Umair Gaines
India's electric vehicle (EV) market is rapidly evolving, with over 2.3 million EVs on the roads as of March 2023. The majority of these are two and three-wheelers, with more than 1.1 million vehicles each. India has set ambitious goals for EV adoption, aiming for 80 million EVs on the roads by 2030, which would represent 30% of private car sales. To support this growth, the country's EV battery market is projected to expand significantly, and the development of charging infrastructure is crucial. The Indian government has implemented initiatives like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, and the 'Make in India' initiative to encourage domestic EV production.
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What You'll Learn
- Electric vehicle sales in India increased by 174% YoY to 1,247,120 units in FY23
- Tata Motors is the top electric vehicle seller in India
- Electric three-wheelers are a rapidly growing segment in India
- The Indian government has implemented policies to incentivize domestic manufacturing of EVs and batteries
- Companies like Electrotherm and Hero Electric Vehicles are emerging players in India's electric two-wheeler segment
Electric vehicle sales in India increased by 174% YoY to 1,247,120 units in FY23
Electric vehicle sales in India have been witnessing a positive growth trend, with a significant increase of 174% year-on-year, resulting in 1,247,120 units sold in FY23. This surge in sales indicates a growing consumer demand for electric vehicles (EVs) in the country.
The data reveals that the E2W category, including two-wheeler electric scooters and motorcycles, held the largest share of the Indian EV market in FY23, accounting for 48.76% of total sales. Ola Electric dominated this segment with a 21.23% registration share, followed by TVS Motor Company and Bajaj Auto, showcasing the popularity of electric two-wheelers among Indian consumers.
The E3W category, encompassing three-wheeler passenger and cargo vehicles, also demonstrated impressive growth. Mahindra Electric, YC Electric Vehicle, and Saera Electric were the top players in this segment, with Mahindra Electric holding an 8.95% share. The E3W category marked a notable 127% year-on-year increase, surpassing 400,000 units in sales for the first time since FY16.
The E4W category, including four-wheeler passenger cars, experienced a substantial 151% year-on-year increase. Tata Motors, MG Motor, and BYD India were the leading manufacturers in this segment, with Tata Motors holding a significant 79.28% share. This growth reflects the increasing consumer interest in electric four-wheelers.
State-wise data shows that Uttar Pradesh led the way in EV sales, accounting for a 20.64% share of the total registered cumulative sales in FY23. Maharashtra and Delhi followed closely, with 10.15% and 8.85% shares, respectively, indicating the regional distribution of EV adoption across India.
The overall sales figures and category-wise growth indicate a promising future for the electric vehicle market in India. With consumer awareness, supportive government incentives, and an expanding EV ecosystem, the industry is poised for sustained growth in the coming years.
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Tata Motors is the top electric vehicle seller in India
Electric vehicle (EV) sales in India have been rapidly increasing. In the 2023 fiscal year, EV sales exceeded 100,000 units for six months in a row, reaching 1,171,944 units in total. This is a significant increase from the 458,746 units sold in 2022 and the 10,23,735 units sold in 2021.
Tata Motors' strong performance in the EV market can be attributed to its commitment to innovation and sustainability. The company has collaborated with various Tata Group entities through the Tata UniEVerse initiative to accelerate the transition to e-mobility. Tata Motors is working closely with Tata Auto Components to localize EV powertrains and battery packs, ensuring a more efficient and integrated supply chain. Additionally, their partnership with Tata Power, a leader in EV charging infrastructure, enhances the charging experience for customers by expanding public charging options and providing home chargers with their EVs.
Tata Motors' focus on customer satisfaction is evident through their try-before-you-buy approach. Customers can test drive their EVs for an hour, a day, or a weekend before making a purchase decision. This allows consumers to experience the benefits of Tata Motors' EVs firsthand, including their minimal running and maintenance expenses. The company's online purchasing option further adds to the convenience and accessibility of owning an electric vehicle.
Tata Motors' dominance in the Indian EV market is a testament to the company's successful strategy and commitment to sustainability. With their range of electric vehicles, they are leading the way toward a greener and more cost-effective future for India's automotive industry.
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Electric three-wheelers are a rapidly growing segment in India
Electric vehicles (EVs) are becoming increasingly popular in India, with sales hitting 1.17 million units in FY2023, surpassing 100,000 units for six consecutive months. This surge in demand for EVs is driven by steep petrol, diesel, and CNG prices. Within the EV market, three-wheelers are a rapidly growing segment.
Three-wheelers are incredibly popular in India, constituting a significant portion of the country's automotive market. India is the world's largest market for three-wheelers, with robust sales supporting both passenger and freight transportation. More than half of the global three-wheeler sales and production originate from India. The three-wheeler market in India is dominated by companies like Piaggio and Bajaj Auto, which introduced electric vehicles to their portfolios in 2023.
