KOCHI: Market statistics show that Kerala has moved up to second spot in the sale of electric four-wheelers in the first quarter of financial year (FY) 2024-25, behind Maharashtra. And industry insiders say it does not appear to be stopping there. If anything, Kerala is fast emerging as India’s biggest market for EVs.
While Maharashtra sold 3,356 four-wheeler EV units during the period, Kerala and Karnataka sold 2,803 and 2,779 units respectively. Experts cite various factors behind the spike in EV sales.
Recently, in an interview to a TV channel, Vivek Srivatsa, chief commercial officer of TATA.ev, said that Kerala is one of the biggest markets in the EV sector in India, has good infrastructure and the people are progressive. He had said that what Kerala thinks today, the nation thinks of after two years. In a LinkedIn post Minister for Industries P Rajeeve said Srivatsa’s statement underscored the mindset and innovative spirit of Keralites. But what has led to this big change?
According to Raman M, cofounder of chargeMOD, a Kozhikode-based EV startup, adequate charging facilities and high purchasing capacity are playing a huge role in the increase in EV sales. “Keralites have far more exposure to innovations and new tech because of their education. Even school students know about EVs.”
According to the data with the EVM group, compared to 2023, the sale of EVs in the company’s showroom has registered a significant increase. “In 2023, 853 EV units were sold. However, in 2024, till July, the sales touched 1,286,” says Noble Jacob M, vice president of projects, EVM.
While four-wheeler sales have made the most impact, two-wheeler sales are also picking up, he says.
“The reason is that the upgrading of two-wheelers, in terms of battery capacity and the range of travel, was done only recently. But with the arrival of e-two-wheelers (e-2Ws) that could travel 100km and return with a single charging, the number of buyers for e-2Ws has increased,” Noble points out.
Adopting a new form of energy has become a thing among Keralites, with TATA models moving the most. Painting a picture of the changing scenario, Noble says, “EVM began dabbling in EV towards the middle of 2020. Then we had just one EV brand. Four years on, we are selling around 10 brands in our showrooms.”
He attributes the EV boom to an organic growth. “It is not pre-planned,” he adds.
Minister Rajeeve also highlighted the reasons behind the increasing number of EVs in the state, attributed it to the state’s commitment to sustainable and innovative solutions.
“We are dedicated to fostering growth and development in the EV industry,” Rajeeve said.
Another point that makes Kerala a big EV market, as highlighted by Raman, is that there is no rural-urban divide in the state. Agreeing to that, Najeem M Illyas, CEO of Twoncraft Technologies says, “In most of the Indian states, the major cities are development-focused and advanced. But when we go to their villages, they seem to be 25 years behind Kerala.”
He says the Kerala government is offering several incentives to promote EV adoption.
“Also, the road tax for EVs has been reduced by 50%. This makes EVs more affordable. The state also provides a 20% capital subsidy on new EV-manufacturing units. This encourages the establishment and growth of EV-manufacturing facilities within the state,” Najeem says.
Another plus is the increasing number of charging stations.
“As of now, we have a network of 2,300 plus charging stations,” points out Raman, of chargeMOD.