Date: July 6, 2023
In a remarkable development for India’s electric vehicle (EV) industry, the second quarter of 2023 witnessed a staggering 66% year-on-year surge in EV sales, with a total of 371,340 units sold. The surge in EV sales can be attributed to several factors, including government incentives, improved charging infrastructure, and the introduction of new and affordable electric vehicle models. The Indian government has been actively promoting the adoption of electric vehicles, offering subsidies, tax benefits, and easier financing options to encourage consumers to switch to electric mobility.
In comparison to the 349,676 units sold in the preceding quarter, sales climbed by 6%. According to information provided by the Ministry of Road Transport and Highways through its Vahan Dashboard, EV sales made up 7.2% of total auto sales. As of June 2023, there were over 2.4 million registered EVs in India.
The market is witnessing a surge in demand for electric two-wheelers, which comprise a substantial portion of the total EV sales. The affordability and practicality of electric scooters and motorcycles have made them a popular choice among urban commuters, particularly in densely populated cities.
Nearly 59% (217,998) of the total number of EVs sold during the quarter were two-wheelers. Electric three-wheelers made up over a third (130,662) of all EVs sold during the quarter. With 18,917 units sold, electric four-wheelers (cars) made about 5% of all sales.
The encouraging sales figures have not only propelled the electric vehicle market but have also given a boost to local EV manufacturers and startups. The demand surge has opened up new avenues for investment and innovation, attracting both domestic and international players to invest in India’s burgeoning EV sector.