The market for electric vehicles (EVs) in India has grown significantly; in the financial year 2024, 1.7 million EVs were sold. This increase shows the growing acceptance and demand for EVs across the nation. Electric two-wheelers (E2Ws) have become the market leader among the several segments, accounting for more than half of all EV sales. 

Dominance of Electric Two-Wheelers

The electric vehicle (EV) sector in India is gaining all thanks to the remarkable 28% increase in sales of electric two-wheelers year over year. E2Ws accounted for 41,35,077 units in FY2024, demonstrating both their growing popularity and the substantial shift towards sustainable travel.

Leading companies like Ola Electric, TVS Motor, and Ather, who collectively control more than 65% of the market share, are primarily responsible for this rise. Their cutting-edge products, aggressive pricing strategies, and strong after-sales assistance have been responsible in driving the E2W market.

Geographic Distribution and Market Leaders

According to the survey, the EV market is dominated by five states: Rajasthan, Karnataka, Maharashtra, Tamil Nadu, and Uttar Pradesh, which together account for more than 50% of sales. Due to their active growth of infrastructure and EV policies that encourage EV adoption, these states have become hotspots for EV adoption.

Growth in Other EV Segments

Even while E2Ws are leading the way, other EV markets have had impressive growth as well. With a 55% annual growth rate, passenger electric three-wheelers (E3W P) already account for about 32% of the market. With market shares of 9.01%, 7.14%, and 5.08%, respectively, Mahindra Last Mile Mobility, YC Electric Vehicle, and Saera Electric are the top manufacturers in this category.

Sales of electric cars have increased by more than 80% over the previous year, showing that this market has not lagged. With a market share of almost 65%, Tata Motors continues to be the leading competitor, followed by MG Motor at 13%. This suggests that consumers are becoming more and more inclined toward electric vehicles due to developments in battery science, longer driving range, and better infrastructure for charging them.

Expansion of Electric Buses

Sales of electric buses increased by 84%, marking another notable boost in the industry. With almost 75% of the market, the leading companies are Tata Motors, JBM Auto, and Olectra Greentech. The government’s initiative to electrify public transportation in order to lower urban pollution and enhance air quality is reflected in the increase in sales of electric buses.

Charging Infrastructure and Battery Supply

The infrastructure for EV charging is expanding to support this huge demand in EV usage. Leading providers deployed approximately 41,000 fast and slow charging sites by the end of FY2024. Furthermore, there has been a steady supply of battery packs, with well-known manufacturers like iPower, Trontek, Amara Raja, and Inverted fulfilling the rising need.

Conclusion

The huge demand in the electric vehicle (EV) sector in India, primarily driven by electric two-wheelers, represents a significant transition towards eco-friendly transportation. Government incentives, better infrastructure, and improved consumer knowledge all encourage this trend. India’s acceptance of electric vehicles indicates that the country’s transportation environment will likely become more sustainable and green in the future.