E-scooters drive EV sales to record 1 mn units in FY23
EV sales in India rose 153% in FY23 from the previous year to 1.15 million units, surpassing the cumulative 1.09 million sales until the previous year
India’s electric vehicle sales, including two-wheelers, surpassed one million units in FY23, propelled by government incentives and robust production by automakers, marking a significant stride towards sustainable transportation.
Electric scooters, which tripled in sales in FY23, accounted for the bulk of the industry’s volumes, with sales climbing 30% in March from the preceding month.
Interestingly, EV sales in India rose 153% in FY23 from the previous year to 1.15 million units, surpassing the cumulative 1.09 million sales until the previous year. All segments of EVs, including passenger vehicles, three-wheelers and two-wheelers, more than doubled sales, while the e-bus segment saw a 60% increase to 1,904 units in FY23 from 1,186 units last year, VAHAN vehicle registration data showed.
Electric two-wheelers accounted for 62% of the industry’s total sales at 727,000 units, followed by electric three-wheelers at 34%, with 401,000 units and electric passenger vehicles contributing 4% or 47,217 units in FY23, data released by EV industry body SMEV (Society of Manufacturers of Electric Vehicles) showed on Monday.
The government’s VAHAN portal, which captures vehicle registration data and is used by industry bodies to track retail sales, does not take into account sales of low-speed electric two and three-wheelers (with maximum speeds capped off at 25 km/hour) as they do not require to be registered under the Central Motor Vehicle Rules. According to SMEV, 120,000 low-speed electric cycles and 285,443 low-speed electric rickshaws were sold in the country in FY23 (in addition to the 1.15 million).
While impressive, the growth rate of the EV industry in India still falls short of NITI Aayog’s ambitious target of achieving 80% penetration in two-wheelers and 30% in private cars by 2030.
As of the end of FY23, electric two-wheelers make up only 4.6% of the overall two-wheeler market, up from 2% the previous year.
Allegations about fraudulent subsidy claims and concerns about quality issues related to localization stagnated EV sales after the festive season last year. However, March’s strong finish offers hopes for strong growth in the current fiscal year.
“While all the earlier (EV-related schemes since 2015 had a negligible effect on EV adoption, the revised FAME-2 in late 2022 had a dramatic effect on E2W (electric two-wheeler) adoption as it decreased their prices by around 35%. This started attracting the component supply chain that had earlier shunned anything to do with electric two-wheelers because of extremely low volumes. It was only in late 2021 that suppliers started queuing up to show their eagerness to develop EV components. It took most of these suppliers 12 to 18 months, the usual time that it takes to localize, and now most of them have started setting up sufficient capacities," said Sohinder Singh Gill, director-general of SMEV. “With only 5% adoption in FY23 and the short-term goal of 30% and the EV mission of 80% adoption by 2030 looks more like a mirage".
The EV industry has made representations to the government to extend the FAME-II incentives beyond FY24.
