India EV Market Share Stuck At 2% Even As Global Sales Hit Record 17 Million In 2024

Global electric vehicle (EV) adoption hit new heights in 2024 with sales exceeding 17 million units, but India was behind major economies despite some progress, according to the International Energy Agency's Global EV Outlook 2025 report.

India achieved approximately 2 per cent EV penetration last year, with sales approaching 100,000 electric cars. This performance appears modest when compared to other developing markets. Brazil witnessed its EV sales more than double to 125,000 vehicles, capturing 6.5 per cent of total automobile sales. Meanwhile, Vietnam experienced remarkable growth with EVs reaching 17 per cent market share, driven by homegrown manufacturer VinFast, which has expanded its export operations to Southeast Asian countries and the US.

China Is Global EV Leader

China maintained its position as the global EV leader, representing nearly two-thirds of worldwide electric car sales in 2024 with over 11 million units. Nearly half of all cars sold in China were electric models. 

Southeast Asia emerged as a rapidly expanding region, with electric car sales increasing by almost 50 per cent, primarily driven by Thailand, Indonesia, and Vietnam. Despite Thailand experiencing a 10 per cent reduction in absolute EV sales, its market share climbed to 13 per cent as conventional vehicle sales declined more dramatically.

Tata Motors Dominates India's EV Landscape

Tata Motors continues to dominate India's EV landscape, although the market is gradually diversifying through new partnerships and market entrants. A collaboration between JSW and Chinese automaker SAIC (operating under the MG Motor brand) divides production between local assembly facilities and Chinese imports. Chinese imports significantly influence emerging markets broadly, constituting 85 per cent of electric car sales in both Brazil and Thailand.

The IEA attributes India's restrained growth to persistent price disparities, less robust policy support for cars compared to two- and three-wheeled vehicles, and slower charging infrastructure development. During the first quarter of 2025, India's EV sales increased by 45 per cent year-over-year to approximately 35,000 units, yet its market penetration remains lower than regional counterparts.

On the global stage, EVs represented more than 20 per cent of new car sales in 2024. The IEA forecasts this figure could reach 25 per cent in 2025, with total sales expected to surpass 20 million units. While China, Europe, and the US will continue to dominate, emerging economies outside China are projected to double their EV sales to 1 million units this year.

According to the report, India's future EV market performance will largely depend on improved affordability, stronger policy direction, and expanded domestic manufacturing capacity.