India (Commonwealth) _ As per a research firm Counterpoint, state subsidies are projected to propel demand for electric vehicles in India, which is expected to climb by 66% this year after almost tripling in 2023 as the nation’s supporting infrastructure is developed.
The sharp increase in sales coincides with a slowdown in EV growth in other important countries, like China and the United States. According to the research, EVs are anticipated to account for over one-third of India’s personal car industry by 2030.
Tata Motors, a homegrown automaker, dominates India’s tiny but expanding EV industry, opens new tab. In 2023, 2% of all cars sold were electric versions. By 2030, the government wants to reach 30%. In a move viewed as a victory for global automakers, particularly Tesla, the Indian government reduced EV import levies on a few models last month provided automakers agreed to invest at least $500 million and begin local production within three years.
According to a Thursday Reuters story, Tesla has started manufacturing right-hand drive vehicles at its German facility, which it plans to sell to India later this year. The Vietnamese carmaker VinFast, opens new tab, also intends to invest $2 billion in the nation and started building a factory in Tamil Nadu, a state in the south, in February.
According to the Counterpoint analysis, Tata Motors owned more than two-thirds of the nation’s EV market last year, but lost ground to Mahindra & Mahindra, opens new tab, and Chinese carmaker BYD, opens new tab. As a result, the Federal Aviation Administration set a production cap. Mahindra & Mahindra sold roughly 2,500% more electric vehicles last year, yet they only had one model—the all-electric SUV XUV400.
With just two models in its India lineup—the e6 MPV and Atto 3 SUV—BYD also made a major impression in the area last year, posting an increase in EV sales of over 1,500% in the nation.
In a statement, a government trade official from India stated that the nation intends to boost its EV strategy by enticing investors from South Korea and Germany and by putting in place laws that would support the EV sector in India. Following continued discussions regarding constructing a Tesla plant in the nation, Prime Minister Narendra Modi and Tesla CEO Elon Musk made this declaration. Electric cars will probably still only contribute slightly to India’s vehicle fleet’s electrification, even if this plan is implemented.
As seen by our figure, which is derived from official statistics compiled by Clean Mobility Shift from the Vahan Dashboard, in 2023 there were only 72,930 newly registered four-wheeled electric cars in India. This is nearly twice as many as in 2022, although the South Asian country’s transition to e-mobility is mostly concentrated on two-wheelers, such as mopeds, as well as e-rickshaws and other three-wheelers, which accounted for 56 and 38 percent of all EV sales in the nation last year.
In 2023, the market share of electric cars was 6.3%, a significant rise from the little less than 1% pre-pandemic levels. It’s unclear if the increase in 2023—which was supported by almost $600 million in government subsidies under the FAME-II program—will continue into 2023, per TechCrunch reporting. A thirty percent market share for electric vehicles by 2030 is the current government goal.
Globally speaking, China continues to lead the charge in the continuous effort to electrify the fleet. According to Clean Technica statistics, 22% of all new automobiles sold in the East Asian nation in 2022 were electric vehicles. When plug-in hybrids were taken into account, the EV market share in that year was 30%. In Europe, battery electric vehicles accounted for just 14% of the market, while electric vehicles accounted for 23% of all newly registered vehicles.
The Federation of Automobile Dealers’ Association (FADA) released figures on Tuesday showing that sales of electric vehicles in India increased by 49.25 percent year over year to 15,29,947 units in 2023.
According to the data, the electric vehicle (EV) sector reported a total sales of 10, 25,063 units in 2022.
According to the report, two-wheeler sales increased by 36.09 percent to 8, 59,376 units in the just ended year from 6, 31,464 units in 2022. Sales of e-three-wheelers increased 65.23 percent in 2022 compared to 2022, when 3, 52,710 units were sold. From 2,649 cars sold in the previous year to 5,673 units in 2023, e-commercial vehicle sales increased by 114.16 percent annually. Sales of electric passenger cars increased by 114.71% to 82,105 units.
