Electric vehicle sales
in India are projected to increase by 66% this year, building on a nearly doubled growth seen in
2023
. This surge is attributed to
state subsidies
and the development of supporting infrastructure in the country, as per research firm
Counterpoint
.
The significance of this growth lies in its contrast with slowing EV sales in other major markets like the United States and China.
Counterpoint's report also indicates that by 2030, EVs are poised to capture almost a third of India's personal vehicle market.
In the context of India's evolving EV landscape,
Tata Motors
remains a dominant force. Despite electric models constituting just 2% of total car sales in 2023, the government aims to push this figure to 30% by 2030. Recently, the Indian government's decision to reduce EV import taxes on specific models, contingent upon carmakers committing to significant investment and local manufacturing within three years, has been viewed as a favorable development for foreign automakers like Tesla.
In related developments, Reuters reported Tesla's initiation of right-hand drive car production at its German plant for export to India later this year. Meanwhile, Vietnamese automaker VinFast has announced plans to invest $2 billion in India, with construction already underway for a factory in Tamil Nadu.
In terms of market share, Tata Motors held a commanding position in India's
EV market
last year, though it faced competition from Mahindra & Mahindra and Chinese automaker BYD. Mahindra & Mahindra witnessed a remarkable 2,500% growth in EV sales with its all-electric SUV XUV400, while BYD also experienced substantial growth, reporting over 1,500% increase in EV sales with its e6 MPV and Atto 3 SUV models.
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