India’s EV Sales Cross 2 Million in 2024

Sandeep S Rathod

11 months ago

India’s EV Market Surges Past 2 Million Sales in 2024

India’s electric vehicle (EV) sales grew by 27% in 2024, crossing 2 million units. Favorable operating costs and new federal policies are expected to sustain this momentum. The government remains focused on electrifying municipal buses and expanding fast-charging infrastructure. Meanwhile, rising demand and increasing competition are driving automakers to seek public market funding for expansion.

Key Trends in India’s EV Market

Legacy Two-Wheeler Makers Gain Ground
EVs now make up 2.6% of all passenger vehicle sales. Tata Motors continues to lead, but MG Motor saw the biggest market share gain, rising to 25% in 2024 from 13% in 2023. Established two-wheeler brands are overtaking startups, with TVS Motor, Bajaj Auto, and Hero MotoCorp increasing their combined market share to 40%, up from 29% in 2023. Bajaj’s EV sales surged 2.7 times, making it the third-largest EV seller, surpassing Ather Energy.
Commercial EVs See Strong Growth
Sales of electric commercial vehicles, including vans and trucks, grew 2.5 times to over 6,220 units in 2024. The expiration of federal subsidies in April 2024 led to a rush in early-year purchases. Light commercial EVs, driven by logistics and delivery services, continue to dominate, while heavy-duty electric trucks remain limited to niche applications like port and mining operations.
Investment Boom in EV Sector
Indian EV companies secured $1 billion in funding from venture capital, private equity, and commercial banks. EV manufacturers received the majority, securing $671 million. Ola Electric became the first pure-play EV company to go public, while Hyundai India’s IPO set a record as the country’s largest.
State-Wise EV Adoption
Maharashtra and Karnataka led passenger EV and two-wheeler sales in 2024. Delhi now has the largest fleet of electric buses, surpassing Maharashtra, with Delhi and Maharashtra together accounting for 49% of India’s total e-bus fleet of 10,730 vehicles. Rising air pollution and policy incentives are driving regional governments to expand e-bus adoption.
Major Policy Announcements
The federal government introduced the PM E-Drive Scheme in September 2024, offering the first-ever upfront subsidies for electric trucks. E-bus subsidies will continue but will be restricted to state transport utilities in nine cities, prioritizing those scrapping older vehicles. A payment security mechanism will be introduced to ease the procurement and operation of municipal e-buses. Additionally, six states launched new policies in 2024 to boost EV demand and supply.