
Electric vehicle sales charged up this year, and not just because of subsidies

Summary
- Sales of fossil fuel vehicles declined, in comparison with EV sales, fuelled by a robust electric mobility push by the government.
New Delhi: The number of fossil fuel-based vehicles sold for every electric vehicle (EV) in the two-wheeler and light motor vehicle categories has fallen in 2024, compared with last year, a positive indicator for the EV ecosystem in the country.
As per data from the government's Vahan portal, over 16.8 million petrol two-wheelers were sold till date in 2024. In the same period, 1.12 million electric two wheelers were sold, indicating that for every electric unit sold, consumers purchased 15 petrol bikes or scooters.
This marks a sharp decline from 2023's 18.43 petrol two-wheelers sold per electric two-wheeler sale, with 15.85 million petrol bikes and 860,000 EV bikes, as per Vahan data.
In 2022, for every electric two-wheeler sold, consumers purchased 23.70 petrol bikes and scooters, the data showed.
Upon a similar analysis, Mint observed the same trend for four-wheeler sales.
Data for light motor vehicles (LMVs) on the Vahan portal indicated that for every EV sold in 2024 till date, consumers purchased 40.28 petrol and diesel vehicles, much lower than 48.92 such vehicles sold per EV sale last year.
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The growth of the India's EV ecosystem is also illustrated by the massive fall from 105.12 petrol and diesel LMVs sold for every electric LMV in 2022.
Total EV sales for the April-November period also rose year-on-year, with over 1.3 million EVs sold in 2024, compared with about 1 million the year before, as per a ministry of heavy industries statement on 17 December this year.
Government's electric push
The fall in fossil fuel vehicle sales, in comparison with EV sales, comes after a robust electric mobility push with the government trying to generate demand using various schemes such as FAME II and PM E-drive to provide subsidies to consumers and strengthen the overall ecosystem.
For instance, the PM E-drive scheme, the central government's third major EV subsidy scheme, also has an outlay of ₹2,000 crore to set up fast chargers across the country to address range anxiety among potential buyers. The government informed the Lok Sabha that as of 20 December, 25,202 EV charging stations have been installed in the country.
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The previous subsidy scheme FAME 2 also planned to install 10,763 public charging stations for EVs in its outlay. FAME stands for Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles. Its first iteration was launched in 2015, followed by the second in 2019.
"The increase in charging stations and the development of better EV infrastructure have played a significant role in accelerating the adoption of EVs. With more accessible charging options and advanced technology, consumers find it easier and more convenient to switch to EVs," said Akshit Bansal, founder and CEO, Statiq, which provides EV charging infrastructure.
Why buyers choose EV over ICE?
EVs also attract lesser taxes than internal combustion engine (ICE) vehicles, and have negligible servicing costs. While ICE vehicles attract a 28% goods and services tax (GST), the same levy on EVs is 5%.
ICE engines run on fossil fuels, and typically include petrol and diesel vehicles.
EVs have fewer spare parts and consequentially are less of a burden on consumers when it comes servicing costs. These zero-emission vehicles have only one major servicing cost—battery replacement. The battery of an EV makes up for around 40% of the vehicles price. Replacing EV batteries, however, is not a frequent expense for consumers, keeping servicing costs lower than ICE vehicles.
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Bansal of Statiq echoed that subsidy schemes and tax incentives have fuelled buyers to choose EVs, adding that consumers are also making sounder environmental choices in vehicle purchases.
"These incentives, along with growing environmental consciousness and the desire to embrace green mobility, have made EVs more attractive. People are becoming more responsible and proactive in reducing their carbon footprint. Additionally, EVs are cleaner and cheaper to operate compared to petrol vehicles, making them a more economical choice," said Bansal of Statiq.