Electric vehicles in India are set to achieve the goal of sustainable mobility faster than ever before as we are now heralding a future where these vehicles are poised to constitute a significant proportion of new sales, estimated to range between 60 to 70 percent by 2030. This projection comes against the backdrop of an impressive surge in sales, exemplified by November 2023, which witnessed the retail of over 91,000 units. Notably, this marks the highest monthly sales figure after reducing FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidies in June.
Despite the subsidy reduction, the industry has thrived, boasting a remarkable 38% year-on-year increase. The cumulative figures for the first 11 months of 2023 stand at an impressive 783,047 units, signalling a trajectory that could lead the sector to achieve a record-breaking annual sales figure, potentially surpassing 850,000 units by the end of the calendar year 2023.
In June 2023, the electric two-wheeler industry faced a significant setback, with sales plummeting to an 11-month low of 46,066 units following the reduction in FAME subsidies. The market experienced a challenging period, marking a notable decline. The trend took a positive turn in October 2023 when sales figures surpassed all retail sales recorded in CY2022. This set the stage for an upswing in the subsequent month
November 2023 emerged as the most robust month for the electric two-wheeler industry in the current calendar year, showcasing a notable 19% increase compared to October. The segment’s share of total EV sales in India reached an impressive 56%, signifying a solid market position.
Cumulative sales for the first nine months of CY2023, totalling 783,047 units, represent a significant 38% increase over the same period in the previous year. With the potential for the Indian electric two-wheeler industry to exceed 850,000 units by the end of CY2023, a robust 35% year-on-year growth is anticipated. This positive outlook suggests a resilient and flourishing trajectory for the industry.
Speaking about the growth of the EV Market in 2023, Pritesh Mahajan, Co-Founder and CEO of Revamp Moto, shares, “As we witness the rapid growth in the electric two-wheeler sector, it becomes evident that consumers are not just making a choice for today but are investing in a sustainable and economic future. The surge in sales, particularly in the aftermath of subsidy reductions, underscores the changing dynamics of the market. At Revamp Moto, we believe that the long-term cost-effectiveness of electric vehicles, coupled with a concerted effort to expand charging infrastructure, is reshaping the landscape of mobility in India. This paradigm shift is not just about numbers; it’s about embracing a cleaner and greener tomorrow, one electric ride at a time.”
The e-two-wheeler industry’s commendable performance can be attributed to several factors, including the introduction of new products and the expansion of electric charging infrastructure, both in the private and public sectors. One of the key drivers behind the growing acceptance of electric vehicles is their long-term cost-effectiveness, attracting an increasing number of riders to transition to e-mobility.
Moreover, the sustained demand for last-mile deliveries in urban and rural areas has acted as a catalyst for the sales of cargo-transporting electric two-wheelers. Numerous electric vehicle manufacturers have reaped the rewards of bulk orders, indicative of a growing acceptance of electric vehicles in commercial applications.
The industry, however, faces uncertainties regarding the extension of the FAME subsidy beyond April 2024. This uncertainty has potentially accelerated purchases, both by individual electric vehicle buyers and fleet buyers. This trend could result in strong demand for electric vehicle original equipment manufacturers (OEMs) in the initial months of CY2024.
This evolving landscape of electric two-wheelers in India not only reflects substantial growth in sales but also signifies a changing perception among consumers and an expanding EV infrastructure, contributing to a wide acceptance of electric vehicles in the Indian market.