July 2024 Sees Significant EV Sales Growth Across All Segments: FADA

Electric vehicle (EV) sales in India witnessed substantial growth in July 2024, propelled by discounts and the anticipation of the Electric Mobility Promotion Scheme (EMPS) concluding, despite its recent extension. The data reflects significant year-on-year (YoY) increases across various EV segments, underscoring the expanding acceptance and demand for electric mobility in the country.

The two-wheeler (2W) and three-wheeler (3W) EV segments saw remarkable YoY growth rates of 95.94 per cent and 18.18 per cent, respectively. This surge in sales highlights the growing consumer preference for electric two-wheelers and three-wheelers as viable and sustainable alternatives to traditional petrol and diesel vehicles. According to Manish Raj Singhania, President of the Federation of Automobile Dealers Associations (FADA), the market share for 2W EVs now stands at 7.4 per cent, while 3W EVs dominate with a 57.6 per cent share.

Despite a slight YoY decline of 2.92 per cent in the passenger vehicle (PV) segment, the market share remains stable at 2.4 per cent. This stability indicates ongoing consumer interest and trust in electric cars, even as the segment faces stiff competition from traditional internal combustion engine vehicles. The marginal dip could be attributed to various factors, including market saturation and economic conditions.

The commercial vehicle (CV) segment experienced an impressive YoY growth of 124.2 per cent, achieving a market share of 1.02 per cent. This significant increase highlights the expanding adoption of electric commercial vehicles, driven by the need for more sustainable and cost-effective transportation solutions in the logistics and public transportation sectors.

Singhania credited the robust sales figures to several key factors, including attractive discounts offered by manufacturers and the anticipation of the EMPS coming to an end. Despite the scheme's recent extension, the expectation of its conclusion spurred consumers to take advantage of the available incentives. "This momentum underscores FADA's commitment to promoting sustainable mobility and supporting India's transition towards a greener future," Singhania stated.