India's Electric Vehicle Sales Witness Decline In June 2024

Updated: Thursday, July 4, 2024, 16:58 [IST]

Electric vehicle (EV) sales in India have seen a decline, with brands like Tata, Mahindra, MG Motor, Mercedes, BMW, and Audi selling 5,562 units in June 2024. This marks a decrease from 6,960 units sold in June 2023. Despite this monthly drop, the first half of 2024 showed a 21 percent year-on-year increase in EV passenger vehicle sales to 40,663 units.

The total retail sales of two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles rose by 16% year-on-year to 8,42,217 units in the first half of this year. However, June's figure of 1,08,742 units is the lowest monthly number since July 2023. The combined share of electric two- and three-wheelers remains dominant at 94 percent of total EV sales.

Impact of Subsidy Withdrawal on EV Sales

The withdrawal of the FAME II subsidy scheme on March 31, 2024, has significantly impacted sales in the largest volume segments—electric two- and three-wheelers. Companies raised prices following the subsidy cut. These segments accounted for a combined total of 7,91,402 units sold in H1 2024.

In mid-March 2024, the Electric Mobility Promotion Scheme (EMPS) replaced FAME II. Valid from April to July 2024 with an outlay of Rs 500 crore, EMPS aims to support the purchase of 3,72,000 EVs. This includes subsidies for 3,33,000 two-wheelers and 38,828 three-wheelers (L5 category).

Rank	Manufacturer	May'23	May'22	Growth (%) YoY
1	Tata	5,822	2,501	132.79
2	MG	437	250	74.80
3	Mahindra	363	9	3,933.33
4	Citroen	308	0	-
5	Hyundai	163	27	503.70
6	BYD	138	42	228.57
7	BMW	70	9	677.78
8	Kia	45	0	-
9	Volvo	42	0	-
10	Mercedes	18	5	260

June's EV Sales Breakdown

In June 2024 alone, electric two-wheeler sales stood at 53,151 units while three-wheeler sales were at 49,186 units. Passenger vehicles accounted for just over five percent of total EV sales with their numbers dropping by over sixteen percent month-on-month and twenty percent year-on-year.

Light passenger vehicles saw a significant decline with only 335 units sold in June compared to May's figures. Buses also experienced a drop with just 129 units sold compared to previous months' higher numbers.

Industry's Hope for Government Support

The Indian automotive industry is hopeful that the government will extend EV subsidies to sustain demand and facilitate the transition to electric mobility. On June 11th FADA president Manish Raj Singhania stated: "The automotive industry is eagerly looking forward to the announcement of FAME 3 by the newly formed government."

"We believe that the introduction of new subsidies and incentives under FAME 3 will provide the necessary boost to EV sales and help increase their market share significantly," he added.

Electric buses and heavy and light goods carriers accounted for a minor share with only about half a percent of total EV sales at approximately 5,537 units combined. The overall trend indicates that while there is growth in some areas like passenger vehicles over six months; monthly fluctuations show challenges remain.

The data reveals that despite an overall increase in EV sales during January-June period compared to last year; specific segments are struggling due to policy changes affecting pricing dynamics within India's evolving electric vehicle market landscape.