EV sales crawl monthwise

Nitin Kumar/Business Standard

Electric vehicle (EV) sales saw a robust growth of 19 per cent in the first half (H1) of 2024-2025, rising to 836,621 units from 702,013 units in H1 of 2023-2024.

However, monthly, the increase was modest, with a 1.22 per cent rise from Augusts 146,745 units.

EV sales also showed a 24.65 per cent annual growth in September, climbing to 148,539 units compared to 119,163 units in the same month last year.

Despite the continued upward trend in electric mobility, Septembers sales ranked as the third highest this calendar year, following Marchs peak of 203,506 units and July 2024s 169,746 units, according to Vahan data from the ministry of road transport and highways.

The modest rise in September EV sales is still regarded as a positive sign by sector experts, as consumers typically avoid purchasing vehicles, homes, or property during the Shradh/Pitru Paksha month, a period considered inauspicious in Hindu tradition for buying high-value items.

The slight uptick is attributed to the high discounts and offers announced by automotive manufacturers.

"People usually refrain from purchases during Pitru Paksha and prefer to make buying decisions during the festival 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, a specialist in CASE and alternative powertrains at NRI Consulting & Solutions.

The increase is attributed to the low base in August, which saw a decline of nearly 13 per cent compared to the 169,746 units recorded in July this year.

"The rise isn't significant, and the base was also low," Singh noted.

Industry executives predict a considerable sales boost in October as the festival season kicks off on October 3. They expect a 10 to 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 festival season and government incentives will provide respite to the sector," said Ayush Lohia, chief executive officer of Zuperia Auto (formerly 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 Company with 17,923, Ather Energy with 12,579, and Mahindra Last Mile Mobility (formerly known as Mahindra Electric 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 Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) subsidy on March 31 and the introduction of the Electric Mobility Promotion Scheme 2024, which further halved the subsidy, resulting in the steepest decline of the year.

To provide another push to the sector, on September 11, the Union Cabinet approved two major schemes with a total outlay of Rs 14,335 crore (Rs 143.35 billion) to promote the use of EVs, including buses, ambulances, and trucks.

The two schemes are the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) with an outlay of Rs 10,900 crore (Rs 109 billion) over two years, and the PM-eBus Sewa-Payment Security Mechanism with a budget of Rs 3,435 crore (Rs 34.35 billion).

The introduction of these schemes is expected to help drive EV sales in the coming months. The PM E-DRIVE scheme was rolled out on October 1.