Electric vehicle (EV) sales are set to reach a record-breaking 1.94 million units in 2024, a significant increase of 26.5% compared to 2023. According to data from the Ministry of Road Transport and Highways (MoRTH), this surge increased EV penetration to 7.46%. , up 6.39% from last year.
The steady growth underlines the growing popularity of EVs as they continue to capture a larger share of the domestic market. A major factor driving this expansion was the introduction of the e-Drive scheme, which reintroduced low subsidies for cargo electric three-wheelers, significantly aiding the growth of the sector.
India’s EV industry is set for even bigger milestones due to supportive measures and changing consumer preferences. Monthly sales trends in 2024 revealed fluctuations influenced by policy adjustments and seasonal demand. October was the strongest month with sales of 2,19,482 units due to festive shopping and subsidy programs.
Of the 26.04 million vehicles sold throughout the year, petrol variants dominated with 73.69% share, which is around 19.18 million units. The share of diesel models was 10.05% (about 2.62 million units), while alternative fuel options including hybrid and CNG vehicles were 9.87%.
In 2024, for every EV sold, approximately 12.43 vehicles powered by petrol, diesel or hybrid were purchased, showing a steady shift towards green alternatives. This marks a significant improvement from the previous ratio of 15.67 in 2023 and 21.05 in 2022.
Looking ahead to 2025, the Indian passenger vehicle market is set to witness significant growth as many new models are set to be launched across various segments. Maruti Suzuki, Hyundai, Tata, Mahindra, MG, Kia and other automakers are gearing up to launch new zero-emission vehicles, drive development and increase EV adoption.
