Overall, vehicle sales surpassed the 1.23 million mark in the first eight months of 2024.
Sales of electric vehicles (EVs) fell 13 per cent to 156,199 units in August. But despite this drop, August sales still represent the third-highest monthly total this year, after March and July, when 213,000 and 178,900 vehicles were sold, respectively, according to Vahan data from the Ministry of Road Transport and Highways.
Overall, vehicle sales surpassed the 1.23 million mark in the first eight months of 2024.
However, monthly sales have decreased fourfold this year compared to the previous month. February saw a slight decline of 2.3 percent compared to January figures, June saw a slight drop of 0.5 percent compared to May, and April saw the most significant drop of 45.6 percent compared to March. In August, sales decreased by 13.2 percent.
Both the highest sales and the biggest declines this year have come in the months following specific policy changes. In May last year, sales peaked due to a government decision to reduce the maximum subsidy under the Faster Adoption and Manufacturing of Electric (and Hybrid) Vehicles (FAME) scheme for electric two-wheelers from around ₹60,000 to ₹22,500, effective from June 1. This policy change led to a surge in sales in May, followed by a 35 per cent drop in June.
This year, sales declined following the end of the FAME subsidy on March 31 and the introduction of the Electric Mobility Promotion Plan (EMPS) 2024, which further halved the subsidy, resulting in the sharpest drop of the year.
March saw the biggest sales in the history of the sector. The EMPS scheme was originally due to expire on 31 July, but a government notification on 26 July extended the deadline by two months. Experts suggest that many customers decided to buy before this extension was announced.
First published: September 2, 2024 | 12:11 pm IS
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