In the fiscal year 2023-24, India experienced a remarkable surge in its automotive sector, selling nearly 4 million cars. This figure represented 16% of the total vehicle sales in the country for the period, reflecting the sustained demand and growth within the industry. Among these sales, the electric vehicle (EV) segment demonstrated significant progress, underscoring a pivotal shift in consumer preferences and policy direction toward sustainable transportation.
The electric car market, although still a small fraction of the overall automotive sales, showed substantial growth. During FY 2023-24, India saw the sale of 90,468 electric cars, marking a staggering 91% increase from the previous fiscal year. This growth is indicative of a broader acceptance and interest in electric vehicles among Indian consumers, driven by factors such as environmental concerns, government incentives, and advancements in EV technology.
The market share of electric cars concerning the total car sales also saw a notable rise. In FY 2023-24, electric cars constituted 2.3% of the total car sales in India, up from 1.3% in the preceding fiscal year. This increase reflects the accelerating pace at which electric vehicles are penetrating the market, highlighting the efforts of both the government and automotive manufacturers in promoting EV adoption.
From 2015 onwards, the cumulative registration of electric cars in India reached 168,000 by March 2024. This cumulative figure underscores the gradual yet steady growth of the electric vehicle sector over the past decade. It also signifies the increasing trust and reliance of consumers on electric mobility solutions.
The auto industry has also responded robustly to the growing demand for electric vehicles. Major car manufacturers have introduced a variety of electric models, catering to different segments of the market. From affordable compact cars to high-end luxury EVs, consumers now have a wide range of options to choose from. Furthermore, advancements in battery technology have led to increased driving ranges and reduced charging times, making electric cars more practical and appealing.
The remarkable growth in the electric vehicle segment in India is a positive sign for the country’s automotive industry and its environmental goals. As the world moves towards greener and more sustainable solutions, the Indian market’s increasing adoption of electric vehicles reflects a significant shift towards reducing carbon emissions and combating climate change.
Looking ahead, the trend of rising electric vehicle sales is expected to continue. With ongoing improvements in technology, further government support, and a growing awareness of environmental issues, the future of electric mobility in India appears promising. The progress made in FY 2023-24 serves as a strong foundation for the continued expansion and success of the electric vehicle market in the coming years.
