EV sales in India surpass 1 million in FY23

The auto industry sold 1,152,021 electric vehicles, including buses, cars, three-wheelers, and two-wheelers

April 11, 2023

Two-wheelers represent the majority of electric vehicle sales in the country

The revised FAME II had a significant impact on the adoption of electric two-wheelers

The revision has also led to an increase in the supply chain of components for electric two-wheelers

Most suppliers had taken 12-18 months to localize and many had now established sufficient capacities

Sales of electric vehicles in India exceeded one million for the first time in FY23, according to the Society of Manufacturers of Electric Vehicles (SMEV). 

However, the adoption of green personal mobility options in the two-wheeler sector lagged significantly behind the targets set by the apex policy platform, the Niti Aayog. SMEV attributed the shortfall in achieving targets to the lack of subsidy payments following a question mark on the quantum of localization. The data from SMEV showed that the industry sold 1,152,021 electric vehicles, including buses, cars, three-wheelers, and two-wheelers. 

Two-wheelers represent the majority of electric vehicle sales in the country. However, the withholding of more than the INR 1200 crore subsidy due to the delay in the localization affected sales of electric two-wheelers in the local market.

Experts stated that the revised FAME II had a significant impact on the adoption of electric two-wheelers, reducing vehicle prices by around 35%. They further mentioned that this had led to an increase in the supply chain of components for electric two-wheelers, which had previously been avoided due to low volumes. 

According to experts, most suppliers had taken 12-18 months to localize and many had now established sufficient capacities.

Source: Economic Times

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