India’s electric vehicle (EV) market enjoyed a significant surge in October, thanks to the festival season, ending a two-month slowdown and reaching a new monthly sales record. Registrations jumped to 217,716, up 35% from 160,237 units in September. This marks the highest monthly sales on record, even surpassing March’s 213,063 units, which saw strong demand in the final days of the FAME-II program. October also marked the second time this year that monthly EV sales crossed 200,000, pushing the year-to-date total to over 1.6 million, according to Vahan data from India’s Ministry of Road Transport and Highways.
Leading the segment, electric two-wheelers recorded 954,241 units, accounting for 59% of all EV sales. Electric three-wheelers followed with 568,419 units, or 35% of the market, while electric cars contributed 83,802 units, with other commercial EVs, including buses and trucks, making up the remaining 1%.
The festival season sparked a buying spree, with original equipment manufacturers (OEMs) offering substantial discounts. These promotions were further supported by the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) program, a new government initiative launched on October 1 with a $1.31 billion budget over two years. The PM E-DRIVE program is designed to accelerate EV adoption through subsidies across various vehicle categories.
“The combination of festival discounts, incentives, and PM E-DRIVE funding acted as a catalyst for the EV market,” stated Preetesh Singh, Specialist in CASE and Alternative Powertrains at NRI Consulting & Solutions.
Electric two-wheeler sales saw a significant increase of over 50%, reaching 139,097 units from 90,372 units in September, while electric three-wheeler sales rose 7% to 67,170 units. With ongoing government incentives, experts are optimistic about further growth, although they emphasize the importance of improving EV quality and service.
In September, the leading electric two-wheeler manufacturer faced challenges after more than 10,000 customers raised concerns over service quality, leading the Central Consumer Protection Authority to issue a notice. Industry observers warn that if other companies experience similar issues, it could hurt the segment’s reputation.
