Electric Car Sales To Double This Year: 5 Reasons

The popularity of electric vehicles is definitely on the rise, and that is one of the reasons why more players are entering this space. The demand for electric vehicles is expected to go up in the near future, and we have reasons to believe that. With the rise in demand, we are expecting to see an increase in the sales of EVs too. Electric car sales are likely to double this year. We have five reasons to believe that, but before we delve into the reasons for the rise in EV sales, let’s take a quick look at the sales of EVs this year in India.

In the year 2024, the electric vehicle industry, or segment, in India hit a new milestone. The EV segment recorded a year-on-year growth of 26.5 percent. Till December 29, 2024, 1.94 million units of electric vehicles had been sold in India, as per Vahan data. In 2023, the numbers were 1.5 million units.

The numbers mentioned above are for the electric vehicle segment completely. This includes, 2,3 and 4 wheelers. However, if you take only the four wheelers alone, 98,841 units of EVs have been sold across India as per vahan website. This number is likely to get double this year

While the industry failed to touch the 2 million milestone last year, we are confident that the numbers are only going to rise from here onwards. The reasons for this are the introduction of new models. With the arrival of new and better electric vehicles, people will eventually try them out and buy them. This will only make things more interesting for the EV segment in India.

Reason #1 – Mahindra

Mahindra has been working on a variety of electric vehicles for some time, and 2025 is the year when we will see all these SUVs on the road. The Indian SUV manufacturer recently launched its all-new range of electric vehicles. Mahindra will be selling the BE 6 and XEV 9E in the market.

With the kind of response we have seen for Mahindra vehicles in the past, it is safe to expect an overwhelming response for the upcoming EVs too. Mahindra is aiming for 8,000 units in monthly sales from these EVs.

Similarly, upcoming EVs like the XUV 3XO EV (XUV400 facelift) and XEV 7e (XUV 700 Electric) might also fetch anywhere between 500 and 1,000 units for Mahindra.

Reason #2 – Hyundai

Hyundai recently unveiled a teaser fully revealing its upcoming electric SUV, the Creta Electric. Creta has been an extremely popular SUV among customers in India for a very long time, and we anticipate a similar response for the EV version. Hyundai will offer a balance between comfort and power that most customers want. Hyundai might be able to sell around 2,000 units of the Creta Electric once launched.

Reason #3 – Maruti & Toyota

Another electric SUV set to be launched is the electric version of the Maruti Grand Vitara. The e-Vitara has been unveiled internationally and is expected to debut in India later this month. The official launch of the e-Vitara is expected in the first half of 2025, and a few months later, we can expect Toyota’s version of the SUV as well. Maruti is aiming for 1,000 units from the e-Vitara, while Toyota expects around 500 units.

Reason #4 – Kia

Kia will introduce a 7-seater MPV. They have been testing the Carens EV for quite some time. The facelifted Carens will arrive in India later this year, and we expect the electric version of the Carens to hit the market soon after. If Kia launches the MPV, it would not be unreasonable to expect 1,000 units from the Carens EV.

Reason #5 – Tata

Tata has made a name for itself in the EV space. In 2025, Tata will launch new products like the Harrier EV and Safari EV. Tata might also bring the Sierra EV to the market this year. If that happens, we expect Tata to sell between 1,000 and 2,000 units a month.

Conclusion

While car sales were not great in 2024, we expect them to improve in 2025. With more options for customers in the form of EVs, we anticipate that demand for EVs will also increase. All the EVs mentioned above are likely to contribute significantly to sales, and in 2025, the total sales of electric vehicles in India might double compared to last year.

Via: ACI