The Indian automotive industry is witnessing a significant shift as traditional Internal Combustion Engine (ICE) vehicles give way to Electric Vehicles (EVs) across various segments as per JMK Research. From personal vehicles like two-wheelers and cars to public transportation including three-wheelers and buses, the transition towards electric mobility is steadily gaining momentum, though the adoption rate varies across different vehicle categories.
Two-Wheeler Segment: Steady Progress
In the two-wheeler sector, EV penetration stood at 5.12% in 2023, showing promising growth. Hero MotoCorp, the leader in the ICE market, made its entry into the EV space with the launch of the VIDA V1 electric scooter in October 2022. By 2024, EVs accounted for 0.74% of Hero’s total vehicle sales, a solid achievement in a short span.
Other major players, such as TVS and Bajaj, have made more significant strides. TVS saw its EV penetration rise from 6.38% in 2023 to 7.26% in 2024, while Bajaj experienced the highest growth, with EV adoption increasing from 4.04% in 2023 to 8.32% in 2024 YTD (Year-To-Date).
Three-Wheelers: Strong EV Adoption
The three-wheeler market, particularly the passenger segment, has seen remarkable growth in EV adoption, reaching a penetration of 54.85% in 2023. Bajaj Auto leads this charge, with EVs making up 7.70% of its total sales in 2024 YTD, a significant jump from just 1.21% in 2023. Piaggio and Mahindra followed suit, with 28.61% and 96.75% of their sales attributed to EVs, respectively, in 2024.
In the cargo segment of three-wheelers, EV penetration surged to 49.44% in 2024 from 41.55% in 2023. Bajaj, Piaggio, and Mahindra have all made substantial progress, with Mahindra leading the shift toward EVs, where 77.08% of its 9,527 units sold in 2024 YTD were electric.
Four-Wheelers: Passenger Cars and EVs
While the passenger car segment has seen slower EV adoption, it still rose slightly from 2.27% in 2023 to 2.39% in 2024. Tata Motors remains the market leader with 12.05% of its total car sales in 2024 YTD coming from EVs, driven by popular models such as the Nexon EV and Punch EV.
MG Motors, however, is quickly gaining ground, achieving an EV penetration of 33.77% in 2024 YTD, up from 23.75% in 2023. MG’s strong performance can be attributed to competitive pricing and feature-rich offerings.
A Changing Landscape
The transition to electric mobility in India is driven by several factors, including lower running costs, government subsidies, reduced maintenance expenses, and a competitive total cost of ownership (TCO). Leading automotive companies such as Tata, Bajaj, Hero MotoCorp, TVS, and others are making EVs more accessible and providing robust after-sales support.
While ICE vehicles still dominate the market, EVs are quickly catching up, particularly in the two-wheeler and three-wheeler segments. With ongoing launches of new electric models and manufacturers’ increasing efforts to electrify their portfolios, India’s automotive industry is on the cusp of a rapid transformation towards electric mobility.
