The Indian electric vehicle (EV) industry wrapped up fiscal 2024 on a high note, with record-breaking sales across different types of vehicles.
The year saw an impressive 41 per cent annual increase in sales, with 1.66 million EVs sold. March alone set a new monthly record with over 197,000 units sold, in part due to the rush to buy before the end of the FAME-II subsidy scheme. The government has introduced the Electric Mobility Promotion Scheme 2024, with a budget of Rs 500 crore to continue supporting the purchase of electric two and three-wheelers until July-end this year.
Data from the government's Vahan website shows that from April 2023 to March 2024, India saw the purchase of 1,665,270 EVs, averaging 4,562 EVs sold each day, a significant jump from the 3,242 daily sales the previous year. This increase reflects the growing interest in EVs, despite high prices for petrol, diesel, and CNG.
Government sources told Business Today TV that the policy focus on EV manufacturing will show results by further boosting the manufacturing ecosystem.
Two and three-wheelers led the surge in EV sales. Two-wheelers accounted for 56 per cent of all EV sales with 29 per cent year-on-year growth, while three-wheelers saw a 57 per cent growth and made up 38 per cent of sales. Together, these vehicles represented 94 per cent of all EV sales in the country.
Electric cars and SUVs also saw a notable increase, with sales jumping 89 per cent from the previous year to 90,033 units.
Rohan Shravan, founder of Tresa said looking ahead, the future of India's EV industry appears exceptionally promising. "With continued government backing, technological innovations, and a thriving ecosystem of manufacturers, suppliers, and service providers, the industry is poised for exponential growth in the coming years," he said.
The Indian government has approved a new electric vehicle initiative that includes tax incentives, aiming to establish India as a leading manufacturing centre. This move is part of India's efforts to draw in international capital for domestic production from major companies, including Tesla.
Prime Minister Narendra Modi at the India Today Conclave said that in next five years India would see record growth in electric vehicle manufacturing.
India intends to reduce import duties on certain EVs for companies that pledge to invest more than $500 million and set up manufacturing plants within three years. This significant policy is designed to lure big players like Tesla and highlights India's commitment to attracting foreign investment to boost local manufacturing.
India aims to reduce its carbon emissions by 45 per cent by 2030 and sees EVs as crucial to this goal. Government policies like tax breaks, subsidies, and lower GST rates are encouraging the adoption of EVs. By 2030, EVs are expected to make up a significant portion of the automotive market, potentially generating $100 billion in revenue. Factors like cheaper batteries, government incentives, growing consumer awareness, and more EV models are likely to drive this demand.