Electric Vehicle Sales Surge in 2024
The electric vehicle (EV) market in India experienced a notable surge in sales towards the end of 2024. Price cuts and new models contributed to a 20% increase in sales, bringing the total number of electric cars sold to nearly 100,000 units. This growth occurred despite ongoing concerns about the adoption of EVs, including issues related to public charging infrastructure, battery longevity, and resale value. As the industry continues to evolve, major players are making significant strides to capture a larger share of the market.
Growth in Electric Vehicle Sales
According to data from the Federation of Automobile Dealers Associations (FADA), electric vehicles accounted for 2.4% of total auto retail sales in 2024, up from 2.1% in 2023. This increase is significant, considering the overall auto retail market reached 40.7 lakh units. While electric vehicles are gaining traction, internal combustion engine (ICE) vehicles still dominate the market. ICE vehicles, which include petrol, diesel, and hybrid models, continue to hold a substantial share, indicating that the transition to electric mobility is still in its early stages.
Tata Motors emerged as the leader in the EV market, selling 61,496 units in 2024, a slight increase from 60,100 units in 2023. However, the company’s market share in the electric segment decreased from 73% to 62%. Tata Motors offers electric versions of popular models such as the Tiago hatchback, Tigor sedan, and Nexon SUV. The company plans to expand its electric lineup further with new launches, including electric versions of the Harrier and Safari SUVs.
Competitive Landscape and Innovations
JSW MG Motor ranked second in EV sales, achieving remarkable growth of 125% in 2024. The company sold 21,484 units, up from 9,526 units the previous year. This surge was largely driven by the introduction of the Windsor SUV, which features a ‘battery as a service’ model. This innovative approach allows customers to rent batteries, making EV ownership more accessible. JSW MG expressed its commitment to continuous innovation, stating that it plans to introduce new products every six months.
Despite the positive sales figures, both Tata Motors and JSW MG implemented significant price cuts to attract buyers. These reductions were necessary as demand began to slow, and the market faced challenges. Industry analysts believe that the upcoming year could see further growth in EV sales, driven by major launches from established automakers such as Maruti Suzuki and Hyundai.
Future Prospects for Electric Vehicles
Looking ahead, the electric vehicle market is poised for further expansion. Maruti Suzuki plans to enter the EV market with the eVitara, which will also be sold by its technology partner, Toyota. Hyundai is set to launch an electric version of its popular Creta SUV, while Mahindra and Mahindra will introduce two new electric models, the BE6 and XEV 9e. These developments indicate a growing commitment from traditional automakers to embrace electric mobility.
Additionally, government incentives aimed at establishing a fast-charging network are expected to enhance the appeal of electric vehicles. As infrastructure improves and more models become available, consumer confidence in EVs may increase. The combination of innovative products and supportive policies could lead to a significant shift in the automotive landscape, making electric vehicles a more viable option for a broader audience.
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