Electric vehicle enthusiasts in India have welcomed electric vehicles with open arms, as the recent report by the Ministry of Power shows that over 20 lakh electric cars have been sold in the country in just six years of EV adoption. Electric vehicle sales in India are on the rise after the launch of friendly GOI policies and subsidies.
Indian EV sector witnessed a growth of 200% in electric vehicle sales in 2022 compared to 2021 by selling 1 Lakh units. With 57,447 automobiles registered in the first month of the year, 2023 promises to be an even better year for the Indian EV sector.
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The Union Minister of Power, RK Singh announced the yearly data on electric vehicle sales in India as of January 21, 2023, published in the E-Vahan portal. According to the e-vahan portal of India, there are 2,040,624 units of electric vehicles registered in India as of January 31, 2023.
The exponential growth in electric vehicle sales in India is mainly aided by the rapid expansion of the electric three-wheeler market from 108,000 units in 2018 to 338,000 units in 2022, and the two-wheeler market increased from 16,943 units in 2018 to 628,000 units last year.
With an estimated 2 million sales by the end of 2023, EVs are expected to account for 5.7% of total yearly automobile sales. It is estimated that the electric two-wheeler market will grow by 49% annually between 2023 and 2030, with over 10 million EVs on road by 2020. This exponential growth indicates the growing demand for eco-friendly and sustainable mobility.
The two biggest players in the Indian electric vehicle market, Ola Electric, and Tata Motors are leading the two- and four-wheeler segments. Tata Motors is leading the electric car market in sales with a market share of over 90% in 2023. In the two-wheeler segment, CEEF reported that Ola electric received 60,000 bookings in January 2023, and already delivered 18,606 electric scooters this month.
Government’s support
Friendly Government subsidies and policies majorly aided the exponential growth of electric vehicles in India over the years. GOI is on a mission to complete the 30% EV penetration goal in the nation before 2030 in India.
Several State and central electric vehicle policies have been launched so far to incentivize electric vehicle manufacturers and buyers. Buyers get subsidies per kilowatt of their electric vehicle vehicles, whereas the manufacturers are supported by lower interest rates.
Tax Incentives
The government offers tax incentives to manufacturers and buyers on the cost of buying electric vehicles, including reduced tariffs and GST rates in India.
Infrastructure development
The government is working with several CPOs to build electric vehicle charging stations across India to support the growth of electric vehicles in the nation.
Procurement Tenders
The government is using its purchasing power to drive sales of EVs through tenders to procure EVs for government use by deploying electric cars and electric buses in their fleet.
Research and Development
The government is investing in the R&D of electric vehicles in India to support the growth of the EV industry in India under the Make in India scheme.
Budget 2023 for Electric Vehicles
While presenting the Budget 2023, Finance Minister, Nirmala Sitharaman proposed to reduce tariffs on the import of capital goods used to produce lithium-ion batteries. This is likely to reduce the cost of Llithium-Ion batteries in India, further lowering the cost of electric vehicles.
RK Singh, Minister of Power announced that the Bureau of Energy Efficiency (BEE) has prepared action plans for the installation of public charging stations in 9 major cities. By 2030, they aim to have a total of 46,397 public charging stations in these cities in phase 1.
With the continued growth of electric vehicle sales in India and the government’s efforts to promote electric vehicles, 2023 is expected to be an even brighter year for the country’s electric vehicle industry. Governments continue to be pro-EV as more and more people become interested in EVs Measures The electric vehicle sales market in India is sure to continue its upward trend.
In conclusion, the rapid growth in electric car sales in India is a positive sign for both the automotive industry and the environment. As car enthusiasts seek out new and exciting ways to hit the road, electric cars are poised to become the vehicle of choice for the eco-conscious and tech-savvy.
With the current growth of electric vehicles in India and the GOI’s support, 2023 can be expected to be an even better year for the electric vehicle sector with estimated sales of 20 million EVs this year.
In conclusion, the rapid growth in electric car sales in India is a positive sign for both the Indian EV industry and the environment.
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