India's electric vehicle (EV) market witnessed remarkable growth in 2024, with sales increasing by 27% to over two million units, according to a BloombergNEF report. This expansion is largely driven by government incentives, the development of charging infrastructure, and a growing consumer shift towards sustainable transportation.

The passenger vehicle segment saw EV adoption rise to 2.6% of total car sales. Tata Motors maintained its leadership position, while MG Motor significantly increased its market share to 25% in 2024, up from 13% the previous year.

In the two-wheeler category, traditional manufacturers such as TVS Motor, Bajaj Auto, and Hero MotoCorp expanded their combined market share from 29% in 2023 to 40% in 2024. Notably, Bajaj Auto's EV sales grew 2.7 times, positioning it as the third-largest EV seller, surpassing Ather Energy.

The commercial vehicle sector also experienced substantial growth, with sales of electric trucks and vans more than doubling to over 6,220 units. This increase is primarily driven by logistics and delivery service providers adopting electric vehicles to reduce operating costs and meet decarbonization goals.

Investment in the EV sector remained strong, with companies securing $1 billion in funding from venture capital, private equity, and commercial banks in 2024. Of this, EV manufacturers raised approximately $671 million. Ola Electric made history by becoming India's first pure-play EV company to go public, while Hyundai India's initial public offering was the largest in the country's history.

Regionally, Maharashtra and Karnataka led in passenger EV and two-wheeler sales in 2024. Delhi surpassed Maharashtra to possess the largest fleet of electric buses, with both regions collectively accounting for 49% of India's e-bus fleet, which totals 10,730 vehicles.

Policy initiatives have played a crucial role in this growth. In September 2024, the central government introduced the PM E-Drive Scheme, marking the first instance of upfront subsidies for electric trucks. The scheme also focuses on promoting municipal e-bus purchases and operations by introducing a payment security mechanism.

As competition intensifies, industry stakeholders are expected to prioritize technological advancements, cost efficiency, and infrastructure expansion to sustain the momentum in India's evolving EV landscape.