Friday, 17 May, 2024
By: Yash Gupte
The 10,15,196 EVs sold in CY2022 represent a significant 210 percent year-on-year increase over the 3,27,796 units sold in CY2021. Image Source: IANS
The electric vehicle market in India has come a long way from a sale of 7,772 units in 2015 to more than one million in 2022. The highest year-on-year growth in the sale of EVs in the country was recorded in 2016 at 531.22 percent.
According to the information provided to the Lok Sabha by Union Minister of State for Heavy Industries Krishan Pal Gujar, as per e-vahan portal of the Ministry of Road Transport and Highways, there has been an exponential rise in sale and registration of electric vehicles in India. In the year 2023 (till March 15, 2023), the total number of electric vehicles registered in India stands at 2,56,980. Also, the electric vehicle sales in India in the calendar year 2022 has brought cheers to the automobile industry in the country. The electric vehicle (EV) market has shown an impressive growth in the past year. The 10,15,196 EVs sold in CY2022 represent a significant 210 percent year-on-year increase over the 3,27,796 units sold in CY2021. The two and three-wheeler segments, both referred to as the "low-hanging fruits" of the EV industry, were responsible for the majority of the growth. It makes sense that they are the main drivers of EV sales because they are cheaper than the electric passenger cars or commercial vehicle segments.
In the pandemic year 2020, only 1,23,092 electric vehicles were sold in the country. As compared to 2020, the number of electric vehicles sold in the first quarter of CY2023 is much higher at 2,56,980. This shows that the market has been very favourable for electric vehicles post pandemic. The number tells that many people are going for electric vehicles post pandemic.
According to the Vahan portal of Ministry of Road Transport and Highways, the electric four-wheeler segment clocked cumulative sales of 37,792 units in 2022. The company with the largest portfolio of EVs, Tata Motors, sold 30,284 units and holds an 80 percent market share. With 3,390 vehicles, MG Motor India holds a 9 percent market share.
With sale of 622,337 units, electric two-wheelers account for 62.23 percent of total EV sales in India in 2022 and 4 percent of India’s overall two-wheeler market which recorded cumulative sales of 1,53,07,255 units. The top 10 (Original Equipment Manufacturers) OEMs – Ola Electric, Okinawa Autotech, Hero Electric, Ampere Vehicles, Ather Energy, TVS Motor Co, Bajaj Auto, Pur Energy, Revolt Intellicorp and Being India Energy – account for 550,562 units or an overwhelming 89 percent of total sales. The electric two-wheeler market was dominated by Ola Electric in 2022 with a sale of 108,130 units followed by Okinawa Autotech with a sale of 101,366 units. In February 2022, around 57,424 electric vehicles were sold in the country, this number increased exponentially in February 2023 as the total sale of EVs was recorded at 1,06,107. This shows that the sale of electric vehicles in India has nearly doubled in one year. The chart below takes a look at the sales of electric vehicles in the country since 2015.
Source: VAHAN Portal, Ministry of Road Transport and Highways
*2023- (January 01, 2023 to March 15, 2023)
The electric vehicle market in India has come a long way from a sale of 7,772 units in 2015 to more than one million in 2022. The highest year-on-year growth in the sale of EVs in the country was recorded in 2016 at 531.22 percent. The EV sales jumped from 7,772 in 2015 to 49,065 in 2016. The rise in product availability in the market, the high cost of petrol, diesel, and compressed natural gas, as well as state subsidies and incentives provided under FAME II scheme, are all factors that contributed to the domestic EV industry's sales growth in 2022. Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II), is a scheme launched by the Government of India to give a boost to development of Electric Vehicles. The Central Government has allocated a budget of Rs 10,000 crore for the second phase of this scheme. The scheme was launched to achieve the goals of National Electric Mobility Mission Plan (NEMMP). Phase I lasted from 2015 to 2019 and Phase II of FAME was launched in 2019.
Apart from the above mentioned schemes, The Government on September 15, 2021 approved the PLI Scheme for Automotive Sector with a budgetary outlay of Rs. 25,938 crore to support domestic manufacturing of vehicles. Electric vehicles are covered under this PLI scheme. With the popularity of electric vehicles (EVs) increasing in India, imports of lithium and lithium-ion increased by 56 percent year over year in 2022–23 (up to January). With a 5.8 percent share of the world's lithium reserves, India will become the world's seventh-largest producer following the recent discovery of 5.9 million tons of lithium reserves in Jammu and Kashmir. This will assist India in reducing its reliance on imports for this critical mineral.
This year’s Auto Expo was held in Greater Noida from January 11 to January 18. This year’s Auto Expo was different from the earlier ones due to the dominance of electric vehicles. The event was jam-packed with EV displays. The largest auto exhibition in India featured up to 16 new four-wheeled electric vehicles (EVs). Maruti opened the 2023 International Auto Exhibition, and with the eVX, the brand has finally made a firm commitment to electric mobility. The design of this idea, which has a 60kwh battery pack giving over 500km of range, is dominated by bold style and boxy SUV dimensions. Apart from Maruti Suzuki, many auto giants like Toyota, Tata, Kia, Lexus, MG and Hyundai displayed new EVs.
Though electric vehicle sales in India have crossed a mark of one million in 2022, there are few concerns which would haunt the future of EV sales in the country. According to Manu Sharma, spokesperson of the Society of Manufacturers of Electric Vehicles (SMEV), “A long-term policy with greater focus on sourcing, a strong supply chain for crucial raw materials such as rare earth metals, and country-level arrangements are the need of the hour to avoid overdependence on midstream suppliers such as China. If these aren't in place, the EV industry's growth plans could be impacted.” He further added that if the supply chain is disrupted due to Covid, there will be a shortage of raw material and semiconductors. But the numbers clearly indicate that the electric vehicles will be dominating the automobile market in near future.
