India’s electric vehicle (EV) market is rapidly advancing, albeit still in its nascent stage. FY24 witnessed significant growth across all sectors of India’s EV market. Let’s explore which segments are leading the pack and what lies ahead in this exciting journey of the EV market!
What’s Happening?
According to ET Brand Equity, there has been an increase in retail sales of electric vehicles across all segments in FY24. As per the Federation of Automobile Dealers Associations (FADA), total sales of electric passenger vehicles in India reached 90,996 units in the previous fiscal year, compared to 47,551 units in FY23, reflecting a remarkable growth of 91%.
On the other hand, as per Telegraph India, the total sales of electric two-wheelers in FY24 stood at 947,087 units, marking a growth of 30.06% compared to FY23. With this increasing growth, the market share of electric vehicles in India has now risen to 5.4%.
Additionally, in the electric three-wheeler segment, FY24 witnessed total sales of 632,636 units, reflecting a growth of 56.43% on a year-on-year basis, and electric three-wheelers now hold a market share of 54.3% in the three-wheeler market.
Contributions in FY24
Tata Motors: In FY24, Tata Motors registered 64,217 electric car registrations, marking a splendid growth of 66% from the previous FY2022-23 figure of 38,728 units.
Mahindra Group: With a remarkable growth of 69% compared to FY23, Mahindra Group recorded sales of 60,618 electric vehicles in FY24.
Ola Electric: Leading in the two-wheeler segment, Ola Electric sold 329,237 units in FY 2024, reflecting a remarkable growth of 115.48% compared to FY23.
TVS Motor: TVS Motor also saw excellent growth in FY24 with sales of 182,969 units, marking a phenomenal growth of 122.84% compared to the previous fiscal year.
What’s in it for Investors?
The electric vehicle market in India is growing rapidly, creating several opportunities for investors:
Investing in companies manufacturing electric vehicles: There is a possibility of good returns in the future by investing in companies manufacturing electric vehicles as the EV sector is growing rapidly in India. Listed EV companies on the stock exchange include Tata Motors, Mahindra & Mahindra, Atul Auto, Bajaj Auto, and TVS Motor, among others.
Investing in charging infrastructure companies: Investing in companies installing charging stations can also yield good profits. Companies like Servotech Power Systems, ABB India, and recently listed Exicom Tele-Systems are playing a significant role in this regard.
Investing in battery manufacturing companies: As electric vehicles require batteries, investing in companies manufacturing batteries can be profitable. Companies in India manufacturing batteries for EVs include Exide Industries and Amara Raja Batteries, among others.
What’s Next?
According to Mint, a recently released Counterpoint report suggests an estimated 66% growth in electric vehicle sales in India this year, aided by government subsidies and improved charging infrastructure.
Moreover, it is expected that by 2030, electric vehicles will hold approximately a one-third share of the Indian passenger vehicle market. This figure indicates a long-term growth trajectory for electric vehicles in India’s vehicle industry.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
