In a surprising turn of events, India’s electric vehicle (EV) market has hit a rough patch. September 2024 saw EV sales plummet to a 19-month low of 5,733 units, marking a 9% year-on-year decline. This downturn mirrors the global trend, particularly in Europe, where battery electric vehicles (BEVs) experienced their most significant drop since January 2017.
Major Players Feel the Pinch
Tata Motors: The Giant Stumbles
Tata Motors, India’s EV market leader, felt the impact acutely. With sales of 3,530 units in September, the company saw an 18% year-on-year decline. This slip reduced Tata’s market share from 68% to 61% compared to the previous year. In response, Tata has implemented aggressive price cuts and promotional offers to stimulate demand during the festive season.
MG Motor India: Mixed Signals
While MG Motor India reported a 7% year-on-year increase, selling 955 units in September, it experienced a significant 32% month-on-month decline. The company’s introduction of a Battery-as-a-Service (BaaS) program aims to make EVs more accessible by reducing upfront costs.
Mahindra: A Silver Lining
Bucking the trend, Mahindra saw a 23% year-on-year increase in September, selling 443 XUV400s. The company’s ambitious plans for expanding its EV lineup and manufacturing capacity signal confidence in the market’s long-term potential.
Luxury Segment: A Tale of Resilience
The luxury EV market showed signs of strength amidst the overall slump. Despite a 14% year-on-year drop in September, the segment has grown by 20% in the first nine months of 2024. BMW India leads the pack with a 41% market share, followed by Mercedes-Benz and Volvo.
Looking Ahead: Challenges and Opportunities
The current downturn presents both challenges and opportunities for India’s EV market. While short-term sales have dipped, manufacturers are doubling down on innovation and customer incentives. The introduction of new models, pricing strategies, and financing options suggests that the industry is gearing up for a potential rebound.
As the festive season approaches, all eyes will be on October’s sales figures to see if the market can regain its momentum. The EV sector’s ability to navigate this slump will be crucial in determining the future trajectory of electric mobility in India.
