How did India’s EV adoption fair in 2024? Sales rose 26.5% to 1.94 million units, improving market share, though petrol vehicles remain dominant.
India’s electric vehicle (EV) sales surged by 26.5% in 2024, reaching 1.94 million units, according to data from the Ministry of Road Transport and Highways (MoRTH). Although the total fell short of the 2 million mark just at the edge, it marks a notable increase from 1.5 million units in 2023, raising EV market penetration to 7.46%, up from 6.39% the previous year.
The year saw varied sales patterns for EV sales, starting strong in January and February with over 140,000 units sold each month. March saw a peak of 213,000 units. October, bolstered by the festive season and government schemes, recorded the highest monthly sales at 219,000 units. Sales, however, dropped in the final months, with figures dipping to around 130,000 lakh units by December 29.
The EV market’s momentum was further supported by government subsidies, including the PM E-DRIVE scheme, which helped drive higher sales in the second half of 2024. Despite a subsidy reduction from Rs 50,000 to Rs 25,000 per vehicle, the policy remained vital for growth, with 80,546 units sold under the scheme.
According to a report by the Business Standard, despite the growth in EV sales, petrol-powered vehicles remain dominant in India’s automotive market. Of the 26.04 million vehicles sold in 2024, 73.69% were petrol vehicles (19.18 million units), while diesel vehicles accounted for 10.05% (2.62 million units). Other fuel types, including CNG and hybrids, made up 9.87% of total sales.
Nevertheless, there were some improvements. In terms of market share, for every EV sold in 2024, 12.43 traditional vehicles were purchased, reducing from 15.67 in 2023 and 21.05 in 2022.