Electric Vehicle Sales Surge by 55.2% to 1.79 Lakh Units in July 2024 - India

The Indian electric vehicle (EV) market experienced remarkable growth in July 2024, with sales rising by 55.2% year-on-year (YoY) to reach 1,79,038 units. This surge in sales was primarily driven by the impressive performance of electric two-wheelers, which nearly doubled their sales compared to the same period last year. The Federation of Automobile Dealers' Association (FADA) released these figures, reflecting the growing acceptance and demand for electric vehicles in India.

Electric Two-Wheelers: Leading the Charge

Electric two-wheelers played a pivotal role in the overall growth of the EV market in July 2024. Sales in this segment soared by 95.94%, reaching 1,07,016 units, compared to 54,616 units in July 2023. This significant increase highlights the rising popularity of electric two-wheelers among Indian consumers, who are increasingly opting for eco-friendly and cost-effective transportation options. The surge in electric two-wheeler sales was the primary driver behind the overall growth in the EV market.

Electric Three-Wheelers: Steady Growth

Electric three-wheeler sales also contributed to the positive momentum in the EV market, registering an 18.18% increase in July 2024. A total of 63,667 units were sold, up from 58,873 units in the same month last year. This growth reflects the continued adoption of electric three-wheelers, particularly in urban areas where they are widely used for commercial purposes and public transportation.

Commercial Vehicles: A Remarkable Upsurge

The commercial vehicle segment witnessed an impressive two-fold increase in sales, with 816 units sold in July 2024, compared to 364 units in July 2023. This 124.2% YoY growth underscores the expanding role of electric commercial vehicles in India's logistics and transportation sectors. The increase in sales can be attributed to growing awareness of the environmental benefits of electric vehicles and the push for sustainable business practices.

Passenger Vehicles: A Slight Decline

While the overall EV market saw significant growth, the passenger vehicle (PV) segment experienced a slight decline in July 2024. Sales in this segment dropped by 2.92%, with 7,541 units sold compared to 7,768 units in July 2023. Despite this decline, the PV segment continues to hold a market share of 2.4%, indicating steady demand for electric passenger vehicles, even as other segments see more rapid growth.

Market Dynamics and Future Outlook

FADA President Manish Raj Singhania highlighted the growing market share of electric two-wheelers and three-wheelers, which stood at 7.4% and 57.6% respectively for July 2024. These figures demonstrate the increasing acceptance of electric vehicles in India, particularly in segments where affordability and efficiency are key considerations.

The marginal decline in the PV segment suggests that while there is interest in electric passenger vehicles, factors such as pricing, range anxiety, and charging infrastructure may still be influencing consumer decisions. However, the overall positive trend in the EV market is likely to continue, driven by attractive discounts, the anticipated discontinuation of the Electric Mobility Promotion Scheme (EMPS), and government initiatives to promote EV adoption.

Government Support and Industry Response

The Electric Mobility Promotion Scheme (EMPS), announced by the Ministry of Heavy Industries in March 2024, played a crucial role in boosting EV sales. Originally planned to run from April 1, 2024, to July 31, 2024, with an outlay of Rs 500 crore, the scheme has been extended until September 30, 2024, with the budget increased to Rs 778 crore. The anticipation of the scheme's discontinuation, along with the discounts offered during this period, significantly contributed to the surge in sales.

Conclusion:

July 2024 marked a significant milestone for the Indian EV market, with a 55.2% YoY increase in sales, driven primarily by the impressive performance of electric two-wheelers. As the industry continues to evolve, supported by government initiatives and increasing consumer awareness, the future of electric vehicles in India looks promising. The continued growth in the EV market indicates a shift towards sustainable mobility solutions, with electric two-wheelers and commercial vehicles leading the way.