NEW DELHI: Calendar year 2022 turns out to be a significant year for electric vehicles (EVs) despite the industry witnessing a series of fire incidents at the beginning of the summer season. From SUVs to scooters, the sector was flooded with new launches and on the back of surging demand; the market for EVs grew three-fold in size.
According to data available at VAHAN portal, EV sales grew from 3.2 lakh units in 2021 to nearly 10 lakh in 2022, a growth of over 200%. With this rise in sales; penetration of battery-powered vehicles in overall auto sales also witnessed a big jump: 1.8% in 2021 to 4.7 in 2022. This growth can be attributed to a host of favorable factors. While a sharp jump in petrol prices forced a section of buyers to start thinking about the ‘alternative’, deep incentive offered by the centre and state government made it affordable for many. The fire incidents also reduced as soaring temperatures took a dip.
“Offerings of new-aged startups like Ola Electric, Okinawa, Hero Electric, and Ather, Ampere, Bounce Infinity, and Pure EV have been widely accepted by consumers on grounds of effectiveness, enhanced comfort & riding experience owing to best-in-class technology and flexible charging options,” said Sumit Chhazed, CEO and co-founder of OTO.
He added, “Such an accelerated demand would not have been possible without the support from the government - surging the FAME subsidies threefold, tax exemptions of up to Rs 1.5 Lakh if purchased through a loan, road tax and registration fees exemption etc.” As of December 9, nearly 7.47 lakh EVs were sold under FAME India Phase II, the government recently said.
Road minister Nitin Gadkari had recently said India had over 18 lakh EVs with Uttar Pradesh leading with 23% share. More than half of the EVs on road are three-wheelers, which are used for commercial operations, followed by about 8 lakh two-wheelers. While the electric-2W space continues to witness intense competition, the electric four-wheeler space was almost entirely dominated by Tata Motors.
Rising by leaps & bounds
EV Sales
2021: 3.2 lakh
2022: 10 lakh
EV Penetration in Overall Sales
2021: 1.8%
2022: 4.7%