EV sales in India up by 55.2 per cent with two wheelers leading the race: FADA

4 months ago | 44 Views

Electric vehicle sales in July grew impressively by 55.2 per cent to 1,79,038 units year on year, as per data by Federation of Automobile Dealers' Association. This was mainly on the back of the exponential growth in the sales of electric two-wheelers which were up by 96 per cent.

In July 2023, the total units sold of electric vehicles stood at 1,16,221. The e-two-wheeler segment registered an excellent gain during the period under consideration, with sales jumping to 1,07,016 units from 54,616 units in the same month the previous year, marking a 95.94 per cent increase. This increase seems to be due to increasing consumer preference for electric mobility solutions, especially in the two-wheeler segment.

Passenger vehicle sales decline

Contrary to the increasing trend in the electric two wheeler segment, electric passenger vehicle sales went down marginally by 2.92 per cent to 7,541 units in July from 7,768 units in the same month last year.

With this, the electric passenger vehicle segment retains a market share of 2.4 per cent in the overall passenger vehicle segment.

Industry insights and future outlook

Manish Raj Singhania, President, FADA stated that the electric two-wheeler segment saw a market share of 7.4 per cent in the overall two wheeler market, for the month of July 2024.

He said, “The increased market share in the 2W and 3W EV segments for July 2024, with YoY growth rates of 95.94 per cent and 18.18 per cent, respectively, and a market share of 7.4 per cent and 57.6 per cent, respectively, for the month is a clear indication of the growing acceptance and demand for electric vehicles in India."

He further mentioned that attractive discounts and an expectation at the end of the Electric Mobility Promotion Scheme boosted sales significantly.

Extension of the EMPS scheme

According to an earlier announcement, the Ministry of Heavy Industries extended the EMPS effective date from April 1, 2024, to July 31, 2024, and now further to September 30. The outlay of the scheme has been increased from ₹500 crore to ₹778 crore by the Ministry for hastening EV adoption in the country.