According to a recent report by Counterpoint Research, India witnessed a nearly double surge in electric vehicle (EV) sales in 2023, driven by growing consumer interest, government initiatives, infrastructure development, and environmental concerns. The report forecasts a further 66% increase in EV sales in 2024, accounting for 4% of total passenger vehicle (PV) sales.
In 2023, despite a 10% year-on-year growth in overall PV sales, EV sales nearly doubled, constituting 2% of the total PV sales. Factors contributing to this surge include increasing urban consumer interest, government policies, infrastructure development, and environmental awareness.
Tata Motors, with its strategic partnership with Uber, dominated more than two-thirds of the EV market in 2023, although it faced competition from Mahindra & Mahindra and BYD. Mahindra & Mahindra recorded a remarkable 2476% growth with its all-electric SUV XUV400, making it the fastest-growing brand in 2023. BYD, despite having a limited lineup, saw over 1500% growth and secured a position among the top five EV brands in India.
Looking ahead, EV sales are projected to increase by 66% in 2024, constituting 4% of total PV sales. By 2030, EVs are expected to represent nearly one-third of India’s PV market, indicating a robust long-term growth trajectory. The entry of Maruti Suzuki into the EV market and VinFast’s investment in a manufacturing facility in Tamil Nadu are expected to intensify competition and drive innovation in the industry.
The report also highlights the growth potential of India’s EV ecosystem, driven by investments in battery manufacturing and government incentives. The reduction in import duties on EVs and initiatives like the PLI scheme for Advanced Chemistry Cells are expected to attract significant investments and accelerate India’s journey toward becoming a major player in the global EV market.
