Electric vehicle sales rev up 17%, but fall short of 2 mn milestone

This growth comes despite a challenging first quarter following the expiration of FAME subsidies, among other challenges

Despite several challenges, electric vehicle (EV) sales surged 17 per cent in 2024-25, with two-wheelers, three-wheelers and passenger vehicles leading the charge.

 

During the last financial year, India registered 1.96 million units of EV sales against 1.68 million units a year ago, according to data from the Vahan portal. However, it missed the 2-million sales mark.

 

This includes registration of 1.14 million units of e2W (electric two wheelers), up 21.1 per cent year-on-year (Y-o-Y) from 948,561 units, and 699,062 units of e3W (electric three wheelers), which saw a 10.4 per cent surge. Electric passenger vehicles, including electric cars and SUVs, also recorded steady growth, with total registrations touching 106,000 units in FY25 against 91,000 units in FY24.

 

The growth in these segments is attributed to the entry of new brands and expansion by established players.

 

This growth comes despite a challenging first quarter following the expiration of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) subsidies, among other challenges.

 

Union Minister for Heavy Industries (MHI) & Steel, H D Kumaraswamy, attributed it to the mass EV sales to flagship schemes like FAME, EMPS, and PM E-DRIVE. “This milestone reaffirms our commitment to building a cleaner, greener, and self-reliant India,” the minister said.

 

In the case of e2W sales, after a temporary dip post-subsidy withdrawal, it made a strong comeback.

 

Accounting for 58 per cent of all EV registrations in FY25, the segment’s resilience was fuelled by heightened consumer sentiment and a wave of new high-performance models at competitive price points. 

 

Several players entered the segment by launching products at affordable prices. Discounting by some electric two-wheeler players, such as Ola Electric and Ather Energy, also helped. Expansion by two-wheeler manufacturers to Tier-II and Tier-III cities further boosted sales.

 

Ola Electric dominated the electric two-wheeler market with 30 per cent share, followed by TVS Motor Company, which cornered a share of 12 per cent. Bajaj Auto, with its Chetak offering, cornered a market share of 11.7 per cent whereas Hero MotoCorp-backed Ather Energy bagged 6.6 per cent share. In the previous financial year, Ola Electric sold 344,005 units of e2Ws against 329,947 units a year ago. Its e2W registration last March was 23,430 units.  The number is in sync with the data available on the Vahan portal after the company, on March 22, said that it would clear the February sales backlog by the end of March.

 

In February, Ola Electric said  it had sold 25,000 units and cornered  a market share of over 28 per cent in the EV two-wheeler market.

 

This figure came under scrutiny by the Ministry of Heavy Industries and the Ministry of Road Transport and Highways after a mismatch was found in its reported sales figures.

 

Ola Electric, in an official statement on Tuesday, said it nearly cleared the February backlog and expects to complete the remaining February–March registrations in April 2025.

 

The company’s market share slipped to 39 per cent last July and further down to 33 per cent in August.

 

Shares of Ola Electric Mobility Ltd fell below ₹50 apiece, over 7 per cent on March 17 and 4.4 per cent on March 26, after a high security number plate manufacturer and vehicle registration agency sued the company for defaulting on payments.

 

The firm said Rosmerta Group filed a memo for withdrawal of petitions filed before the National Company Law Tribunal (NCLT), Bengaluru. This came as it amicably settled all outstanding dues between its wholly-owned subsidiary, Ola Electric Technologies Pvt Ltd, and the Rosmerta Group.

 

Meanwhile, total automobile sales in 2024-25 were 24.6 million units compared to 22.3 million in 2023-24.