India’s electric vehicle (EV) sector achieved a remarkable milestone in 2024, with sales soaring by 26.5% year-on-year to reach 1.94 million units by December 29, according to data from the Ministry of Road Transport and Highways (MoRTH). This growth, from 1.5 million units in 2023, raised the EV penetration in India to 7.46%, up from 6.39% in the previous year. The surge in sales underscores the steady rise of EVs as they continue to close the gap with traditional internal combustion engine vehicles.
EV growth amid dominance of petrol vehicles
Despite this progress, petrol vehicles maintained their dominance in 2024, accounting for 73.69% of the 26.04 million vehicles sold, equivalent to 19.18 million units. Diesel vehicles followed with a 10.05% share, or 2.62 million units, while the remaining 9.87% comprised vehicles powered by alternative fuels such as petrol-CNG, hybrid, and compressed natural gas (CNG).
On average, 12.43 petrol, diesel, CNG, or hybrid vehicles were sold for every EV in 2024—an improvement from 15.67 in 2023 and 21.05 in 2022.
Monthly sales trends
The year began with strong EV sales in January and February, with 1,45,064 and 1,41,740 units sold, respectively. March saw a significant spike, with 2,13,068 units, marking the first major surge of the year. Sales dipped slightly in April and May due to the conclusion of the FAME-II scheme on March 31, leading to price increases.
October marked the peak of 2024 with 2,19,482 units sold, driven by the festive season and the launch of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.
Policy support boosts momentum
The Ministry of Heavy Industries (MHI) reinstated subsidies for cargo electric three-wheelers under the PM E-DRIVE scheme, boosting industry growth. Although the subsidy was reduced from ₹50,000 to ₹25,000 per vehicle, the scheme led to 80,546 units sold within months of its implementation.
India’s EV sector continues its upward trajectory, supported by evolving policies and growing consumer interest, setting the stage for a transformative future.
