Statsguru: Record run for electric cars globally, lower pickup in India

Nearly 20 per cent of cars sold globally in 2024 will be electric. Worldwide sales of electric cars will reach 17 million in 2024, according to the Global EV Outlook 2024 report released by the Paris-based International Energy Agency (IEA) last week. Growth, however, has slowed (chart 1).


 

A roll-back of subsidies globally is said to be a factor. Government encouragement has helped adoption in multiple markets. China, Germany, and the US all saw adoption rise from low single-digits in 2018 to as high as 38 per cent in 2023. India has seen more limited success (chart 2).


 

International commentators have pointed out that electric vehicles in India have come through the cheapest vehicles first, unlike developed markets where the adoption first came through expensive cars, including Tesla. Two-wheelers and three-wheelers account for more than 90 per cent of the electric vehicle market in India, according to data collated by the Centre for Monitoring Indian Economy.
 

The value-conscious nature of the Indian consumer is playing a role. The cost of ownership over the lifetime of the vehicle is significantly lower for electric two-wheelers and three-wheelers. 
 

This does not hold for passenger cars, though the gap is expected to become more favourable by 2030 (charts 3,4). 




 

India has also pulled back on subsidies granted under the government’s Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME India) scheme.
 

Electric vehicle adoption will also have implications for India's energy mix. Around 6 per cent of India’s electricity consumption will involve electric vehicles by 2035. Numbers are higher for the US, China and Europe. A similar scenario will play out for oil displacement. 
 

India will save around 300,000 barrels per day, while it will be over ten times that in China and the US (chart 5,6).