Electric three-wheeler sales in India near 7 lakh units, driven by policy support and rising demand
New Delhi, May 18 – India has once again emerged as the world's largest market for electric three-wheelers (e-3Ws), with nearly 7 lakh units sold in 2024, marking a year-on-year growth of nearly 20 percent, according to the International Energy Agency (IEA) in its Global EV Outlook 2025 report.Despite a 5 percent decline in the overall global three-wheeler market, electric variants saw more than 10 percent growth, surpassing 1 million units globally. Electric three-wheelers now make up almost 25 percent of all 3W sales, up from 20 percent in 2023. India and China together accounted for over 90 percent of both electric and conventional 3W sales.
India Widens Lead Over China in E-3W Segment
While China’s electrification of three-wheelers has stagnated below 15 percent for three years, India surged ahead, maintaining its leadership from 2023. The share of electric vehicles in India’s three-wheeler market rose to a record 57 percent in 2024, an increase of 3 percentage points from the previous year.This momentum is expected to continue, supported by the PM E-DRIVE scheme, which allocated funds in 2024 to deploy over 3 lakh electric 3Ws for commercial use. The total fleet of electric and internal combustion engine (ICE) three-wheelers in India was estimated at over 10 million in 2023.
India’s Electric Two-Wheeler Market Gathers Pace
India's electric two-wheeler (e-2W) sector is also gaining traction. The number of domestic OEMs rose from 180 in 2023 to 220 in 2024, although the top four manufacturers held 80 percent of the 1.3 million e-2Ws sold. This figure represented 6 percent of the overall 2W market.Despite higher upfront costs compared to ICE models, increasing competition and supportive policies are helping to close the affordability gap. Market leader Ola launched the S1X model with a 2 kWh battery and 6 kW peak power at ₹70,000, lower than the average price of the top five ICE 2Ws.
The PM E-DRIVE policy, which extends support previously available under FAME-II and the Electric Mobility Promotion Scheme, provides purchase subsidies of up to ₹5,000/kWh for lithium-ion battery-equipped 2Ws and targets the rollout of 2.5 million e-2Ws by March 2026.
India’s 80 largest electric 2W manufacturers had a combined production capacity of 10 million units in 2024 — nearly eight times the domestic demand — and this is projected to rise to 17 million units with ongoing capacity expansions.
Electric Car Sales Remain Modest, but Grow Steadily
Electric car sales in India reached nearly 1,00,000 units in 2024, accounting for just 2 percent of total car sales, though marking a 45 percent year-on-year increase. In the first quarter of 2025 alone, sales reached almost 35,000 units.High import duties and an increasing number of affordable domestic options have kept Chinese EV imports below 15 percent. While the lowest-priced battery EV — the MG Comet EV from SAIC — is made in India and priced under USD 8,000, most imported Chinese EVs were priced at twice that amount.
In 2024, all BEVs from Indian manufacturers were priced below USD 20,000, unlike imported models. The price gap between BEVs and ICE cars fell to below 15 percent for small cars and 25 percent for SUVs.
