While Uttar Pradesh has the highest EV sales, Delhi has the highest EV penetration (relative to the total number of registered vehicles) at 7.72%
India was once considered a young market but has now shown huge potential and has become a major automotive platform in the world. India has also seen a significant increase in electric vehicle penetration amid rising emissions concerns and a push for cleaner vehicles. Many factors influence electric vehicle sales in India.
Chief among them are government assistance in the form of FAME scheme, PLI-Auto scheme and PM E-Drive. Other decisive factors include operating terrain, charging infrastructure and pricing strategy. New figures from MoRTH’s Vahan Data show a state-by-state breakdown of electric vehicle sales. Let’s take a look.
Distribution of electric vehicle sales by state
If we break down electric vehicle sales on a state-by-state basis, Uttar Pradesh tops the list with 6,65,247 electric vehicles registered between April 1, 2019, and March 31, 2024. Uttar Pradesh has an electric vehicle penetration of 4.34% compared to 1,53,17,699 units registered. In terms of EV sales, UP has the highest sales.
Secondly, we have sold 4,39,358 electric vehicles in Maharashtra in the last 5 years. Maharashtra’s electric vehicle penetration is 3.97% as compared to 1,10,55,082 registered vehicles. While the registrations in Karnataka are only 73,15,250 units, 3,50,810 of them are electric vehicles. High road tax in Karnataka could also be a reason for this trend.
The total number of vehicle registrations in Tamil Nadu exceeds that of Karnataka at 84,76,042, but only 2,28,850 of them are electric vehicles, and the penetration rate of electric vehicles is only 2.7%. 2,33,503 electric vehicles were sold in Rajasthan, with an electric vehicle penetration rate of 3.60%; Bihar registered 2,14,921 electric vehicles, with an electric vehicle penetration rate of 3.73%. Notably, Delhi registered 27,99,571 vehicles, of which 2,16,084 were electric vehicles, with an electric vehicle penetration of 7.72%, the highest in India.
Gujarat, Madhya Pradesh and Kerala ranked eighth, ninth and tenth in electric vehicle sales with 1,91,185, 1,44,782 and 1,51,029 electric vehicle registrations respectively. Some states and union territories have the lowest EV penetration, such as Lakshadweep (0.69%), Ladakh (0.45%), Arunachal Pradesh (0.03%), Nagaland (0.02%) and Sikkim (0%).
Popularity of electric vehicles in India
Over the past five years, we have witnessed some of the biggest transformations in the Indian automotive industry and also witnessed challenges including an unknown global pandemic. In 2020, the market shifted from BS4 emission standards to the more stringent BS6 P1 emission standards. Moving to BS6 P2 in 2023 and becoming the emission standard for all vehicles currently sold in India.
Between April 1, 2019 and March 31, 2024, 107.5 million vehicles (10,75,31,040 vehicles to be precise) were sold in the Indian market. 36,39,617 of these vehicles registered in India have battery-powered electric powertrains. The electric vehicle penetration rate in the Indian market is 3.38%. Some would say this is a healthy figure.
The Indian government has taken several initiatives to boost electric vehicle sales in India. The FAME scheme (Faster Adoption and Manufacturing of Electric Vehicles in India) is the most high-profile scheme so far and has been incentivizing electric 2W cars, electric 3W cars, electric 4W cars and even electric buses and public charging infrastructure since 2019 facilities with a budget of Rs 11,500 crore.
The PLI Auto scheme (Production Linked Incentive Scheme for Automobile and Auto Component Industry) was first launched in 2021 with an aim to strengthen electric vehicle manufacturing with a budget of Rs 25,938 crore. We also have the recently launched PM E-Drive scheme in September 2024 with a budget of Rs 10,900 crore to enhance the electric vehicle segment and even upgrade vehicle testing facilities.
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