Top five states switching to electric vehicles in India

Electric vehicle registrations in India soared to 1,752,406 units in the fiscal year to March, marking a 40.31% year-on-year increase. The top five states by sales—Uttar Pradesh (17.42%), Maharashtra (12.11%), Karnataka (9.66%), Tamil Nadu (5.77%), and Rajasthan (5.61%)—accounted for over 50% of the total market share, government data showed.

Growth across the country was primarily led by electric two-wheelers (E2Ws) and electric three-wheelers (E3Ws), which comprised 94% of overall EV sales across categories for the fiscal year, data showed

A look at what’s driving EV adoption in these five states, based on research by consultancy JMK Research and Analytics:

1. Uttar Pradesh

No. of EVs sold in FY24: 305,355

As of May, Uttar Pradesh was among the leading beneficiaries of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) II scheme—an Indian government initiative to boost EV adoption through financial incentives. The state received about ₹395 crore in subsidies under the scheme, accounting for 6% of the total national disbursement under the program. The third iteration of the program is in the works and may be approved when the government presents the budget next month.

The northern state is boosting its EV charging network and, as of May 2024, boasts 583 public charging stations that make up 3.57% of India’s total. Despite the poor charging infrastructure for a big state, Uttar Pradesh leads in EV sales, primarily due to the popularity of E3Ws, which typically use simple charging plugs. The state is also home to several E3W makers, which is another reason behind their soaring sales.

2. Maharashtra

No. of EVs sold in FY24: 212,352

Maharashtra leads the race in the E2W and e-cars category. Of the total 1.09 million E2W units sold in India last fiscal, Maharashtra with 1,83,879 units holds about 18% share. The state tops in e-car sales, with 14,143 units and about 14% market share.

The Maharashtra EV policy aims for a 10% EV adoption rate by 2025. In the fiscal year 2024, EVs comprised 8.12% of total vehicle sales in the state, indicating a promising trend toward achieving the specified goal within the established timeline. The state boasts the highest number of electric cars in the country, primarily due to the extensive presence of electric cabs and robust public charging network in the state.

As of May 2024, Maharashtra has availed subsidy worth more than ₹1,148 crore, which is 17.75% of total subsidy disbursed nationwide under FAME II.

The state has 3,083 public EV charging stations, the second highest number in the country and about 19% of the overall. Pune and Mumbai together host more than 75% of the overall public charging stations in the state. This can be attributed to the city’s better connectivity with highways.

3. Karnataka

No. of EVs sold in FY24: 169,826

The southern state sold the second highest number of E2Ws in the country last fiscal at 149,767, or about 15% share of the overall market nationwide. The state also ranked second in e-cars sales with 13,288 units, capturing a 13% market share.

As of May, Karnataka has effectively utilized the FAME-II subsidy program by securing subsidies worth over ₹1,002 crore, or about 15% of the total subsidies disbursed nationwide. The state hosts the most operational public charging stations in the country at 5,130, or about 31.38% share of the overall stations in the country.

Karnataka is home to top E2W manufacturers Ola Electric, Ultraviolette and Ather Energy. With a 9.34% EV adoption rate last fiscal, Karnataka is setting a precedent for sustainable transportation initiatives across the country.

4. Tamil Nadu

No. of EVs sold in FY24: 101,204 units

Tamil Nadu ranked fourth in EV sales last fiscal year at 101,204 units, constituting about 6% of the total EV sales in India and a 41% year-on-year growth.

In FY2024, overall EV adoption in the state rose to 5.36%, against about 4% in the previous fiscal year. Buyer preferences in the state heavily favor personal mobility options, such as E2Ws and e-cars.

Tamil Nadu has availed subsidies amounting to ₹414 crore under the FAME-II scheme, accounting for 6.4% of the total subsidies distributed nationwide. The majority of this subsidy, ₹364 crore, was used in the E2W category.

The state boasted 643 public charging stations, or about 4% of nationwide total, as of end May. The state government has declared six cities: Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, and Tirunelveli, as EV cities. These host about 49% of total public charging stations in the state. Companies such as Ola Electric, TVS Motors, and Ather Energy have set up manufacturing bases in the state, while others such as VinFast have initiated the construction of EV factories.

5. Rajasthan

No. of EVs sold in FY24: 98,351

Total EV sales in the northern state rose about 11% in EV sales for FY2024, attributed to the increase in E3W and e-car sales when compared with the previous fiscal year. Rajasthan has shown promise in the adoption of electric vehicles, particularly in the E3W cargo category, where about 67% of cargo three-wheelers are electrified.

The state has availed subsidies of ₹296.69 crore under the FAME-II scheme, representing 4.58% of the overall nationwide subsidies, with about 86% of the total subsidy so disbursed being allocated to the E2W segment.

The state’s EV policy focuses on building a robust public charging station network by offering capital subsidies for charging infrastructure and concessional power tariffs, with expectations of a substantial increase
in the overall number of charging stations. As of May end, Rajasthan had 500 public charging stations,  or about 3% the of nationwide total, primarily clustered in Jaipur, Udaipur, Kota, and Jodhpur. Rajasthan is home to E2W makers Hop Electric, Battre and Okinawa.