India’s electric passenger vehicle (PV) segment, which includes both cars and SUVs, is poised to close 2024 on a high note, nearing the 100,000-unit sales milestone for the calendar year. This growth comes despite experiencing a lull for a few months during the year.

As of December 23, the electric PV segment has recorded approximately 95,400 registrations this calendar year, with just a week remaining. In comparison, total registrations for electric cars and SUVs in 2023 stood at 82,238 units, according to Vahan data.

Festival demad

After a period of subdued sales, the electric PV segment gained traction during the festive season, coinciding with the launch of JSW MG Motor’s new electric car, the MG Windsor. This model has generated significant excitement and secured a considerable number of bookings. Puneet Gupta, Director at S&P Global Mobility, stated, “Yes, MG Windsor created a buzz in the market and its innovative marketing strategy BAAS (Battery as a Service) made the car very affordable.”

The penetration of battery-powered vehicles in the PV sector remains around 2 per cent this year. While hybrids are emerging as an alternative for consumers, the EV segment continues to depend heavily on charging infrastructure availability. In contrast, hybrid vehicles have gained healthy acceptance due to their independence from such infrastructure.

Gupta expressed that the introduction of hybrids by Maruti Suzuki and Toyota in 2024 raises questions about whether India’s future lies with hybrids or fully electric vehicles. He stated that globally there has been some pushback against EV sales in certain regions, However, he believes that EV adoption in India is inevitable and anticipates that 2025 will be a turning point for electric and other new-age fuels.

New launches

In the coming months, the electric PV segment is expected to witness new launches from companies such as Maruti Suzuki, Toyota, Hyundai and Kia while Mahindra has already unveiled its new full electric models.

Over the next two to three years, both the EV and hybrid segments are expected to gradually increase their market penetration. The introduction of affordable EV models in the next few years is anticipated to enhance consumer options and drive adoption further. Additionally, improvements in charging infrastructure and reductions in vehicle prices due to falling battery costs are expected to accelerate this trend, said Rohan Kanwar Gupta, Vice-President & Sector Head at ICRA Ltd.

In 2024, Tata Motors retained its leading position with over 60 per cent market share, followed by JSW MG Motor at around 21 per cent, and Mahindra & Mahindra at about 7 per cent. In the luxury segment, BMW and Mercedes-Benz dominated the electric vehicle market.

Gupta said that India’s transition to an EV-dominated car market will be gradual, influenced by diverse consumer needs and varying price sensitivities. This shift is likely to unfold through a phased adoption of alternative fuels such as CNG, bio-CNG, ethanol, hybrids, and range-extended EVs (REEVs), before fully embracing electric vehicles.