According to Reuters, data from the research company Counterpoint indicates that India's electric vehicle sales are expected to grow by 66% year-on-year this year, thanks to government subsidies stimulating demand and an increase in supporting infrastructure.
In 2023, India's electric vehicle sales nearly doubled, accounting for 2% of the total car sales in India. Counterpoint's forecast suggests that by 2030, electric vehicles are expected to make up nearly one-third of India's personal car market, with the Indian government aiming for electric vehicle sales to constitute 30% of total sales by 2030.
Currently, India's electric vehicle market is relatively small but continuously expanding. Last month, the Indian government reduced import duties on certain electric vehicle models, provided that automakers commit to investing at least $500 million in India within three years and commence production. This move is seen as a victory for foreign automakers like Tesla.
On April 4th, Reuters reported that Tesla has started producing right-hand-drive vehicles at its German factory and plans to export them to India later this year. Vietnamese automaker VinFast also plans to invest $2 billion in India and began construction of a factory in Tamil Nadu, southern India, in February this year.
According to Counterpoint's report, Tata Motors held a 70% market share in India's electric vehicle market last year, while MG held 14%, Mahindra & Mahindra held 7%, and Citroen and BYD each held a 2% share.
Mahindra & Mahindra saw a nearly 25-fold increase in electric vehicle sales last year, driven primarily by the XUV400 pure electric SUV. BYD's electric vehicle sales in India grew by more than 15 times with the e6 MPV and Atto 3 SUV models, while MG experienced a 186% surge in electric vehicle sales.
