India’s EV growth trails Southeast Asia, Latam as global sales hit new high: IEA

BENGALURU: Electric vehicle (EV) sales surged globally to over 17 million units in 2024, but India’s adoption continues to lag behind peer economies despite modest gains, the International Energy Agency’s (IEA) Global EV Outlook 2025 showed.

India’s EV penetration reached around 2% of total car sales last year, with nearly 100,000 electric cars sold. In contrast, countries such as Brazil and Vietnam posted sharper growth. Brazil’s EV sales more than doubled to 125,000 units in 2024, representing a 6.5% share of total car sales, while Vietnam’s market share jumped to 17%, supported by domestic manufacturer VinFast, which also began exporting to Southeast Asia and the US.

China led global EV adoption, accounting for nearly two-thirds of global electric car sales in 2024 with over 11 million units sold. Nearly one in two cars sold in China last year was electric. Southeast Asia emerged as a fast-growing cluster, with electric car sales in the region rising nearly 50%, led by Thailand, Indonesia, and Vietnam. Thailand, despite a 10% drop in absolute sales, saw its EV share rise to 13% as conventional car sales declined even more sharply.

India’s EV market remains dominated by Tata Motors, although new joint ventures and entrants are beginning to emerge. A joint venture between JSW and Chinese automaker SAIC, which sells EVs under the MG Motor brand, split its production between local assembly and imports from China. Chinese imports also play a significant role across emerging markets, accounting for 85% of electric car sales in Brazil and Thailand.

The IEA notes that India’s growth, while improving, remains limited by pricing gaps, weaker policy incentives for cars compared to two- and three-wheelers, and slower infrastructure buildout. In the first quarter of 2025, India’s EV sales rose 45% year-on-year to nearly 35,000 units, but its market share remains below that of regional peers.

Globally, EVs accounted for more than 20% of new car sales in 2024. The IEA projected this could rise to 25% in 2025, with overall sales expected to exceed 20 million units. China, Europe, and the US will remain dominant markets, but emerging economies outside China are expected to double their EV sales to 1 million units this year.

India’s performance, the report noted, will depend on greater affordability, clearer policy signals, and domestic production scale-up.


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