EV Price Trends in 2024 in India (2024)

FAQs

Will EV prices go down in 2024 in India? ›

In India, these batteries are mostly imported, which has been a major factor driving up prices of EVs. However, with the recent waiver of customs duties on lithium-ion batteries in the Union Budget for 2024, there is a possibility that the prices of electric cars in India will see some decline.

Electric Vehicles Market Share in India

By 2030, NITI Aayog expects to reach 70% EV market penetration for all commercial vehicles, 30% for private vehicles, 40% for buses, and 80% for two and three-wheelers. This is consistent to reach net zero carbon emissions by 2070.

India is experiencing a significant surge in EV adoption, and there are compelling reasons why now may be the ideal time to consider purchasing an electric vehicle in the country. In recent years, the shift towards sustainable living has brought the electric vehicle (EV) industry into the spotlight.

Total EV sales grew in the US by 14% in the second quarter of 2024 when compared with the same period last year. As in the top European markets, much of that rise can be explained by the growth in hybrid sales, which grew by 28% year on year. In contrast, ICE sales decreased by 4% in the same period.

Car Prices Will Likely Continue To Decrease

“Last month, the average price for a new vehicle was [$47,936] — a [1.4%] dip from last year, according to the latest KBB data. This suggests that new car prices might drop in 2024.” One factor that could lead to price drops is an oversupply of new cars.

According to several industry estimates, EVs will become cheaper to own than gas cars sometime between 2025 and 2026.

Projections indicate that the Indian EV market, valued at US$2 billion in 2023 could surge to US$7.09 billion by 2025. Industry estimates also forecast the domestic EV market to achieve 10 million annual sales by 2030.

Advantage India

*The Indian EV market is forecasted to expand from US$ 3.21 billion in 2022 to US$ 113.99 billion by 2029, with a 66.52% CAGR. *The Indian EV battery market is projected to surge from US$ 16.77 billion in 2023 to a remarkable US$ 27.70 billion by 2028.

Despite what many may believe, the future of electric vehicles in India is incredibly bright. Thanks to the advent of path-breaking EV technologies in India as well as the world and the willingness to share these technologies for the global good has led to low manufacturing and driving costs.

Electric two-wheelers set to dominate Indian market with 50-60 per cent conversion by 2030. In terms of sales volume, Tata Motors led the market in 2023, selling 53,199 units. It was followed by SAIC with 12,562 units and Mahindra & Mahindra with 8,286 units.

Why not to buy electric car in India? ›

Disadvantages of Electric Vehicles

Higher purchase cost: A major obstacle to buying an electric car is the high upfront cost. Though it can be offset by the lower running and maintenance cost, fuel, and tax incentives, it is still a deciding factor for many since one can buy a bigger petrol car for the same price.

The initial purchase cost of EVs is still high compared to IC engine cars. However, as EVs are becoming more popular, the gap is reducing. BHPian Omkar recently shared this with other enthusiasts. EVs have seen wide acceptance in India over the past few years from the people as well as the government.

Market analyst firm Cox Automotive noted a 9% decrease in the average transaction price for a new EV in the first quarter of 2024 compared to that period in 2023. Tesla's average transaction price dropped by 13.3% thanks to its aggressive price cuts.

In 2024, AI-driven features like autonomous driving and smart navigation systems are becoming standard in many EVs. These technologies not only make driving safer but also more enjoyable. Imagine sitting back and letting your car handle the complexities of traffic while you focus on the fun country roads.

The price tag on new electric vehicles is still higher than gas-powered vehicles. Kelley Blue Book estimates that prices on new EVs dropped from $65,000 in May 2022 to $56,648 in May 2024, a 15% decline.

Simply put, EV prices are most likely to go down once they become truly mainstream. The great news is that many analysts agree that we reached that point in 2023. With EV market share climbing to a new record of 8.1% of all new vehicle sales in America in 2023, the EV revolution is happening slowly but surely.

By 2025, EV adoption is expected to surge, driven by environmental concerns, technological advancements, and supportive government policies. One of the critical factors that will shape the future of electric mobility is the development of EV charging infrastructure.

The cost to make a new electric car could fall to the same level as gas-powered ones as soon as 2027 because of more efficient manufacturing, according to a March 7 report from the technology consulting firm Gartner.

EV Industry Expected that by 2025

However, it is expected that by 2025, the 2W segment is likely to have a market penetration of ~ 10% which may go up to ~30% by 2030.