Despite challenges from heavy rains and high inventory costs, Indian electric vehicle market remains optimistic as sales reportedly rose 55.2% YoY to 179,038 units in July 2024.
Electric vehicle sales in India surged 55.2% year-on-year to 179,038 units this July, reported the Federation of Automobile Dealers’ Association (FADA) on Monday. This growth was largely driven by a 96% increase in e-two-wheeler sales. According to FADA’s monthly data, total electric vehicle sales for July 2023 reached 116,221 units.
Last month, electric two-wheeler sales surged 95.94% to 107,016 units, while electric three-wheeler sales rose 18.18% to 63,667 units. Commercial vehicle sales doubled to 816 units, but passenger vehicle (PV) sales fell 2.92% to 7,541 units, as per FADA’s data.
In July, the Indian EV market faced several challenges. The monsoon’s above-normal rainfall and uneven distribution caused varied impacts across different regions. Consumer sentiment was low in areas affected by heavy precipitation and economic uncertainties.
Additionally, dealers faced financial strain from high inventory costs and interest expenses, while increased competition and heavy discounting further pressured the market.
FADA President Manish Raj Singhania remarked that despite these challenges, the significant YoY growth rates of 95.94% for two-wheelers and 18.18% for three-wheelers in July 2024, along with their market shares of 7.4% and 57.6%, respectively, reflect the increasing acceptance and demand for electric vehicles in India.
Singhania stated that the PV segment experienced a slight year-on-year decline of 2.92% and held a market share of 2.4%. In contrast, the commercial vehicle segment has seen impressive growth, with a 124.2% year-on-year increase and a market share of 1.02% for July.
Furthermore, he noted that appealing discounts and the expected end of the Electric Mobility Promotion Scheme (EMPS) have significantly driven sales. Initially launched by the Ministry of Heavy Industries for April to July 2024 with a ₹5 billion budget, the scheme has been extended to September 30, and its budget increased to ₹77.8 billion.
FADA’s near-term outlook for the EV and overall automobile market is cautiously optimistic. The festive season and new product launches are expected to boost sales despite a brief monsoon break in August.
