EV sales likely to touch 1 lakh units

In 2024, India’s electric vehicle (EV) market experienced significant growth, with sales reaching 1.95 million units, a 27% increase from the previous year. Electric two-wheelers dominated the market, accounting for nearly 59% of total EV sales.

This surge in EV adoption is part of a broader trend in which India aims to reduce its carbon footprint and transition towards sustainable mobility.

Positioning itself to become a key player in India’s EV sector through its Sustainable Electric Mobility Policy 4.0 is Andhra Pradesh where the state’s new EV policy will span from 2024 to 2029.

The policy aims to transform the state into a hub for EV innovation and manufacturing by integrating public transportation providers, private fleet operators, and charging infrastructure developers.

The state government plans to fully electrify the Andhra Pradesh State Road Transport Corporation (APSRTC) fleet and establish a dense charging infrastructure.

Andhra Pradesh’s EV sales have already crossed over 30,000 units in January 2025, and courtesy the new policy is projected to increase significantly, potentially reaching 100,000 by the end of March 2025. “The new EV policy has certainly given a boost to sales.

EV sales have drastically increased in the current year. Last fiscal total EV sales were 36k+ while in the current fiscal we have already achieved 30k+ as of Jan 2025.

With 2 more months to go this will increase further” said Dr. G.C. Raja Ratnam, Deputy Transport Commissioner, Admin (Act & Rules), Transport Commissioner’s office, Vijayawada speaking exclusively to Vizag Industrial Scan.

By 2029, Andhra Pradesh targets registering at least 200,000 new electric two-wheelers, 10,000 new electric three-wheelers, and 20,000 new four-wheeler battery electric vehicles (BEVs).

Industry too has overall welcomed the new policy with several industry leaders expressing optimism on the new policy and its potential to boost the sector.

“Andhra Pradesh’s new EV policy signals a strong push toward sustainable mobility, offering incentives for manufacturers and consumers alike.

With a focus on developing EV clusters, charging infrastructure, and skill development, the state aims to position itself as a major EV hub” noted Mr. Prashant Vashishtha, Founder & Chairman, Sokudo Electric India.

Similarly, Mr. Dinesh Arjun, Cofounder of Raptee.HV, said, “Andhra Pradesh’s forward-thinking EV policy sets the stage for India to become a global hub for high-voltage electric vehicle manufacturing—because high voltage is the future.

By allocating INR 250 Cr towards research and innovation, the state is not only fostering Indigenous advancements in battery management, fuel cells, and drivetrain technologies but also laying the groundwork for a self-reliant EV ecosystem.”

Another OEM in the EV space Mr Rohit Vadera, Co-Founder and CEO, PURE, highlights, “The government of Andhra Pradesh’s vision for Sustainable Electric Mobility is truly inspiring and the policy is a testament to the state’s commitment to a cleaner future. This policy isn’t just about reducing emissions; it’s about building a thriving EV ecosystem from the ground up.”

Despite the optimism there are few challenges that the sector faces such as slower adoption rate compared to leading states, limited charging infrastructure with just 601 stations, safety concerns stemming from battery incidents, high upfront EV costs, and challenges in after-sales service.

This the industry hopes will be overcome with the new and supportive EV policy that incentivizes both manufacturers and consumers and fosters collaboration among stakeholders.

Andhra Pradesh’s EV sector is thus poised for growth and is driven by a supportive policy framework and increasing demand for sustainable mobility solutions. This coupled with sustained government support and private sector participation, Andhra Pradesh can certainly emerge as a significant player in India’s EV revolution.

The policy’s success however will also depend on its execution—if effectively implemented, it could attract investments, generate employment, and accelerate EV adoption opined industry leaders.