New Delhi: India saw a massive year-on-year surge in the demand for electric vehicles, with retail sales of electric two-wheelers rising by 58 per cent, passenger vehicles by 130 per cent, three-wheelers by 82 per cent and commercial vehicles by 171 per cent in March 2023, shows data shared by the Federation of Automobile Dealers Associations (FADA).
According to a report by JMK Research, the EV segment as a whole grew by 157 per cent during FY23, to 1,180,597 units, from 458,746 units a year ago. Overall EV sales in March 2023 rose by 82 per cent from the March 2022 figure, the JMK report added.
“We could see a positive trend in the two-wheeler industry, but all these FAME subsidy issues and manufacturers not being clear about them, is a concern. We should have an absolutely clear policy, under which manufacturers know how much they can get and how to encash on the subsidy. Manufacturers also should abide by that policy, so they get a proper push,” said Manish Raj Singhania, president of FADA.
In the two-wheeler segment, sales increased from 54,400 units in March 2022 to 85,793 units in March 2023, based on FADA numbers. Among companies, a major gainer was TVS Motor, whose sales were up six-fold from 2,392 units in March 2022 to 16,768 units this year, taking the firm to the No. 2 slot. Ola Electric topped the sales chart with a 133 per cent rise in sales to 21,274 units. Ather Energy’s four-fold spike (12,076 units) took the company to the No. 3 slot. On the other hand, sales at Hero Electric and Okinawa dipped by 49 per cent and 46 per cent respectively.
“We are seeing legacy players coming up with a range of products in the EV two-wheeler industry. On the other hand, the EV passenger vehicle industry is still a distant dream. We have very few products in the offering for customers in the market. Prices are high compared to normal ICE PVs. So, prices should come down and more offerings should be there for the consumers to choose from,” Singhania added.
In the passenger vehicle segment, total sales increased to 8,566 units, up from 3,718 units in March last year. Tata Motors had a clear monopoly in the segment selling 7,137 units, more than doubling it from last year’s 3,444 units. Among three wheelers, Mahindra and Mahindra sales increased over three-fold to 3,538 units, up from 857 inits in March last year. YC Electric also sold 3,095 units, up 28 per cent compared to last year.
“Lot of things need to be sorted out in terms of battery, resale value of the products etc. In all these, the market needs to derive an understanding. About 95 per cent of the products are financed in the auto industry and if the confidence of the financier is not there on the product, it will be a deterrent to the EV industry,” he added.
