New Delhi, Apr 9 (KNN) India's electric vehicle (EV) sales projected at 66 per cent in the fiscal year 2024, according to a new report by Counterpoint Research.

This stellar growth saw EVs capture 4 per cent of India's total passenger vehicle market, up from 2 per cent in 2023.

The report highlights how India's EV market is rapidly gaining traction, driven by rising consumer demand in urban areas, government support policies, improving charging infrastructure, and growing environmental consciousness.

While Tata Motors dominated with over two-thirds share in 2023, it faced intensifying competition from Mahindra & Mahindra and newcomer BYD.

Mahindra was the fastest-growing EV brand last year, up 2476 per cent on the back of its XUV400 electric SUV.

Chinese automaker BYD also saw exponential 1500 per cent + growth to crack the top 5, despite having just two models - the e6 MPV and Atto 3 SUV.

Looking further ahead, Counterpoint Research forecasts EVs could account for nearly one-third of India's passenger vehicle sales by 2030 as the market continues rapid expansion.

New players like Maruti Suzuki, VinFast, and potentially Tesla are expected to intensify competition in the coming years.

Domestic battery manufacturing by firms like Ola, Reliance, and ACC Energy Storage is expected to drive down costs.

Meanwhile, supportive government policies like reducing import duties on EVs under USD 35,000 to 15 per cent are catalysing investments across the EV supply chain.

"India's EV landscape is on the cusp of transformational growth," said Liz Lee, Associate Director at Counterpoint Research. "The rise of local battery production, combined with initiatives like Make in India and PLI schemes, will boost EV affordability and adoption. This opens doors for new players like Tesla and signals India's readiness to become a major global EV hub."

(KNN Bureau)