August 2024 wasn’t a great month for electric car sales in India because of the massive drops in MoM sales figures. Compared to the upward trajectory growth in the first half of 2024, electric car sales in August have slowed down. The end of FAME II subsidies and heavy rains across several Indian states can be the reasons for this decline in India.
In August 2024, electric car sales in India were 677 units less compared to the same month last year. This marks a 10% YoY decrease. Meanwhile, MoM sales too saw a significant 19% drop from 7,898 units sold in July 2024. Tata Nexon EV and MG ZS EV India were notable performers, though they both faced declines. Tata Motors sold 4,085 units, and MG Motor India sold a total of 1,353 units.
Let’s break down how the major players did in August 2024:
| Company | August 2024 | July 2024 | Change |
|---|---|---|---|
| Tata Motors | 4,085 | 5,026 | -18% |
| MG Motors | 1,353 | 1,596 | -15.2% |
| Mahindra | 317 | 508 | -37.6% |
| BYD | 209 | 354 | -41% |
| Citroen | 158 | 159 | 0.63% |
| BMW | 63 | 77 | -18.2% |
| Hyundai Motors | 39 | 62 | -37.1% |
| Kia Motors | 18 | 17 | 0.30% |
Electric Car Sales August 2024 – Year-on-Year (YoY) Change
In August 2024, electric car sales fell to 6,335 units, showing a 19% decline from 7,898 units in July. Top performers for the month include Mahindra, which saw a 4.5% increase in sales to 580 units, and Hyundai with a 5% increase to 310 units. On the other hand, leaders in electric car sales Tata Motors and MG Motors showed a significant decline this month, with sales dropping by 14% and 10% respectively.
Tata Motors with a 14% decline
Tata Motors sold 4,085 electric cars in August 2024, but that’s down from 4,777 units compared to August 2023, showing a 14% drop. Numbers are lower even in the MoM comparison compared to the 5,030 units they sold in July 2024. The Nexon EV and Tigor EV are still their best-sellers with 2100 units and 1500 units in August 2024.
MG Motor India showed a 10% decline
MG Motor India holds about 21% of the electric car market, but they also experienced a slowdown in sales this month. In August 2024, they sold 1,353 cars, which is a little lower than the 1,596 units sold in July 2024. The MG ZS EV is their main offering, but just like Tata EV cars, terrible weather and the end of subsidies could have impacted their sales.
Mahindra and Hyundai’s slow growth
Similar to Tata and MG, Mahindra sales this month went down a bit. They sold 317 electric cars in August 2024, a 37% decrease from 508 units in July 2024 with a 5% market share. Their sales figures are mainly contributed by the popular XUV400 electric car.
Meanwhile, Hyundai also saw a slight decrease in the sales figures, selling 39 electric cars in August compared to 62 units in July 2024. However, it is still way behind Tata or MG. Their Kona Electric and EV6 haven’t been as popular in India as they hoped.
BYD and Citroen showed Mixed Results
BYD, a relatively new player in the Indian EV market showed positive growth in July 2024, but in August their sales went down by 41%. The company sold 209 units in August 2024, compared to 354 units in July. Meanwhile, Citroen didn’t show major change with similar sales figures in August and July 2024. It sold 1 less electric car in August 2024 compared to 159 units in July 2024.
Why Are Sales Dropping?
Several factors are behind the drop in electric car sales this month. Heavy rains and floods across several states of India have lowered the sales figures in India in August 2024. Plus, the high upfront cost of electric cars is turning some buyers away. It is due to the end of government subsidies. The FAME II scheme used to make electric cars more affordable, but now that the subsidies are stopped, people are waiting for the FAME III introduction.
However, the upcoming festive season could change the growth curve significantly. The launch of EV models like the Tata Curvv EV and MG Windsor EV have got buyers excited again. Plus, automakers are likely to offer discounts during the festive months, which usually boosts car sales in India.
While August was a rough month for the electric car market, there’s hope that things will pick up in the final months of 2024.