FY2024 Sets New Milestone: Indian Electric Vehicle Sales Surge by 41%

Key Highlights:
•    FY2024 breaks records with Indian EV sales up 41%, reaching 1.66 million units.
•    March 2024 hits a new high with nearly 197,000 EVs sold, driving an annual record.
•    Government introduces Rs 500 crore EMPS subsidy plan for EVs from April to July 2024.
•    Subsidies up to Rs 10,000 per unit aim to boost sales before subsidy expiration.
•    The three-wheeler segment leads growth, up 57% year-on-year, showing India's commitment to cleaner transport.

FY2024 finished on a good note for the Indian electric vehicle (EV) market. The Indian electric vehicle (EV) market achieved a new record for sales across various vehicle segments. This year provided the best-ever 12-month sales for the electric two-wheeler, three-wheeler, and passenger vehicle sub-segments. Sales reached a new high of nearly 197,000 units in March 2024. FY2023 retail sales of 1.66 million units represent a 41% increase over the previous year. 

According to retail data released on the India's Vahan website, a total of 16,65,270 EVs were purchased in India between April 1, 2023, and March 31, 2024, which equates to 4,562 EVs sold per day in FY2024 versus 3,242 EVs in FY2023. This shows a continuous consumer and market demand for EVs throughout FY2024, despite high costs of petrol, diesel, and CNG. However, after a long break, CNG prices were reduced significantly in early March 2024.

March 2024 was an incredible month for India's EV industry. The domestic EV industry performed remarkably, with over 197,000 units sold in the last month of FY24 and the total number reaching a record 1.66 million units.

Government Introduces EMPS

With the FAME II subsidy plan which expired on March 31, 2024, and the industry pushing the government to extend the EV subsidy, a new scheme named the Electric Mobility Promotion Plan 2024 (EMPS) was launched by the government on March 13. With a total cost of Rs 500 crore, it will continue to provide incentives for electric two- and three-wheelers for four months, from April 1 to July 31, 2024.

EMPS is intended to fund 372,000 EVs, comprising 333,000 two-wheelers and 38,828 three-wheelers (25,238 L5 category EVs and 13,590 rickshaws and e-carts). While e-two-wheelers receive a subsidy of Rs 5,000 per kilowatt-hour (kWh), the maximum limit is Rs 10,000 per unit (limited at Rs 333 crore). Similarly, e-rickshaws and carts receive a subsidy of Rs 5,000 per kWH, with a maximum of Rs 25,000 per unit (limited at Rs 33.97 crore).

As a result of the lower subsidies, prices for both e-two- and three-wheelers are likely to rise from April 1, 2024, resulting in a flood of retail sales in March.

Three-Wheeler Segment Leads the Charge

Electric Three-wheelers segment, which include passenger and cargo transportation models, sold 630,080 units, up 57% year on year (FY2023: 402,098 units), accounting for 38% of total EV sales in FY2023.

Also Read: February 2024 Electric Three-wheeler Sales Report: YC Electric Emerges as Top Choice

Future Outlook

India, the world's third-largest automobile market, is one of several global markets actively promoting EV awareness and adoption to solve its major air pollution problem. India is home to over 20 of the world's most polluted cities. By 2030, the government expects EVs to account for 70% of commercial vehicle sales, 30% of passenger vehicles, 40% of buses, and 80% of two and three-wheelers.

CMV360 Says

FY2024 was a remarkable year for electric vehicles in India, with sales hitting record highs across the board. With new subsidies and government backing, the future of EVs looks bright, leading the way for a cleaner and greener transport future.