EV sales expected to grow by over 65% in 2024, double its overall market share

• The Indian EV (electric vehicle) industry reported nearly a 100% increase in sales in 2023.
• The sale of EVs is expected to grow by 66% in 2024 and double its share when it comes to the overall passenger vehicle (PV) segment.
• EVs are expected to account for nearly a third of the overall PV shipments by 2030.

Indian EV makers had a great year in 2023, nearly doubling their sales compared to 2022, despite the overall passenger segment reporting only a 10% increase in sales.

According to a report by Counterpoint Research, Indian EV sales nearly doubled in 2023 and now account for 2% of the overall passenger vehicle (PV) sales. The reason for the increase in shipments includes government initiatives such as the FAME subsidy (Faster Adoption and Manufacturing of Electric Vehicles), infrastructure development, concerns over climate change and more.

Tata Motors leads the EV race

Tata Motors leads the electric vehicles race in India, accounting for 70% of the electric cars sold in India in 2023. The company reported a year-on-year growth of 58% in 2023, but its share declined from 87% in 2022 to 70% in 2023.

MG Motor, which had a share of 9% in India in 2022 reported a growth of 186% and accounted for 14% of the sales in 2023.

Mahindra & Mahindra has emerged as the fastest growing brand in 2023, reporting a 2476% growth and accounting for 7% of the market share. Mahindra sells the XUV400, the only electric car in the country.

BYD also reported excellent growth in the Indian electric vehicles industry, recording a growth of 1538%.

EV sales to double in 2024

According to Counterpoint, the share of electric vehicles in the overall passenger vehicles segment will double from 2% to 4% in 2024. EV sales in India are expected to grow by 66% in 2024.

According to the report, the share of electric vehicles is expected to rise from the present 2% to 29% by 2030.

“The EV ecosystem is in a fairly nascent stage. 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 catalyze innovation and competition in the world’s fourth-largest PV market,” said Neil Shah, research vice president, Counterpoint Research.

India’s new EV policy to give a boost

The Indian government’s recent EV policy is expected to boost the EV industry, making it easier for international companies to enter the market.

As part of the policy, the companies will be allowed to import 8,000 completely built-up (CBU) electric cars per year at an import duty of 15% on cars costing above $35,000 (approx. ₹28.99 lakh). At present, India levies a tax of 70% to 100% on imported cars, based on their value. This means that the import duty has been reduced by up to 85% for companies under this scheme.

Tesla is expected to soon enter the Indian market, with the company reportedly searching for appropriate places for its factory in the country.

Vietnamese EV maker VinFast recently announced its plans to invest $2 billion in India and has started constructing its first factory in Tamil Nadu.

“Government initiatives such as the PLI scheme for Advanced Chemistry Cells (ACC) and the recent reduction in import duties on EVs under $35,000 to 15% are game changers. All this not only opens doors for Tesla but also signals India’s readiness to welcome significant investments and foster a new ecosystem for EVs and their component suppliers,” said Liz Lee, associate director, Counterpoint Research.

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