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Overall, vehicle sales surpassed the 1.23 million mark in the first eight months of 2024.
Sales of electric vehicles (EVs) fell by 13 per cent to 156,199 units in August. But despite this decline, August sales still represented the third-highest monthly total this year, following March and July, which saw 213,000 and 178,900 vehicles 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 four times this year compared to the previous month. February saw a slight decline of 2.3 per cent from January’s figures, June experienced a minor dip of 0.5 per cent from May, and April recorded the most significant drop of 45.6 per cent from March. In August, sales declined by 13.2 per cent.
Both the highest sales and the sharpest declines this year occurred 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 shift 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 Scheme (EMPS) 2024, which further halved the subsidy, resulting in the steepest decline of the year.
The industry’s highest-ever sales were recorded in March. The EMPS scheme was originally set to expire on July 31, but a government notification on July 26 extended the deadline by two months. Experts suggest that many customers decided to purchase before this extension was announced.
First Published: Sep 02 2024 | 12:11 PM IST
