The Indian EV industry witnessed a dip in funding in 2024, dropping to $586 million from $808 million in 2023. However, the number of deals closed remained steady at 44. Subsidies also saw changes with the introduction of the PM E-Drive Scheme, which gradually replaces the FAME-II program. Under this scheme, subsidies for electric two-wheelers are now based on battery power, with a fixed rate of ?5,000 per kilowatt-hour (kWh) in the first year, capped at Rs 10,000. There was a dip in overall sales growth as well in terms of percentage. EV sales in 2024 grew to over 1.9 million units—a 24.5% increase from 1.5 million units in 2023. However, this growth slowed compared to the 50% increase between 2022 and 2023, according to government data from the Vahan portal. However, the industry seems quite positive for the year ahead. Here’s what the industry players told ET.
Nitin Kapoor, Managing Director, SAERA Electric Auto Ltd
“The coming year will be pivotal, driven by advancements in battery technology, expanding charging infrastructure, and global policy support. We expect a surge in demand for electric three-wheelers and cargo vehicles, alongside deeper collaboration within the EV ecosystem to foster innovation and accessibility.”
“EV growth brings unprecedented cybersecurity challenges, with vulnerabilities in chargers, autonomous systems, and connected technologies. The adoption of standards like UNECE WP.29 and proactive defenses will strengthen security. In India, government drafts mandating Cyber Security and Management Systems (CSMS) for OEMs mark a vital step forward.”
“Green finance in 2024 achieved double-digit growth, especially in tier-2 and tier-3 cities. With a projected CAGR of 30% for 2025, digital financing platforms and battery analytics will enhance affordability and accessibility. AMU plans to expand into five new states with over 10 branches.”
“EV adoption in logistics will accelerate in 2025, driven by advancements in battery technology and sustainability demands. Electric vehicles will streamline last-mile delivery, reduce operational costs, and optimize routes using AI, paving the way for a greener supply chain.”
“In July 2024, EV sales surged by 53%, hitting 179,000 units and surpassing the one-million-unit milestone. Advancements in Li-ion and solid-state batteries are crucial for overcoming challenges like range anxiety. Strong government policies and innovation will be vital for continued growth.”
“Segments like Vehicle-as-a-Service (VaaS) and Battery-as-a-Service (BaaS) made significant progress in 2024. Emerging markets for EV resale and battery recycling will gain traction in 2025. Traditional investors are showing increased interest, focusing on proven models with larger investments.”
“India’s electric two-wheeler market has grown exponentially, with sales rising from 45,000 units in FY 2021 to nearly 950,000 units in FY 2024. By 2025, the market is expected to redefine mobility, driven by consumer demand and rapid advancements in charging infrastructure.”
On Logistics and Sustainability, he said, “Electric two-wheelers are playing a central role in last-mile delivery, with nearly 30% of new vehicles in 2024 being electric. Quick commerce is expected to grow 15-fold by 2025, further boosting EV adoption. Companies like Amazon and Flipkart are transitioning fleets to EVs, leveraging policy support and infrastructure advancements to meet sustainability goals.”
“India’s green energy and electric vehicle (EV) sectors have made substantial progress. The growth in renewable energy, particularly solar and wind, alongside the rapid acceleration in EV adoption, signals a major shift towards a more sustainable future for the country. In the EV sector, the expansion of charging networks and improvements in battery technology have created a more enabling environment for electric mobility. Additionally, solar energy has played a vital role in powering EVs and enhancing grid stability, demonstrating the seamless integration of these sectors. Looking ahead to 2025, we anticipate continued growth and momentum. ”
“2024 has been a pivotal milestone in India’s EV evolution, setting the stage for transformative growth. Between April and November alone, India achieved an impressive 13.06 lakh EV registrations reflecting a 25.64% growth compared to the previous year. Looking ahead to 2025, resolving the inverted GST structure in the two-wheeler segment is crucial. While the lower 5% GST on EVs encourages adoption, the 18-28% GST on raw materials creates high working capital demands, increasing costs unnecessarily. Addressing this taxation disparity and refining policies will create a stronger foundation for the sector’s efficiency and competitiveness, providing a much-needed boost for sustainable growth.”
“2024 was a fabulous year for Droom as it was our second year with our new strategy that we pivoted to in Oct 2022 when we decided to get out of value segment (cars under 10L) and decided to focus on mid (cars between 10L to 30L), premium (cars between 30L to 50L) and luxury cars (cars above 50L). In 2025, we will be announcing 2-3 more new initiatives that can be stable source of revenue and profits in coming years.”
On EV sector:”EVs in India, across various categories – especially within the 2Ws and 3Ws, have become increasingly affordable for consumers due to government support. This support includes a reduced GST of 5% compared to 28% or more for internal combustion engine (ICE) vehicles, lower RTO charges, and subsidies such as the PM-EDRIVE scheme, all driving up their adoption in the last 2 to 3 years.
The trend of rising EV adoption is expected to continue into 2025, especially as OEMs expand their product offerings in the four-wheeler segment. This expansion is anticipated to lead to greater market penetration for EVs in this category. Furthermore, with the decline in battery costs, EVs are likely to become more competitively priced across all categories on an ex-factory basis, facilitating deeper market penetration in the coming years.”
On Renewable Energy sector: “In the RE segment, beyond the ongoing focus on meeting the unspoken target of meeting 50 GW in auctions, the PM Surya Ghar Yojana is expected to continue its push into the distributed rooftop solar segment, with potentially higher deployments than in 2024. One of the most significant drivers for RE growth in the country in the coming years is likely to be the declining cost of battery storage which was the poster of performance with ever-lower bids during 2024. This will make hybrid and firm RE capacities more attractive and competitive with firmer capacities like coal in most technical and economic aspects in the coming years and decades.”
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