Electric Vehicle Sales Witness Downtick In February 2024

Sales of electric vehicles (EVs) have witnessed the lowest sales figures ever, recording just 7,267 units sold in February 2024, as per data by the Society of Manufacturers of Electric Vehicles (SMEV). This is despite manufacturers like MG Motor India and Tata Motors announcing a price cut for their EVs, in a bid to attract more customers.

February 2024 has recorded the lowest sales of EVs since September 2023, when only 6,363 EVs were sold in India. However, February 2024 also recorded a year-on-year growth of 53 per cent, with only 4,738 units sold in February 2023. In the Financial Year (FY) 2024, January recorded the highest sales with 8,407 units sold. 

According to a media report, Tata Motors is likely to reduce its production of EVs in March, April and May in what seems to be a preemptive move towards dwindling EV sales. The reports also mention that Tata Motors is planning to produce 2,200-2,500 EVs in March, as opposed to its peak production of 4,500 units per month, a few months ago. This production level is also likely to continue for the next two months. 

While MG Motor India and Tata Motors cut prices of their EVs, Mahindra has refrained from changing the prices of the only EV in its portfolio, the XUV400. The XUV400, originally launched in January 2023, received an update in January 2024. MG Motor India cut the prices of its EVs by up to ₹3.9 lakh, while Tata Motors slashed the prices of its EVs by up to ₹1.2 lakh.