Although the sales graph has increased, on a monthly basis, the escalation is just 1.22 per cent.
Amid numerous strategies, coupled with investments and subsidies unleashed by the government of India, electric vehicle sales in the country augmented to 24.65 percent in September, mounting to 148,539 units compared to 119,163 units in the same month a year back. In the first half of 2024-25, sales have grown to 19 percent overall, increasing to 836,621 units from 702,013 units in H1 of 2023-24.
Although the sales graph has increased every month, the escalation is just 1.22 per cent. The Vahan data from the Ministry of Road Transport and Highways revealed that the sales ratio in September stood highest this year until now, following March’s 203,506 sold units and 169,746 units in July. Experts think the sharp increase in sales in September has proved to be highly optimistic for the industry as consumers refrain from purchasing costly items during shradh/Pitru Paksha month.
The high sales growth is spearheaded by heavy discounts and offers by electric vehicle manufacturers. Preetesh Singh, a specialist in CASE and alternative powertrains at NRI Consulting & Solutions, said that the rise is not at par with expectations, and the base was also low. But as the festive season commences this month, EV makers anticipate a massive growth in sales volume, with 10-15 percent growth. The wide range of new model launches by OEMs will also contribute to growth in the coming months.
According to Vahan data, the top five players collectively sold 83,076 vehicles in August: Ola Electric led with 23,965, followed by Bajaj Auto with 23,529, TVS Motor Company with 17,923, Ather Energy with 12,579, and Mahindra Last Mile Mobility (formerly known as Mahindra Electric Mobility) with 5,080 vehicles. Vehicle sales surpassed the 1.23 million mark in the first eight months of 2024.
The steepest sales decline this year is due to the termination of the FAME 11 subsidy scheme on March 31, 2024, and the unleashing of the Electric Mobility Promotion Scheme 2024, which reduced the subsidy amount.
