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Highlights
29,387 BEVs and 28,438 HEVs were sold in Q1 2024.
The market share of BEV and HEV was 2.6% and 2.5% of total PV sales, respectively.
BEV sales growth was driven by a new product - Punch EV, introduced by Tata in Q1 2024.
Tata and Toyota continue to dominate the BEV and strong-hybrid EV markets with 68% and 87%, respectively.
Tata Punch EV was the best-selling BEV product, and Toyota Innova Hycross was the best-selling strong-hybrid EV.
Market
There was a strong surge in Q1 BEV sales due to the introduction of the Tata Punch EV and high dispatches of the Mahindra XUV 400 before the FY 2023-24 closure to manage internal CAFE figures. Sales growth for other BEV products was largely flat.
HEV sales were largely driven by Toyota’s products selling on their own merit, as all current BEV products just attract a 5% incentivized GST rate, on the other hand, current HEV products are in the 43% GST slab. However, Maruti (cross-badge Toyota’s) and Honda HEV products were available at a discount in Q1 2024.
The average car sales price for BEVs is ₹ 14.1 lakhs, and for HEVs it is ₹ 25.6 lakh, with a sales gap of a mere 3%.
Q1 2024 EV Price war
Globally, lithium prices have collapsed after a rapid rise during the COVID-19-induced pandemic period. This is also attributed to a slowdown in the growth rate of BEV sales globally.
MG in early February 2024 has reduced the prices of the ZS EV and Comet EV up to ₹ 3 lakh. In retaliation, Tata also reduced the prices of the Nexon EV and Tiago EV up to ₹ 1.2 lakh in the ensuing week. Mahindra already reduced prices up to ₹ 1.5 lakh in late 2023 while launching the updated XUV 400. All other BEVs were selling at discounts in 2024, including the recently launched Tata Punch EV.
Q1 2024 EV Policy updates
After intense lobbying by Tesla, the Government of India has tweaked the import tariff barrier in favor of EVs by reducing custom duty to 15% on CBU (completely-built-up) for EVs with a CIF (cost-insurance-freight) value above US$35,000, limited to 8,000 units in a year, provided automakers invest at least US$500 million and set up a factory in India within 3 years. Currently, CBU cars attract custom duty of 70% to 100%, depending on the CIF value and engine size. However, the mass market will remain unaffected due to this policy change as there is an entry price barrier imposed by the government.
Q1 2024: Manufacturer-wise analysis
Tata remains the largest BEV maker in India, with a 68% market share.
Mahindra has captured a sizable market share in 2024 with an updated XUV 400 and price correction.
Toyota continues to lead HEV sales with an 87% share.
Maruti comes next, and Honda’s sales have less traction due to higher pricing.
Body style
Crossovers now have a higher BEV segment share of 65%; hatchbacks are losing again in the BEV segment too.
Currently, the HEV segment is limited by UV-dominated body styles from Toyota and Maruti.
Product: Analysis and Q1 2024 Updates
Tata has introduced the Punch EV with a two-battery pack option and a whole host of equipment in the crossover segment.
BYD introduced the fully imported Seal with RWD and AWD options in the premium sedan segment.Â
The Tata Punch EV was the best-selling BEV in 2024.
Other BEV products had limited sales traction, and discounts were on the higher side.
The Toyota Innova Hycross was the best-selling HEV in 2024, followed by the Toyota Hyryder.
Citroen eC3 was awarded 0 stars for adult occupant protection under the new crash test protocol of GNCAP in Q1 2024.
For reference, in 2021 under the old GNCAP protocol, Tata Tigor EV scored 4 stars for adult occupant protection.