EV sales zoom past 1 million in 2023

Electric vehicle (EV) sales in India topped the 1 million mark in less than nine months in 2023, a milestone that took an entire year in 2022.

According to data from the Ministry of Road Transport and Highways’ Vahan Dashboard, 1,037,011 EVs were registered with regional transport offices till September 19, accounting for 6.4 per cent of the total automobile sales in the country this year.

The sales surge can be attributed to increased individual purchases as well as business-to-business (B2B) acquisitions by EV fleet operators, industry sources said.

Additionally, the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) initiative and the expansion of charging infrastructure have played a significant role in boosting EV adoption, they said.

Preetesh Singh, specialist CASE and alternate powertrains, NRI Consulting and Solutions, said the EV industry’s growth also stemmed from the recent launch of high-quality vehicles, besides the presence of tax incentives, improved financing options, and a robust swapping facility.

The two-wheeler segment accounted for 56 per cent of the EVs sold in 2023, followed by three-wheelers and passenger vehicles.

Throughout 2023, monthly EV sales have exceeded 100,000 units.

The peak was reached in May, with a record sale of 158,374 vehicles.

While the impact of FAME-II subsidy cuts was most pronounced in June, resulting in a 35 per cent decline with sales dropping to 102,447 units, the industry began to recover in July.

By August, with 126,741 units sold, sales had rebounded.

The surge in August sales represented a 23 per cent increase from the June levels.