Electric vehicle (EV) sales saw a robust 19 per cent growth in H1FY25, rising to 8,36,621 units from 7,02,013 units in H1FY24. However, on a monthly basis, the increase was modest, with a 1.22 per cent rise from August’s 1,46,745 units.
EV sales also saw a 24.65 per cent annual growth in September, rising to 1,48,539 units compared to 1,19,163 units in the same month last year.
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Despite the continued upward trend in electric mobility, September’s sales were the third highest this calendar year, following March’s peak of 2,03,506 units and July 2024’s 1,69,746 units, according to Vahan data from the Ministry of Road Transport and Highways.
The modest rise in September EV sales is still seen as a positive sign by sector experts, as consumers typically avoid purchasing vehicles, homes, or property during the Shradh/Pitra Paksha month, a period considered inauspicious in Hindu tradition to buy high-value items. The slight uptick is attributed to high discounts and offers announced by automotive manufacturers.
“People usually refrain from purchases during Pitra Paksha and prefer to make buying decisions during the festive season in October and November. However, this time, it seems the discounts and offers from manufacturers and dealers helped push sales, which is rare during this period,” said Preetesh Singh, specialist in CASE and alternative powertrains at NRI Consulting & Solutions.
The increase is also attributed to the low base in August, which saw a decline of nearly 13 per cent compared to the 1,69,746 units recorded in July this year.
“The rise isn’t significant, and the base was also low,” Singh said.
Industry executives predict a significant sales boost in October as the festive season kicks off on October 3. They expect a 10-15 per cent increase in sales during the month. Launches by EV players will also boost customer confidence in October and the coming months.
“We have launched a few new products. The festive season and government incentives will give respite to the sector,” said Ayush Lohia, CEO, Lohia Auto.
The top five players collectively sold 83,076 vehicles in August: Ola Electric led with 23,965, followed by Bajaj Auto with 23,529, TVS Motor with 17,923, Ather Energy with 12,579, and Mahindra Last Mile Mobility with 5,080 vehicles. Overall, vehicle sales surpassed the 1.23 million mark in the first eight months of 2024.
This year, sales declined following the end of the FAME subsidy on March 31 and the introduction of the Electric Mobility Promotion Scheme (EMPS) 2024, which further halved the subsidy, resulting in the steepest decline of the year.
To give another push to the sector, on September 11, the Union Cabinet approved two major schemes with a total outlay of Rs 14,335 crore to promote the use of electric vehicles (EVs), including buses, ambulances, and trucks. The two schemes are PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) with an outlay of Rs 10,900 crore over two years, and PM-eBus Sewa-Payment Security Mechanism (PSM) with a budget of Rs 3,435 crore.
The introduction of the scheme is expected to help drive EV sales in the coming months. The PM E-DRIVE scheme was rolled out on October 1.
First Published: Oct 01 2024 | 6:49 PM IST
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