India’s Electric Vehicle Sales Surge In January With Double-Digit Growth

Sales of electric vehicles (EVs) in India surged in January, recording a 19.4 percent increase month-on-month (M-o-M) and a 17.1 percent rise year-on-year (Y-o-Y), according to the latest data from the Federation of Automobile Dealers Association (FADA).

A total of 169,931 units were sold in January, reflecting the growing demand for cleaner transportation options in the country.

Growth Across All Segments

While passenger vehicles and two-wheelers saw double-digit growth both Y-o-Y and M-o-M, commercial vehicles and three-wheelers experienced slower, single-digit growth. Specifically, sales in January were as follows:

• Passenger vehicles: 11,266 units, up 32.3% Y-o-Y
• Two-wheelers: 97,734 units, up 18.8% Y-o-Y
• Commercial vehicles: 972 units, up 12.1% Y-o-Y
• Three-wheelers: 59,959 units, up 2.2% Y-o-Y

Ola Electric Leads Two-Wheeler Segment

In the two-wheeler retail segment, Ola Electric topped the sales charts with 24,336 units sold, marking a remarkable 76.7 percent increase M-o-M.

However, sales for the company fell nearly 25 percent compared to the same month last year. Other major players, such as TVS Motor and Bajaj Auto, saw strong growth, with sales up by 55 percent and 95.6 percent Y-o-Y, respectively.

Overall EV Sales Performance In 2024

The second half of 2024 saw the highest level of EV sales, peaking at 219,482 units in October, the highest monthly figure of the year.

However, sales dropped in November and December, falling to 192,575 units and 132,302 units (as of December 29), respectively. Despite the decrease, monthly sales remained above the 100,000-unit mark throughout the year.

Government Subsidies Boost EV Growth

The government’s support through the reinstatement of subsidies for cargo electric three-wheelers (e3Ws) under the PM E-DRIVE scheme has played a significant role in accelerating EV sales.

The scheme, which was halted after meeting its targets for FY25, has now been revised, with the subsidy reduced to Rs 25,000 per vehicle from Rs 50,000. In a short period, the e3W segment sold 80,546 units under this scheme.

FADA Anticipates Strong Market Growth Expected

FADA anticipates continued growth in the electric vehicle market. “Electric vehicle retail sales continued their strong trajectory in January, reflecting growing consumer acceptance and robust OEM (original equipment manufacturer) commitment to clean mobility,” said C S Vigneshwar, President of FADA.

“With over 30–35 new EV launches expected this year, we anticipate a significant rise in market share across all segments, from two and three-wheelers to passenger and commercial vehicles. The future of electric mobility looks exceedingly bright.”

EV Market Expected to Grow Significantly by 2030

The EV market in India is projected to grow at a compound annual growth rate (CAGR) of 43 percent, reaching 932,000 units by 2030. Of this, electric SUVs are expected to account for 61 percent of the demand.

In line with these optimistic projections, Road Transport and Highways Minister Nitin Gadkari has stated that EV sales in India are expected to reach 10 million units by the end of the decade, contributing to the creation of 5 million jobs in the process.

Also Read: India’s January Fuel Consumption Drops, Yet Grows 3.2% Year-on-Year