India’s Electric Vehicle Market Sees Major Growth In 2024

India’s electric vehicle (EV) sales surged by 27% in 2024, surpassing two million units, according to a recent BloombergNEF report. This growth highlights the increasing adoption of new-age vehicles and signals a promising future for the electric mobility sector in India.

The sector’s growing importance has also attracted significant investment, with venture capital, private equity, and commercial banks contributing $1 billion in funding. Notably, EV manufacturers secured $671 million in deals, further boosting the sector’s expansion.

Rising Demand Fuels Competition And Public Market Activity

As demand for EVs rises, competition in the market intensifies, prompting several automakers to explore public markets for financing. Hyundai India made headlines with its initial public offering (IPO), which became the largest in the country’s history. Additionally, Ola Electric became the first pure-play EV firm to list on public markets, marking a significant milestone for the industry.

Electric vehicles now account for 2.6% of all passenger cars sold in India, with fierce competition shaping the market landscape. Tata Motors continues to hold its top position, while MG Motor saw significant gains, increasing its market share to 25% in 2024, up from 13% the previous year.

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In the two-wheeler segment, legacy manufacturers have become a growing threat to startups. TVS Motor, Bajaj Auto, and Hero MotoCorp’s combined sales share in the electric two-wheeler market rose from 29% in 2023 to 40% in 2024. Bajaj, in particular, emerged as the third-largest EV seller, with its sales growing by 2.7 times in 2024, surpassing Ather Energy.

The commercial vehicle sector also experienced notable growth, with sales of electric trucks and vans increasing 2.5 times, reaching 6,220 units in 2024. Demand in the light commercial vehicle segment, driven by delivery and logistics providers, is primarily due to the lower operating costs and decarbonization goals.

State-wise Performance And Regional Trends

On a state-by-state basis, Karnataka and Maharashtra saw the highest sales of electric two-wheelers and passenger EVs. In a surprising shift, Delhi surpassed Maharashtra to become the state with the largest fleet of electric buses. Mumbai and Delhi now account for 49% of India’s 10,730 electric bus fleet, highlighting the growing adoption of electric public transportation.

Government Support Drives Growth

The Indian government has been proactive in supporting the EV sector, driven by concerns about the environment and energy security. In 2024, the government introduced the PM E-Drive scheme, the third demand-side initiative aimed at accelerating EV adoption. This initiative focuses on establishing robust charging infrastructure and promoting the growth of a strong EV manufacturing ecosystem in India.

These measures reflect the government’s commitment to advancing electric mobility and fostering a sustainable future for the country.