In a remarkable achievement, India has witnessed a rapid surge in electric vehicle (EV) sales, surpassing the one-million mark in just under nine months of 2023. This milestone, previously taking a full year to achieve in 2022, marks a significant shift in the country's automotive landscape.
According to data sourced from the Ministry of Road Transport and Highways' Vahan Dashboard, an impressive 1,037,011 EVs were registered with regional transport offices by September 19, accounting for 6.4% of total automobile sales this year.
The driving forces behind this surge include increased individual purchases and substantial business-to-business (B2B) acquisitions by EV fleet operators. Industry insiders point to the vital role played by initiatives like Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) and the expansion of charging infrastructure, which have contributed significantly to the growing adoption of EVs.
Preetesh Singh, a specialist in CASE (Connected, Autonomous, Shared, Electric) and alternate powertrains at NRI Consulting and Solutions, highlights several factors propelling the EV industry's growth. These include the recent launch of high-quality EVs, tax incentives, improved financing options, and a robust swapping facility.
In terms of vehicle segments, the two-wheeler category emerged as the leader, representing 56% of all EVs sold in 2023, followed by three-wheelers and passenger vehicles. Monthly EV sales consistently exceeded 100,000 units throughout the year, with May setting a record high of 158,374 vehicles sold.
While there was a noticeable dip in sales in June following subsidy cuts under the FAME-II initiative, resulting in a 35% decline with sales dropping to 102,447 units, the industry began its recovery in July. By August, sales had rebounded with 126,741 units sold, representing a 23% increase from the June levels.
India's journey towards electric mobility is not only breaking records but also reshaping the future of transportation, with the promise of a cleaner and more sustainable automotive ecosystem.
