India's EV market grows as incentives and investments pay off
New Delhi, Apr 30 (IANS): Government incentives and investment in infrastructure are boosting local electric vehicle (EV) manufacturing. At the same time, a slew of policy measures and improvements in infrastructure are helping to bring the market closer to the 2030 target.
According to Counterpoint's latest 'India Passenger Vehicle Model Sales Tracker', India's passenger vehicle (PV) sales grew 4.6 per cent year-on-year to over 4.3 million units in 2024. Battery electric vehicles (BEVs) accounted for 2.5 per cent of the total PV sales, a growth of 16 per cent year-on-year.
The increase in passenger BEV sales can be attributed to the launch of several new models, including Tata Curve.EV, MG Windsor, BYD Seal, BYD Emax 7 and Tata Punch.EV Refresh.
The Indian government has set ambitious targets for EV adoption. The goal is to achieve 30 per cent penetration in the passenger vehicle segment, 80 per cent in the combined two-wheeler and three-wheeler segment and 70 per cent in the commercial vehicle segment by 2030.
According to automotive market analyst Abhik Mukherjee, the US tariff hike for automobiles and their components poses a threat to India's growing component exports. However, it also creates an opportunity to increase component exports to other markets. Maruti Suzuki, India's largest PV company, and international BEV specialists are going to enter the Indian market with competitively priced affordable and premium models from Tesla and Winfast. This is expected to capture 5 percent of the PV market by the end of 2025.
Mukherjee said that the process of adoption of EVs in the two-wheeler segment is progressing rapidly. Electric two-wheelers accounted for 6.2 percent of total two-wheeler sales in 2024, an increase of 36 percent compared to the same period last year. Electric two-wheelers are increasingly being used for last mile deliveries and micro-mobility applications due to incentives and tax exemptions. "Food delivery and quick commerce companies are expanding the use of electric two-wheelers to promote a more sustainable and greener future," the report said. Moreover, urban commuters are preferring EVs over traditional powertrains for their daily travel needs. "