Electric three-wheelers are gaining traction in India due to their affordability, ease of use in congested urban areas, and the country's rapid urbanization. In 2023, sales of electric three-wheelers surpassed 580,000 units, a substantial increase from the previous year. This segment's growth is further propelled by government incentives aimed at reducing pollution levels.
The electric three-wheeler market in India is highly competitive, with numerous players offering a range of vehicles for passenger and cargo transportation. Mahindra Last Mile Mobility, a market leader, offers six EVs, including the Treo, Treo Yaari, and e-Alfa Mini for passengers, and the Zor Grand, Treo Zor, and e-Alfa for cargo. Other prominent companies in this segment include Ola Electric, Mahindra Electric, YC Electric Vehicle, and Saera Electric, each holding a significant market share.
The three-wheeler category in India, including electric and conventional vehicles, continues to thrive due to the lack of extensive public transportation infrastructure. Three-wheelers offer a convenient and affordable transportation option, particularly in crowded urban areas. This demand is expected to persist, with the global three-wheeler market revenue projected to reach USD 24,695.23 million in 2033, showcasing a CAGR of 10.48% from 2025 to 2033.
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The Indian government has implemented policies to incentivize domestic manufacturing of EVs and batteries
Electric vehicle (EV) sales in India have been increasing, with a 174% year-on-year increase from FY22 to FY23, reaching 1,171,944 units. The Indian government has recognized the potential of this market and implemented various policies to incentivize the domestic manufacturing of EVs and batteries.
One such policy is the National Electric Mobility Mission Plan (NEMMP), which includes the FAME India scheme—Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India. FAME India is a government subsidy program that started in 2015 and has helped support and incentivize the production and adoption of EVs in India. The scheme has had two phases so far, with Phase I running from 2015 to 2019 and allocating US$ 65.3 million to support 2.78 lakh electric and hybrid vehicles.
The Indian government has also introduced a battery swapping policy to enhance EV efficiency and reduce lengthy charging durations. This policy allows EV users to swap drained batteries with fully charged ones, improving the convenience and usability of EVs.
To further encourage domestic manufacturing, the government has outlined the 'Make in India' initiative, which aims for 100% local production of EVs. This initiative includes specific targets for different vehicle types to achieve 30% EV sales penetration by 2030. The government has also mandated a minimum investment of US$ 500.9 million in the EV manufacturing industry, with no upper limit, and offered customs duty exemptions to incentivize investment and production.
Additionally, the government has implemented policies to reduce the cost of EVs for consumers. For instance, the Goods and Services Tax (GST) on EVs has been lowered from 12% to 5%, and the GST on charging stations has been reduced from 18% to 5%. The government has also waived the road tax on EVs, making them more affordable for buyers.
These policies demonstrate the Indian government's commitment to incentivizing the domestic manufacturing of EVs and batteries, promoting green mobility, and supporting the growth of the EV industry in India.
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Companies like Electrotherm and Hero Electric Vehicles are emerging players in India's electric two-wheeler segment
Electric vehicle sales in India have been experiencing significant growth, with a 174% year-over-year increase from 2022 to 2023. This surge in demand has created opportunities for new players in the market, particularly in the electric two-wheeler segment. Companies like Electrotherm and Hero Electric Vehicles are at the forefront of this emerging sector.
Electrotherm (India) Limited has a diverse portfolio that includes electric scooters, motorcycles, and batteries. With a strong focus on sustainable development, the company leverages its expertise in "Power Electronics" and in-house research and development capabilities to create innovative, eco-friendly products. Electrotherm's commitment to affordability and accessibility has helped it gain a competitive edge, attracting thousands of customers since 2006. Their YoBykes brand aims to make high-quality electric vehicles available to everyone, and their established technical know-how and customer service further enhance their position in the market.
Hero Electric Vehicles Pvt. Ltd., another prominent player, offers a wide range of electric scooters and motorcycles. The Hero Electric scooter lineup in India includes popular models like the Optima CX, Photon, and Atria. The Optima CX and Atria are priced at ₹77,690, while the Photon, their most expensive scooter, is priced at ₹1,10,839. Hero Electric has made significant strides in the market, even outselling competitors like Okinawa in monthly registrations. However, some customers have reported issues with the range and battery performance of their scooters, as well as a lack of after-sales support.
Both Electrotherm and Hero Electric Vehicles are contributing to India's goal of reducing carbon emissions and promoting sustainable transportation. Their focus on affordability, innovation, and accessibility aligns with the country's efforts to accelerate the adoption of electric vehicles. With their commitment to research and development, these companies are well-positioned to drive the growth and evolution of India's electric two-wheeler segment, making a significant impact on the industry and the environment.
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Frequently asked questions
There were 1.17 million electric vehicles in India in 2023.
Electric vehicle sales in India in 2023 were 11,71,944 units.
The top-selling electric vehicles in India in 2023 were Tiago, Nexon and Tigor from Tata Motors, the MG ZS, and Mahindra XUV400.
Tata Motors sold the most electric vehicles in India in 2023, with a 72% market share.
