EV sales in India surpassed the 1 million mark in FY2023
The year FY2023 has seen an overwhelming response for EV sales in India. EV sales in the country surpassed the 1 million mark in a year for the first time. While total EV sales were just above 4.5 lakh units in FY2022, the same reached the mark of over 12.4 lakh units in FY2023*, registering a growth of 172% over the previous year.
Source: Vahan Dashboard, Telangana data, JMK Research
The strong growth in EV sales has been led by two categories, the electric two (E2W) and three wheelers (E3W). Together, these two categories accounted for ~96% of overall electric vehicle (EV) sales during the year. The E2Ws, the most affordable EV segment witnessed total sales of 7,74,614 units in FY2023, compared to only 2,69,138 units in FY2022, recording a growth of 188% over the previous year. Ola Electric with over 1,50,000 sales and Hero Electric with sales of over 97,000 units were the top two E2W OEMs for FY2023. Okinawa, TVS Motor and Ampere Vehicles were close followers.
Source: Vahan Dashboard, Telangana data, JMK Research
For E3Ws, total sales for FY2023 stood at 4,07,099 units, against sales of 1,79,706 units in FY2022, registering a y-o-y increase of 127% in sales. The market for E3Ws in India is fragmented and Mahindra (35,675 units) and YC Electric (29,902 units) are the market leaders in the E3W segment. These are closely followed by Saera Electric, Dilli Electric and Champion Polyplast.
Source: Vahan Dashboard, Telangana data, JMK Research
The E-Cars/E4W segment registered total sales of 58,356 units in FY2023, compared to sales of 21,596 units in FY2022. This amounted to a growth of 170% over the previous year. Tata Motors is the market leader with 80% market share in the segment with sales of 47,006 units in FY2023. It is followed by MG Motor and BYD India with sales of 5,657 and 1,296 units respectively for the year.
Source: Vahan Dashboard, Telangana data, JMK Research
In the E-Bus segment, the total sales recorded for FY2023 were 1,913 units, up from 1,186 units in FY2022. This amounted to a growth of 61% in sales over prior year. PMI Electro Mobility and Olectra together accounted for over 50% market share with sales of 604 and 444 units respectively. These were followed by Switch Mobility/Ashok Leyland, JBM Auto and Tata Motors.
Source: Vahan Dashboard, Telangana data, JMK Research
The strong momentum for EV sales witnessed in FY2023 has been fueled by multiple factors including the FAME scheme, state subsidies and a growing portfolio of products across vehicle segments. The EV industry’s sales growth can also be attributed to an increase in the choice of products available to customers, and rising petrol, diesel and CNG prices. Growing consumer awareness about the need to use eco-friendly transport, tightening of safety battery norms by the government, and lower cost of ownership of EVs over ICE vehicles, are other factors contributing to the increasing sales.
Going forward, with increased allocation of the FAME II subsidy under Union Budget for FY2024, the EV sector should witness further growth in the business. With the high business potential, component manufacturers for EV are also aiming for more localization of EV parts. This in turn will lead to optimization of costs and EV affordability for the customers.
*EV sales for FY2023 include Telangana sales up to February 2023 only