India’s EV sales surge by 27% in 2024, investment and policy support drive growth: Study, ET EnergyWorld

New Delhi: India’s electric vehicle (EV) sales grew by 27% in 2024, crossing 2 million units, supported by government incentives, infrastructure expansion, and increasing consumer demand, according to a BloombergNEF study. The push for municipal e-buses and the development of fast-charging stations remain key priorities, while growing competition has led automakers to seek public market funding for expansion.

According to industry data, EV adoption among passenger vehicles has reached 2.6%. Tata Motors maintained its market leadership, while MG Motor saw a significant increase in market share, rising to 25% in 2024 from 13% the previous year. In the two-wheeler segment, legacy manufacturers such as TVS Motor, Bajaj Auto, and Hero MotoCorp increased their combined market share from 29% in 2023 to 40% in 2024. Bajaj Auto’s EV sales grew 2.7 times, making it the third-largest EV seller, overtaking Ather Energy.

Sales of electric commercial vehicles, including vans and trucks, more than doubled, reaching over 6,220 units. The expiration of federal subsidies in April 2024 led to a surge in early-year purchases. The adoption of light commercial EVs is primarily driven by logistics and delivery services, while heavy-duty electric trucks are being deployed for specialized operations such as ports and mining.

Investment in the sector remained robust, with EV firms securing $1 billion in funding from venture capital, private equity, and commercial banks in 2024. Of this, EV manufacturers raised about $671 million. Ola Electric became India’s first pure-play EV company to be publicly listed, while Hyundai India’s initial public offering (IPO) was the country’s largest.

State-wise, Maharashtra and Karnataka led passenger EV and two-wheeler sales in 2024, while Delhi now has the highest number of electric buses, surpassing Maharashtra. Delhi and Maharashtra together account for 49% of India’s e-bus fleet, which stands at 10,730 vehicles. Government policies, rising pollution levels, and the lower operating costs of EVs continue to drive adoption at the regional level.

In policy developments, the central government announced the PM E-Drive Scheme in September 2024, marking the first time electric trucks will receive upfront subsidies. The subsidy for e-buses will now be restricted to state transport utilities in nine cities, with priority given to those scrapping older vehicles. A payment security mechanism will be introduced to facilitate municipal e-bus purchases and operations.

Six states introduced new policies in 2024 to promote both EV demand and domestic manufacturing. As competition in the sector intensifies, industry players are expected to focus on technological advancements, cost efficiency, and infrastructure expansion to maintain growth momentum.

• Published On Feb 21, 2025 at 08:20 AM IST

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