New Delhi, India – April 4, 2024 – India’s electric vehicle (EV) market is experiencing tremendous growth, gaining global attention. Recent figures reveal a huge surge in EV sales, particularly among younger buyers. A unique blend of factors is propelling this unexpected boom of electric vehicles in India: domestic manufacturing of EVs, rising fuel costs, and a growing environmental consciousness among young Indian consumers.
Rise in the EV sales
A recent report by the Society of Indian Automobile Manufacturers (SIAM) indicates a staggering 42% year-on-year growth in electric vehicle sales in India in 2024 with a record-breaking 1.67 million units sold across all segments – electric two-wheelers, three-wheelers, and passenger vehicles.
Furthermore, March 2024 saw the highest monthly sales ever recorded in India, with over 208,000 electric vehicles sold. This signifies a significant milestone since the monthly sales crossed the 200,000 mark for the first time in India. These figures indicate the exponential growth of India’s electric vehicle market, indicating a promising future for EV industry in India.
Youth drives the change
A study by the Society of Indian Automobile Manufacturers (SIAM) in collaboration with the Automotive Component Manufacturers Association (ACMA) revealed that over 60% of electric two-wheeler buyers in India fall under the 25-35 age gap. This led to a shocking 78% growth in electric two-wheeler sales in March 2024 with 139,000 units in sales.
Domestic Manufacturing
India boasts a robust development in the domestic manufacturing of EVs, unlike some countries that heavily rely on imported electric vehicles. Electric vehicle start-ups like Ather Energy and Ola Electric are leading the charge with affordable and stylish electric scooters designed for Indian roads and driving conditions. These Indian startups understand the Indian consumer needs and offer competitive pricing, making EVs more affordable for budget-conscious buyers.
“There’s a sense of national pride attached to owning an Indian-made EV,” says Dr. Anika Singh, a transportation analyst at the Indian Institute of Technology Delhi. “These companies are not just assembling vehicles; they’re actively involved in battery research and development, which fosters trust and confidence among consumers.”
Fueling the Shift
India imports oil for over 16 trillion Indian rupees a year. But in recent months, this sector is facing huge issues due to rising fuel prices. This has made electric vehicles a great economically viable option for many Indian consumers considering their lower running costs. The cost savings on electricity compared to petrol and diesel are substantial. Also, EVs require negligible maintenance which further adds to the financial appeal.
“The recent petrol price hikes have tipped the scales for me,” says Mohan Sharma, a young professional who recently purchased an electric scooter. “The upfront cost of the EV was slightly higher, but the long-term savings on fuel and maintenance make it a worthwhile investment.”
Environmental Concerns Drive Youthful Demand
Post the Covid scenario, Indian millennials and Gen Zs are demonstrating a growing concern for the environment. Climate change is identified as a severe issue by generation, and they are actively seeking ways to reduce their carbon footprint and enhance the climate index in India. With their zero tailpipe emissions, EVs are seen as an alternative mode of transportation that aligns perfectly with the values of this environmentally conscious demographic.
“Sustainability is a major concern for my generation,” says Smita Rao, a DU college student. ” Knowing that I’m not contributing to air pollution makes choosing an electric scooter an easy decision for me.”
Looking Ahead
The rapid EV adoption is a unique opportunity for India to mark its eco-friendly presence on the Global map. While offering cleaner air and a reduced carbon footprint, EV adoption promotes domestic manufacturing and creates new job opportunities in the EV sector. With an ever-growing domestic EV industry, rising fuel costs, and interest of young minds towards EVs, India’s EV revolution shows no signs of slowing down.
