India’s electric passenger vehicle (PV) market is set to end 2024 on a high, with sales nearing the 100,000-unit mark, a significant rise from 82,238 units sold in 2023. According to Vahan data, approximately 95,400 registrations have been recorded as of December 23, driven by increased demand during the festive season.
Festive Season Boost
The electric PV segment regained momentum during the festive season, led by the launch of JSW MG Motor’s MG Windsor. This new model introduced a Battery-as-a-Service (BAAS) option, making it more affordable and drawing considerable interest from buyers. Puneet Gupta, Director at S&P Global Mobility, highlighted the model’s success, stating, “MG Windsor’s innovative pricing and marketing strategy created a buzz in the market.”
Challenges and Opportunities in the EV Market
Despite the festive season gains, the EV segment’s penetration in the PV market remains low at 2%. Charging infrastructure availability continues to be a significant hurdle, unlike hybrid vehicles, which are gaining popularity due to their convenience and independence from such infrastructure.
The introduction of hybrid models by Maruti Suzuki and Toyota in 2024 has intensified discussions about India’s future as an EV or hybrid-focused market. Gupta added, “Globally, there is some resistance to EV adoption in specific regions, but for India, the shift to EVs is inevitable. By 2025, we expect a turning point in the adoption of electric and alternative fuel vehicles.”
Upcoming Launches and Market Expansion
In the coming months, major players like Maruti Suzuki, Toyota, Hyundai, and Kia are expected to introduce new EV models, adding to the segment’s growth. Mahindra has already unveiled its latest electric offerings. Affordable pricing, advancements in charging infrastructure, and declining battery costs are likely to accelerate EV adoption over the next two to three years, according to Rohan Kanwar Gupta, Vice-President & Sector Head at ICRA Ltd.
Market Share Leaders
Tata Motors retained its dominance in 2024, securing over 60% of the market share in the electric PV segment. JSW MG Motor followed with 21%, and Mahindra & Mahindra accounted for about 7%. In the luxury EV space, BMW and Mercedes-Benz continued to lead.
Transitioning to a Greener Future
India’s journey toward an EV-dominated car market is expected to be gradual, influenced by varying consumer needs and price sensitivities. Experts predict a phased adoption of alternative fuels, including CNG, bio-CNG, ethanol, hybrids, and range-extended EVs (REEVs), before the complete transition to electric vehicles.
