Will new incentives smoothen the EV ride?

There are, however, some bright spots. Two-wheeler registrations rose 9% during the same period, with the electric segment surging 27%. The continuation of subsidies under the PM E-DRIVE scheme, which has allocated ₹2,679 crore for electric two-wheeler purchases, bodes well for further growth in this space. However, the lack of subsidies for electric cars leaves that segment grappling with slower growth.

Read this | India changes gears to a new EV policy focus

In the first half of 2024-25, the top 15 districts accounted for 21% of total four-wheeler registrations. Of these, 13 saw a decline in non-EV registrations, while seven districts also reported a drop in EV registrations, including Bengaluru, the top district for both four-wheeler and two-wheeler EVs. Yet, electric four-wheelers are still outperforming their non-electric counterparts. In these 15 districts, with the exception of Indore, EV registrations either grew faster or declined less than non-EV registrations.

Below 10%

Globally, EV sales have faced setbacks. In Europe, battery electric vehicle (BEV) registrations dropped by 43% in August compared to the same period last year, according to the European Automobile Manufacturers Association, with only hybrid vehicles seeing a modest 6% growth. The decline was most pronounced in the two largest markets, Germany and France. 

Shares of global automakers have plummeted amid fears of fierce competition from Chinese EV makers, with companies like Volkswagen and Stellantis issuing profit warnings. In China, a key car market, sluggish growth has impacted overall sales.

More here | Slashed subsidies to cause e-two-wheeler sales to ebb

In India, while EV sales have defied the global trend, their market share has not grown as quickly as anticipated. EVs currently account for about 7% of monthly two-wheeler registrations and 9.5% of four-wheeler registrations. The government, however, is aiming for EVs to make up 30% of total sales by 2030.

Contrasting rides

Ola Electric leads the two-wheeler EV market, while Tata Motors dominates the four-wheeler EV space. Despite differing market trajectories over the last two-and-a-half years, both companies now hold a similar market share—around 30%. 

In early 2022, Tata Motors, as an early entrant, commanded over 90% of the electric car market, but its share has steadily declined as more manufacturers have entered the fray, with the pace of decline picking up in 2024. Tata still held the top spot for the first nine months of 2024, followed by Toyota, Mahindra, and MG.

Ola Electric, on the other hand, began in the two-wheeler EV segment with a modest single-digit market share but saw rapid growth, peaking at 52% in April. However, competition from Bajaj Auto, Ather, and TVS Motor has led to a decline, with Ola's market share now hovering around 30%, and its stock down about 32% from its highs.

Charging-up infrastructure

The new central policy has an outlay of ₹2,000 crore to boost the public charging infrastructure, a key driver for EV adoption. Unlike EV sales, this is highly concentrated even today. According to the government’s Bureau of Energy Efficiency, there are around 25,000 such charging stations in India. However, 35% of them are in just six locations—Delhi, Bengaluru, Pune, Mumbai, Thane and Ernakulam.

Thus, there can sometimes be a stark disparity between EV sales and the availability of EV chargers in a location. 

The Odisha government, for instance, has been giving generous subsidies for adoption of EVs, which has contributed to 80,000 two-wheeler EVs and 3,000 four-wheeler EVs being registered in the state in the past two years. However, there are only around 488 EV charging points in the entire state. These are some bumps that need to smoothen for EVs to have bigger drives.

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