India’s EV market sees festive season boost, reversing recent slump

India’s electric vehicle (EV) market experienced a significant revival in October, thanks to the festive season, reversing a decline that had persisted for the previous two months.

In October, EV registrations soared to 217,716 units, marking a 35 percent increase from September’s 160,237 units. This figure also sets a new record for the highest monthly sales to date.

This surge surpassed March’s 213,063 units, which had been bolstered by the final days of the second phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme, highlighting the robust demand this year.

According to data from the Ministry of Road Transport and Highways’ Vahan portal, this is the second time in 2024 that monthly EV sales have exceeded 200,000 units, bringing the total EV registrations to over 1.6 million.

Dominant Segments in the EV Market

Electric two-wheelers led the market with 954,241 units sold, making up 59 percent of the total EV sales. Electric three-wheelers followed with 568,419 units, accounting for 35 percent. Electric cars lagged significantly with 83,802 units, while buses, trucks, and construction vehicles constituted the remaining 1 percent.

Festival Deals Drive October Sales Frenzy

October’s sales boom can be attributed to the festival season, which saw customers eager to purchase new vehicles. Original equipment manufacturers (OEMs) offered significant discounts, and the central government’s PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, launched on October 1, provided further incentives. This Rs 10,900 crore scheme over two years aims to boost growth through subsidies across various EV categories.

“The combination of incentives, festive spirit, and auspicious timing acted as the spark plug the EV market needed,” said Preetesh Singh, Specialist in CASE and Alternative Powertrains at NRI Consulting & Solutions.

Electric Two-Wheelers Surge Ahead

Electric two-wheelers saw a dramatic 50 percent increase in sales, reaching 139,097 units in October, up from 90,372 units in September. Electric three-wheeler sales also rose by 7 percent, with 67,170 units sold in October compared to 62,901 in September.

Outlook and Challenges Ahead

Sector experts remain optimistic about the future, crediting continued government support through incentives. However, they caution that the industry must enhance its products and services to sustain growing demand.

In September, the leading electric two-wheeler manufacturer faced backlash due to thousands of customer complaints about service quality. The Central Consumer Protection Authority issued a notice following over 10,000 complaints, which could affect not only the company in question but the entire segment.