Electric vehicle (EV) sales in India are slowing, according to the latest data for June 2024. While the total retail sales of two-wheelers, three-wheelers, passenger vehicles and commercial vehicles rose 16 percent year-on-year to 8,42,217 units in the first half of 2024, the number for June—although up 6 percent at 1,08,742 units over the year-ago period—is the lowest monthly figure since July 2023. As compared to May, the drop is about 14 percent.
Electric passenger vehicle sales in Jan-Jun 2024
A total of 5,562 all-electric cars and SUVs were sold by brands such as Tata, Mahindra, MG Motor, Mercedes, BMW and Audi EVs in June. That’s a fall of 16.27 percent from the previous month and 20 percent from a year ago. These vehicles comprised slightly over 5 percent of total EV sales in June. However, their sales in the first six months of 2024 rose 21 percent on-year to 40,663 units—forming 4.82 percent of the total EV pie.
Two-, three-wheeler EV sales in Jan-Jun 2024
Sales in the largest volume segments—electric two- and three-wheelers—have been impacted by the withdrawal of the FAME II subsidy scheme on March 31, 2024 (which itself was reduced in June 2023). As a result, the companies raised prices.
These two segments’ combined share of total EV sales is an overwhelming 94 percent, with 7,91,402 units sold in H1. Of total EV sales, e-two-wheelers comprised 57.46 percent and e-three-wheelers 36.49 percent. Electric buses and heavy and light goods carriers, at 5,537 units, account for a 0.65 percent share.
In mid-March 2024, FAME II was replaced by the Electric Mobility Promotion Scheme (EMPS). Valid for four months from April 1 to July 31, 2024, EMPS has a total outlay of Rs 500 crore and aims to support the purchase of 3,72,000 EVs, including 3,33,000 two-wheelers and 38,828 three-wheelers (L5 category). While e-two-wheelers get a subsidy of Rs 5,000 per kWh with a maximum limit of Rs 10,000 per unit under EMPS, for e-three-wheelers, the subsidy is Rs 5,000 per kWh and the maximum limit is over twice that of two-wheelers.
The Indian automotive industry is banking on the rollout of the FAME scheme’s third phase to sustain the demand for EVs and enable the transition to electric mobility. On June 11, FADA president Manish Raj Singhania said, “The automotive industry is eagerly looking forward to the announcement of FAME III by the newly formed government. We believe that the introduction of new subsidies and incentives under FAME III will provide the necessary boost to EV sales and help increase their market share significantly.”
Hormazd Sorabjee
Anurag Chaturvedi
