Counterpoint Research conducted an analysis indicating a substantial surge in India's electric vehicle (EV) market by 2024. Their projections reveal an expected 66% surge versus sales the year prior, potentially representing roughly four percent of overall passenger vehicle (PV) sales.
Projected Growth Projections of India's Electric Vehicle Market
Moving forward, this report anticipates that by 2030 electric vehicle sales in India may account for roughly one-third of annual PV sales.
Market Dynamics And Competitors
Tata Motors was an obvious leader in the EV sector in 2023, taking up nearly two-thirds of market share. But according to reports from 2025 onwards, Maruti Suzuki could vie with Tata Motors for supremacy of India's EV market.
Industry Expansion And Investments
Vietnam-based EV brand VinFast recently unveiled plans to open a manufacturing plant in Tamil Nadu, signaling their keenness in investing in India's growing EV industry.
Employing Sustainable Technologies
As noted by the Counterpoint report, this development highlights an emerging shift towards environmentally-friendly technologies in automotive applications.
Focus on Electric Vehicle Battery Manufacturing
Liz Lee, Associate Director at Counterpoint Research emphasizes the need to ramp up electric vehicle battery manufacturing in India for increased sales. Major investments by Ola, Reliance New Energy and ACC Energy Storage along with initiatives like Make in India are expected to drive lower production costs and stimulate more EV sales.
Government Initiatives And Their Support
India has taken significant strides toward encouraging investments in its electric vehicle (EV) sector with measures such as its PLI Scheme for Advanced Chemistry Cells (ACC) and reductions of import duties for those priced below $35,000. Such moves have proven pivotal for driving uptake within this market segment.
Factors Driving Electric Vehicle Sales Growth
In 2023, electric vehicle sales nearly doubled over their 2022 counterpart, while overall passenger vehicle sales increased 10% and captured 2.1% of the PV market. Key contributors to this upward trend included growing urban consumer interest, government backing, infrastructure upgrades and greater awareness of climate change.
Notable Industry Performances
Mahindra & Mahindra saw an unprecedented 2,476% surge in market share thanks to the incredible success of its all-electric SUV XUV400. Other companies like MG Motor and BYD also excelled, and BYD became one of India's five EV brands.
