EV Sales In India Record 50% Rise, Two-Three Wheelers Dominate Sales

Electric Vehicles Sales In India Record 50 Percent YoY Rise; 2-3 Wheelers Dominate Sales. Photo: Pexels

As the focus on a green future increases, electric vehicles have gradually become a part of vogue amid a proactive push by governments and several institutions to create awareness among the people. A study conducted by CareEdge Ratings shows that sales of Electric Vehicles registered a significant growth in CY23 as compared to CY22. The sale of EVs is 50 percent more in CY23 than in CY22. The total EV volume sold in CY23 was 1.53 million while those sold in CY22 stood at 1.02 million.

The growth in the sale of EVs is a ray of light amid the clouds as this has happened despite several hindrances to the expansion of electric vehicles in the country.

Interestingly, two-wheelers (2W) and three-wheelers (3W) dominated the sales of electric vehicles in India comprising 90-95 percent of total EVs sold across the country during CY23. With that, the share of electric passenger vehicles stood at 5%, while commercial vehicles occupied a small fraction of sold EVs.

In the span of two years, the overall EV share of autos has risen to 6.38 percent in CY23 from 1.75 percent in CY21. On growth turf, two-wheeler EVs and three-wheeler EVs recorded growth of 37% and 66%, respectively.

“The growth momentum is expected to continue in CY24, driven by the government’s increased focus on electrification at both the Central and state levels,” projects the CareEdge Ratings report. An increase in charging stations, a reduction in battery costs, and the development of new models are a few factors that are expected to continue to drive the demand for EVs, read the report.

But as of now, the challenges faced by the EV industry are insufficient EV charging infrastructure and concerns about battery capacity which might contribute to an increase in the prices.

The report also throws light on the scenario during CY24 adding that the industry is expected to surpass a sales volume of 2 million in CY24 amid favourable factors in the market. If we try to look at the global outlook, a report by DigiTimes projected that the sales of EVs in 2024 will continue to rise but the rise will be comparatively slower than 2023.