Daijiworld Media Network - New Delhi
New Delhi, May 19: India has once again secured its position as the world’s top market for electric three-wheelers (3Ws), surpassing China for the second consecutive year, according to the latest Global EV Outlook 2025 report by the International Energy Agency (IEA). With sales surging by nearly 20 per cent, India recorded close to 700,000 electric 3W units sold in 2024.
The report highlights the overwhelming dominance of India and China in the three-wheeler segment, jointly contributing to over 90 per cent of global electric and conventional 3W sales. However, while China's electrification rate for three-wheelers has remained stagnant at under 15 per cent over the past three years, India has witnessed consistent growth.
Driving this momentum is the Indian government's continued policy support, particularly through the new PM E-DRIVE initiative. Launched as a successor to previous schemes like FAME-II and the Electric Mobility Promotion Scheme, PM E-DRIVE backed the deployment of more than 300,000 electric three-wheelers for commercial use in 2024 alone. The policy is slated to continue until March 2026, with a target of supporting 2.5 million electric two-wheelers (2Ws).
India’s electric two-wheeler market has also seen notable growth and diversification. The number of original equipment manufacturers (OEMs) rose to 220 in 2024, up from 180 the previous year. Despite the crowded field, four leading OEMs captured a dominant 80 per cent share of the 1.3 million electric 2Ws sold—marking electric 2Ws as 6 per cent of the total two-wheeler market.
Although electric 2Ws still cost more upfront than their internal combustion engine (ICE) counterparts, increased competition and continued policy incentives are helping to narrow the price gap. The average price difference between battery electric vehicles (BEVs) and ICE vehicles fell below 15 per cent for small cars and 25 per cent for SUVs in 2024.
The report also sheds light on India’s electric car market, which saw a modest 2 per cent annual increase, reaching around 100,000 units sold in 2024. However, momentum appears to be building, with Q1 2025 sales nearing 35,000 units—a 45 per cent year-on-year jump.
High import duties and the emergence of affordable, locally manufactured models have kept imports from China relatively low. In fact, less than 15 per cent of EV sales in India were attributed to Chinese imports in 2024. The MG Comet EV, produced by Chinese automaker SAIC but manufactured locally, emerged as the lowest-priced EV in India, selling for under $8,000. By contrast, imported Chinese BEVs averaged nearly twice that cost.
Notably, every BEV made by Indian automakers was priced below $20,000, while none of the imported Chinese models fell under that price point.
Meanwhile, the Indian electric bus sector has experienced explosive growth. Since 2020, the number of electric buses deployed has jumped nearly four-fold—from under 3,000 to more than 11,500 by the end of 2024.
On the manufacturing front, India’s electric 2W industry is scaling rapidly. The top 80 electric two-wheeler manufacturers reported a combined production capacity of 10 million units in 2024—almost eight times the year's domestic sales. That figure is expected to climb to 17 million units, based on OEM expansion plans.
The IEA’s findings underscore India’s accelerating transition toward electric mobility, with a strong focus on affordability, local manufacturing, and government support serving as key drivers across multiple vehicle segments.