India Tops Global Electric Three-Wheeler Market Again in 2024

Key Highlights:

• India is the world’s largest market for electric three-wheelers in 2024, selling about 7 lakh vehicles and beating China again.
• The PM E-DRIVE scheme helped launch over 3 lakh electric three-wheelers in 2024, boosting sales.
• India’s electric two-wheeler market grew with 220 companies and 13 lakh electric two-wheelers sold in 2024.
• Electric car sales in India rose by 45% in early 2025, reaching nearly 35,000 units.
• Indian-made electric vehicles are priced under $20,000, making EVs more affordable; electric buses grew to over 11,500 by 2024.

India has once again become the world’s largest market for electric three-wheelers, beating China for the second year in a row. In 2024, sales in India jumped by 20%, reaching around 7 lakh vehicles, as per the International Energy Agency’s (IEA) Global EV Outlook 2025 report. The report also highlights that the three-wheeler market is mainly dominated by just two countries, India and China. which together make up over 90% of the global sales of both electric and regular three-wheelers.

Over the last three years, China’s electric three-wheeler market has stayed below 15% electrification. Meanwhile, India moved ahead of China in 2023 and became the largest electric three-wheeler market. This lead continued in 2024, with India seeing nearly 7 lakh electric three-wheeler sales, a growth of about 20% compared to the previous year.

The International Energy Agency (IEA) report says India’s strong growth in electric three-wheeler sales is expected to continue, thanks to government support through the new PM E-DRIVE scheme. This program helped launch over 3 lakh electric three-wheelers for commercial use in 2024 alone.

The report also highlights that China, India, and Southeast Asia together made up about 80% of global two- and three-wheeler sales in 2024. In these regions, two- and three-wheelers are the main mode of personal transport.

India’s Electric Two-Wheeler Market Sees Growth and More Players in 2024

India’s electric two-wheeler market continued to grow in 2024, with 220 manufacturers (OEMs) active, up from 180 in 2023, according to the IEA report. Despite the rise in companies, just four major players sold 80% of the 13 lakh electric two-wheelers sold that year. Electric two-wheelers made up 6% of the total two-wheeler market in India. Although electric models still cost more than regular two-wheelers upfront, the growing competition is pushing companies to launch more budget-friendly options.

New PM E-DRIVE Policy Makes Electric Two-Wheelers More Affordable

According to the IEA report, government policies are helping reduce the price gap between electric two-wheelers and petrol ones. The new PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) policy continues the financial support that was earlier given under FAME-II and the Electric Mobility Promotion Scheme. This support is making it easier for people to choose electric two-wheelers by lowering their cost.

India Sees 45% Rise in Electric Car Sales in Early 2025

Electric car sales in India saw a strong 45% year-on-year growth in the first quarter of 2025, reaching nearly 35,000 units for the first time. The IEA report also noted that in 2024, Chinese electric vehicles made up less than 15% of India’s EV sales. This is mainly because of high import duties and the growing availability of affordable, locally manufactured electric cars.

India Offers Cheaper Electric Cars, Sees Growth in E-Buses

In 2024, all battery electric vehicles (BEVs) made by Indian carmakers were priced under $20,000. In contrast, none of the imported Chinese BEVs were available below that price. This keeps electric car prices more affordable for Indian buyers.

The average price difference between electric and petrol/diesel cars dropped to under 15% for small cars and about 25% for SUVs in 2024, making EVs more competitive. The IEA also noted strong progress in India’s electric bus sector. Since 2020, the number of electric buses has grown nearly four times, rising from under 3,000 to over 11,500 by the end of 2024.

Also Read: Electric 3W L5 Sales Report April 2025: MLMM and Bajaj Auto Emerge as Top Choice

CMV360 Says

India’s strong growth in electric vehicles shows how government support and local manufacturing can make clean transport more affordable and popular. This progress helps India lead globally in electric three-wheelers and sets a positive example for the future of mobility.