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.
“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.”
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