EV sales to rise 66% this year after nearly doubling in 2023: Report

Electric-vehicle sales in India are expected to rise 66% this year after nearly doubling in 2023 as state subsidies help fuel demand and supporting infrastructure comes up in the country, according to research firm Counterpoint.

WHY IT'S IMPORTANT

The rapid growth in sales comes at a time when EV growth in other key markets such as the United States and China are slowing.

The report forecasts that by 2030, EVs are expected to represent nearly a third of India's personal vehicle market.

CONTEXT

India's EV market, small but growing, is dominated by domestic carmaker Tata Motors. Electric models made up 2% of total car sales in 2023 but the government is targeting 30% by 2030.

The Indian government last month lowered EV import taxes on certain models if carmakers commit to invest at least $500 million and start domestic manufacturing within three years, a move seen as a win for foreign automakers including Tesla.
 

Reuters reported on Thursday that Tesla has begun production of right-hand drive cars at its plant in Germany for export to India later this year.

Vietnamese automaker VinFast also plans to invest $2 billion in the country and in February began constructing a factory in the southern state of Tamil Nadu.

BY THE NUMBERS

Tata Motors held more than two-thirds of the country's EV market last year, but lost ground to Mahindra & Mahindra and Chinese automaker BYD, according to the Counterpoint report.

Mahindra & Mahindra recorded EV sales growth of nearly 2,500% last year with just one model, the all-electric SUV XUV400.

BYD also made a big splash in the region last year, reporting over 1,500% in EV sales growth in the country with just two models in its India line-up, the e6 MPV and Atto 3 SUV.