The Aryavarth Express
Agency(Mumbai): India’s electric vehicle (EV) market is poised for substantial growth, with sales projected to rise by 66% in 2024 after nearly doubling the previous year. This surge is supported by state subsidies and the expansion of necessary infrastructure, according to insights from research firm Counterpoint.
This growth comes in stark contrast to slowing EV sales in other major markets like the United States and China. Counterpoint predicts that by 2030, EVs will constitute nearly a third of all personal vehicle sales in India.
Currently, the Indian EV market, though still in its nascent stages, is predominantly led by Tata Motors. EVs accounted for 2% of the total car sales in India in 2023, but with the government aiming for a 30% share by 2030, significant growth is anticipated.
In efforts to boost this sector, the Indian government recently reduced import taxes on EVs for manufacturers committing to at least $500 million in local investment and to start production within three years. This policy adjustment has been welcomed by international carmakers, including Tesla, which has initiated the production of right-hand drive vehicles in Germany for the Indian market.
Vietnamese automaker VinFast is also entering the Indian market with plans to invest $2 billion and has started building a factory in Tamil Nadu.
Despite Tata Motors’ dominance in the Indian EV market last year, holding more than two-thirds of market share, it faced strong competition from Mahindra & Mahindra and BYD. Mahindra & Mahindra saw its EV sales skyrocket by nearly 2,500% last year with its all-electric SUV XUV400, while Chinese automaker BYD reported a 1,500% increase in sales with two models, the e6 MPV and Atto 3 SUV.
The dynamic growth of the EV market in India reflects broader shifts in the global automotive industry, driven by innovations and increasing environmental consciousness among consumers and governments alike.