Official data shows that electric vehicles (EVs) accounted for more than 6% of vehicle sales in India in 2023, with electric two-wheelers (E2Ws) constituting over half of the market.
Citing data from Vahan, Mercom reported that India saw an annual sales growth of 50% in 2023 in EVs, reaching 1.5 million units. About 56% of the EV sales came from E2Ws, and 38% were electric three-wheelers (E3Ws). Electric four-wheelers (E4Ws) accounted for 5% of total four-wheeler sales in India during the period.
Ola Electric, TVS Motor, and Ather Energy were the top E2W vendors in 2023, accounting for nearly 60% of India's E2W market. India's E3W market, led by YC Electric, Mahindra & Mahindra, and Saera Electric, was relatively fragmented with a much lower market concentration rate. Regarding the E4W market, Tata saw its market share continue to drop, underscoring the dynamic E4W market, where competitors at home and abroad are eyeing the rising market opportunities.
Despite a double-digit rise in EV sales from a year ago, the growth rate for 2023 was much lower than the previous two years, when India recorded a triple-digit rise in EV sales. TechCrunch reported that the slower growth could be attributed to India's cut in the flagship incentive scheme in 2023, FAME II, which impacted E2W sales significantly.
Sandiip Bhammer, founder and co-managing partner at Green Frontier Capital, told TechCrunch that he was optimistic about the commercial market, a segment less prone to be impacted by subsidy changes.
Meanwhile, CNBCTV18 reported that India is drafting the FAME II, in which India may introduce a 50% domestic value addition requirement to replace the Phased Manufacturing Programme, which imposed customs duty on imported vehicles and parts to promote the development of a local manufacturing ecosystem for EVs.
