A new report by Counterpoint Research indicates that India’s electric vehicle (EV) market is expected to substantial growth in 2024. Sales are expected to surge by 66% compared to 2023, with EVs potentially accounting for 4% of total passenger vehicle (PV) sales.
Looking ahead, the report suggests that by 2030, EVs could make up roughly one-third of India’s annual PV sales.
In 2023, Tata Motors emerged as the dominant player in the EV market, commanding two-thirds of the market share. However, the report suggests that Maruti Suzuki’s planned entry into the EV market in 2025 could hinder the EV dominance of Tata in the country.
Furthermore, Vietnam’s EV brand VinFast has also announced plans to establish a manufacturing plant in Tamil Nadu, indicating growing industry investment in India’s EV sector.
The trend underlines the shift toward sustainable and eco-friendly technologies in the automotive industry, as noted in the Counterpoint report.
Liz Lee, Associate Director at Counterpoint Research, also stressed the importance of ramping up EV battery manufacturing in India to boost sales.
Companies like Ola, Reliance New Energy, and ACC Energy Storage have made significant investments in this area. Combined with the Make in India initiative, this is expected to cut production costs and drive further EV sales.
The Indian government has also announced initiatives such as the PLI scheme for Advanced Chemistry Cells (ACC) and recent reductions in import duties for EVs priced under $35,000. These are viewed as vital steps in attracting investment in the EV sector in India.
The report also points out notable growth in EV sales in 2023, with EV sales nearly doubling while overall passenger vehicle sales increased by 10%, capturing 2% of the PV market.
The report highlights key factors driving this trend including growing urban consumer interest, government support, improving infrastructure, and increased awareness of climate change.
In 2023, Mahindra & Mahindra experienced a remarkable 2,476% increase in market share, largely fueled by the success of its all-electric SUV, the XUV400. Other brands like MG Motor and BYD also performed well, with BYD solidifying its position among India’s top five EV brands.
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