IGI Logo

 Driven by rising consumer interest, government initiatives and infrastructure development, India’s EV sales nearly doubled in 2023 and are likely to grow 66 per cent this year, a report showed on Friday.

Overall, India’s passenger vehicle (PV) sales grew 10 per cent (year-on-year) to surpass 4 million units, its EV sales nearly doubled, rising 97 per cent YoY to account for 2 per cent of the overall PV sales.

By 2030, EVs are expected to represent nearly one-third of India’s PV market, signaling a robust long-term growth trajectory in the country’s automotive sector, according to Counterpoint Research.

“As the infrastructure and consumer traction develops, we will see the entry of newer players such as Tesla and fast-growing Chinese brands like Xiaomi, which will catalyse innovation and competition in the world’s fourth-largest PV market,” said Research Vice President, Neil Shah.

“We will see players in the broader value chain prioritising India’s market not only to target domestic consumption but also for technology R&D and export opportunities,” he added.

With a strong portfolio and strategic tie-up with Uber, Tata Motors held more than two-thirds of the country’s EV market last year. However, it lost a significant share to Mahindra & Mahindra and BYD.

Recording a 2,476 per cent increase with just one model in its portfolio, Mahindra & Mahindra was the fastest-growing brand in 2023, followed by BYD and MG Motor, said the report.

“EV sales in India are expected to increase by 66 per cent in 2024 to constitute 4 per cent of total PV sales,” the report mentioned.

Maruti Suzuki’s entry into the EV market is expected to shake up Tata’s dominance.

“Moreover, VinFast’s move to build a factory in India’s Tamil Nadu state highlights the growing interest and investment in EV manufacturing in the country,” the report noted.