EV sales in India hit 1.16 million units in FY2023, race past 100,000 units six months in a row
Today, March 31, is the last day of fiscal year 2023 and sales of electric vehicles (EVs) in India have charged past the 100,000-units mark for the sixth month in a row. What’s more, cumulative 12-month sales have crossed the million milestone.
As per Vahan data, cumulative sales till the evening of March 30, 2023 were 11,65,057 units, hitting the million milestone for the first time in a fiscal. In CY2022, EV sales in India had clocked a total of 10,23,735 units, and accounted for 4.93% of total India Auto Inc vehicle sales of 20,752,305 units
FY2023’s 11,65,057 units (the number will increase with entry of single-day March 31 retail sales as well as sales data from the two states not included in Vahan) are a robust 154% year-on-year increase on FY2022’s 458,746 units and point to the surge in consumer demand for EVs, in the face of stiff petrol and diesel prices as well as CNG.
The charge of the EV brigade can be gleaned from the fact that sales have scaled a new high for a month in March 2023 – 124,289 units, beating the previous best of 121,389 units (see data table below). The monthly shift to six-figure sales began in festive October 2022 and has continued right till March 2023.
Two- and three-wheelers on a roll
Leading the charge are the two low-hanging fruit of the industry – two- and three-wheelers. Two-wheelers, the most affordable EV sub-segment, with 716,447 units saw YoY growth of 183% (FY2022: 252,539 units) and accounts for 61.5% of total EV sales in India.
Electric three-wheelers, across both passenger- and cargo-transporting model, sold a total of 397,429 units, up 47% YoY (FY2022: 188,447 units) and accounted for 34% of total EV sales in FY2023. Thus, combined two- and three-wheeler EV sales comprise an overwhelming 95% of the record EV industry sales (see data table above).
India EV growth story revs up
A quick look at Vahan-sourced 10-year EV retail sales data (detailed above) reveals that a total of 22,60,155 units or 2.26 million units have been sold in India since FY2014. Seventy-two percent – 16,23,709 units – of the decadal sales have come in the past two fiscal years, which indicates just how rapidly demand is accelerating for EVs in the country.
The shift from IC engine vehicles to EVs is underway in India, which has outlined EVs to account for 30% of its mobility requirements by 2030. This domestic industry momentum is being driven by the FAME scheme, state subsidies and a growing portfolio of products across vehicle sub-segments.
Growing consumer awareness about the need to use eco-friendly transport and the wallet-friendly nature of EV cost of ownership over the long run is proving to be a big catalyst to adoption of electric mobility.
Given the Union Budget 2023’s focus on this segment of the automobile industry, the increased allocation of the FAME II subsidy should help accelerate sales of EVs. Meanwhile, recognising the huge business potential, component manufacturers are fast upping the ante on localising EV parts, either through full ground-up development or through technology licences. This will lead to enhanced optimisation of costs and in turn EV affordability. All in all, a win-win scenario for the EV industry and consumers.