August 2024 Records Lowest Retail Sales for Electric Vehicles in India
The Indian electric vehicle (EV) market witnessed a significant downturn in August 2024, marking the lowest retail sales of the year across electric multi-purpose vehicles (MPVs), sports utility vehicles (SUVs), and passenger vehicles. According to the sources, which released retail sales statistics on September 2, only 6,335 units were purchased and delivered in August. This figure represents a 10% decline compared to the 7,012 units sold in August 2023 and an even steeper 19% drop from the 7,898 units sold in July 2024.
Tata Motors: Market Leader Faces Decline
Tata Motors, the leader in the electric passenger vehicle segment, sold 4,085 EVs in August 2024. This performance, though dominant, reflects a 14% year-over-year (YoY) decrease from the 4,777 EVs sold in August 2023, highlighting the growing competition in the market. Tata Motors’ EV portfolio includes the popular Nexon EV, Tigor EV, Tiago EV, Xpres-T (targeted at fleet operators), Punch EV, and the newly launched Curvv EV. Despite the monthly decline, Tata Motors remains a strong player, holding a 64% market share in August 2024, although this is down from 68% in August 2023.
Over the first eight months of 2024, Tata Motors sold 42,242 units, representing a 6% YoY increase compared to the 39,909 units sold during the same period in 2023. This also means that Tata has already achieved 70% of its target of selling 60,000 units by the end of 2024.
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MG Motor India: A Rising Contender
MG Motor India emerged as a significant contender in August 2024, selling 1,353 units and securing a 21% market share. This marks a notable increase from the 17% market share it held in August 2023. MG Motor India’s lineup includes the ZS EV and the Comet EV, and the company has ambitious plans to launch the Windsor, a new electric vehicle priced under Rs 20 lakh, which is expected to further bolster its market position.
The company is also expanding its sales network aggressively, especially in Tier 3 and Tier 4 cities and rural areas across India. By the end of 2024, MG Motor India aims to establish 100 new touchpoints, with a goal of reaching 520 touchpoints across 270 cities by March 2025.
Mahindra: Steady Growth with the XUV400
Mahindra, the third-largest EV manufacturer in India, sold 317 units of its sole electric vehicle, the XUV400, in August 2024. This represents a decline from the 508 units sold in July 2024, reducing its market share from 6.45% to 5%. However, the company has seen substantial growth over the first eight months of the year, with 4,682 units sold—a 95% YoY increase from the 2,393 units sold in the same period in 2023.
Mahindra is preparing for future growth, aiming to increase production capacity to 100,000 units of its upcoming Born Electric vehicles by March 2025. The company has also announced plans to invest Rs 12,000 crore in its EV initiative, which includes launching several new models based on the INGLO platform, with key components sourced from the Volkswagen Group.
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Citroen India: Gradual Rise in Sales
Citroen India, operating under PCA Motors, sold 159 units of its e-C3 electric hatchback in August 2024. This represents a 1% increase from July 2024 and a 35% increase from the 118 units sold in August 2023. The e-C3, which comes with a 29.2kWh battery pack and an ARAI-certified range of 320km, has seen growing demand, particularly from EV fleet operators. Citroen expects sales to pick up later in the year, driven by bulk orders from companies like Blusmart, OHM E Logistics, and Cab-E, which have collectively placed orders for nearly 7,000 units between March and June 2024.
Hyundai: Struggles Amidst Discontinuation
Hyundai sold only 39 units of its Ioniq 5 EV in August 2024, marking its lowest monthly EV sales in the last eight months. With the discontinuation of the Kona in India, the company’s total EV sales from January to August 2024 reached 798 units, an 11% decline from the 903 units sold during the same period in 2023.
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Luxury EV Market: Facing a Downturn
The luxury EV market in India also experienced a decline in August 2024, with retail sales falling by 14% to 155 units, compared to 180 units in August 2023. This mirrors the broader trend of declining sales seen in the general EV market.
However, cumulative sales for luxury EVs in the first eight months of 2024 tell a different story. According to Vahan data, the total retail sales for seven automakers reached 1,702 units, a 24% YoY increase compared to the 1,371 units sold during the same period in 2023.
Mercedes-Benz India led the luxury segment with 48 EVs sold in August 2024, 14 more than in July 2024. The company’s total sales from January to August 2024 reached 488 units, representing a 90% YoY increase from the 256 units sold during the same period in 2023. This gives Mercedes-Benz a 29% market share in the luxury EV segment. The company is just 27 units short of its 2023 target of 515 units as of the end of August.
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Volvo Auto India followed with 29 EVs sold in August, 13 fewer than in July. The company’s total sales for the first eight months of 2024 reached 349 units, up 8% from the 324 units sold during the same period in 2023, capturing a 20% market share in the luxury segment.
Audi India sold 10 EVs in August, bringing its total for the year to 113 units—a 68% YoY increase. Audi currently holds a 7% market share in the luxury EV segment.
A Promising Outlook for 2024
Despite the challenges faced in August, the overall EV market in India has shown robust growth in 2024. Total sales for the first eight months reached 62,931 units, an 18% YoY increase from the 53,491 units sold during the same period in 2023. This represents 76% of the 82,494 units sold in the entire year of 2023, setting the stage for the market to potentially surpass one million retail sales by the end of 2024.
The year began with strong sales of 8,470 units in January, followed by an 11% month-over-month decline to 7,508 units in February. Sales peaked in March with 9,746 units sold, coinciding with the end of the fiscal year 2024. However, the subsequent four months saw retail sales dip below 8,000 units, reflecting the market’s fluctuations and the growing competition in the EV sector.