By 2030, EVs are projected to make up nearly one-third of India’s passenger vehicle market, indicating strong long-term growth in the automotive sector.

A recent study from Counterpoint indicates that in 2023, while passenger vehicle sales in India increased by 10% year-over-year, electric vehicle sales surged, nearly doubling and representing 2% of total passenger vehicle sales. This increase in electric vehicles can be linked to various factors, such as rising interest among urban consumers, government actions, infrastructure development, and climate change concerns.

Tata Motors led the electric vehicle market in India, holding more than two-thirds of the market share in 2023, although it faced competition from Mahindra & Mahindra and BYD. Mahindra & Mahindra experienced the most rapid growth, with a 2476% increase attributed to one model alone. It was closely followed by BYD and MG Motor.

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Mahindra’s significant growth was driven by its focused marketing of the all-electric SUV XUV400 introduced in 2023. BYD, with only two models in its Indian lineup—the e6 MPV and Atto 3 SUV—saw growth exceeding 1500%. Despite being in the premium segment, BYD managed to secure a spot among the top five EV brands in India, demonstrating considerable success.

BYD’s recent introduction of the Seal model is anticipated to boost the brand’s market presence and competitiveness further, contributing to ongoing changes in India’s EV market. According to Counterpoint Research’s India Passenger Vehicle Model Sales Tracker, EV sales are projected to grow by 66% in 2024, making up 4% of total passenger vehicle sales. By 2030, electric vehicles are expected to account for nearly a third of India’s passenger vehicle sales.

Maruti Suzuki is expected to enter the EV market and challenge Tata’s dominance. Additionally, VinFast’s decision to establish a factory in Tamil Nadu, India, underscores the increasing focus and investment in electric vehicle production in the country, suggesting a shift towards more competitive and sustainable automotive technologies.

Source: Counterpoint Research’s India Passenger Vehicle Model Sales Tracker

 

Associate Director Liz Lee commented on the supply chain developments, stating that India’s electric vehicle landscape is poised for substantial growth. Increased electric vehicle battery production by major companies like Ola, Reliance New Energy, and ACC Energy Storage, supported by the Make in India initiative, will help reduce manufacturing costs and elevate electric vehicle sales. Government measures such as the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cells and reduced import duties on electric vehicles above $35,000 to 15% are crucial developments. These changes not only pave the way for Tesla but also demonstrate India’s readiness to attract significant investments and develop a new ecosystem for electric vehicles and their suppliers, signalling that India is accelerating its role as a significant player in the global electric vehicle market.

Source: Counterpoint Research’s India Passenger Vehicle Model Sales Tracker

Research Vice President Neil Shah mentioned that the electric vehicle ecosystem is still in its early stages. As infrastructure improves and consumer interest grows, new players like Tesla and emerging Chinese brands such as Xiaomi are expected to drive innovation and competition in the world’s fourth-largest passenger vehicle market. Moreover, while the traditional automobile manufacturing ecosystem is well-established, there is considerable potential for a robust smart car manufacturing ecosystem, from battery production to infotainment and sensors to full Advanced Driver-Assistance Systems (ADAS). Key industry players are likely to focus on India for technology research and development as well as export opportunities, with companies like Qualcomm and MediaTek contributing advanced auto components and Foxconn facilitating entry for new market entrants with its MIH consortium-based localized design and manufacturing model.

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Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

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