India’s electric vehicle industry has topped the 700,000-unit mark in the first half of 2023, Autocar Professional reports citing Vahan’s latest data.
Interestingly, the total sales of 721,971 units represent an impressive 73% of India EV Inc’s record sales in the entire year of 2022. In retrospect, the country achieved the one-million-mark for the first time last year, hitting 1,024,739 EV sales. This figure indicated a remarkable growth of 210% year-on-year.
Electric two- and three-wheelers drive sales, accounting for majority of market share
The growth in India’s EV sales in the first half of 2023 has been largely driven by electric two-wheelers and three-wheelers, the most affordable options in the market.
Electric two-wheelers contributed 60% of the total sales, selling 434,914 units in H1 2023. As per the data, Ola Electric led the segment with sales of 17,552 units and a market share of 38%. TVS Motor Co followed it with 7,791 iQube e-scooters sales in June.
Meanwhile, three-wheelers obtained a 34% share with 246,270 unit sales. In this segment, Mahindra Last Mile Mobility (MLMM) led with sales of 23,112 units in H1 2022. YC Electric Vehicles ranked second with 17,506 sales in the same period.
The other 5.31% market share went to electric cars and SUVs, with 38,359 units sold. Tata Motors led this sub-segment with 29,453 sales from January to June. MG Motor India landed second, selling 3,215, significantly lower than the market leader.
Commercial vehicles, including goods carriers and buses, accounted for 0.28% of the market share, totaling 2,079 units. Tata Motors also gained the top spot selling goods carriers with 418 units. BYD India followed it by a significant margin with 225 sales. Unsurprisingly, the Indian auto giant has once again led the electric bus sub-segment with sales of 250 units. PMI Electro Mobility Solutions followed it with 190 unit sales.
Notably, the cumulative EV sales of 721,921 units in the first half of 2023 already represent 73% of the record-breaking sales achieved in 2022. The market received a significant boost in May, with over 150,000 EVs sold during that month alone.
Price hikes affect two-wheeler sales, but overall market continues to mature
Despite the notable growth in the market, there was still a sharp decline of 56% in two-wheeler sales in June due to the reduction in the FAME II subsidy.
The subsidy reduction led to increased prices of e-scooters and e-motorcycles from June 1, resulting in electric two-wheeler sales hitting an 11-month low of 45,734 units in June. Despite the decline, the numbers indicate a maturing market as consumers purchased higher-priced e-two-wheelers.
In hindsight, June 2023 marked the ninth consecutive month EV sales in India exceeded 100,000 units. However, last month’s figures were the lowest of the nine months, with only 101,832 units sold.
Nonetheless, the EV market in India continues to demonstrate significant growth and resilience, with electric two- and three-wheelers driving the majority of sales.
See Also:
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The market progress aligns with the government’s goal of having EVs account for 30% of its new vehicle sales by 2030.
With the Indian government’s continued focus on promoting electric mobility and increasing consumer awareness about the benefits of EVs, the market’s future remains promising.
