The Scope of EVs in India
The Indian automobile industry, currently the 3rd largest in the world, is poised for a tectonic shift, driven in part by the rapid growth of electric vehicles (EVs). EVs are becoming increasingly popular in India, thanks to a number of factors, including the increasing awareness of the environmental benefits of EVs, the declining cost of EV batteries, and the growing availability of EV charging infrastructure.
For instance, a recent survey shows that between 2021 and 2022, the number of EVs sold in India jumped by a whopping 210 percent. Likewise, according to the Economic Survey of 2023, the country’s yearly sale of electric vehicles will touch the 10 million threshold by 2030.
Two-wheelers outnumber four-wheelers on Indian roads by a wide margin. This is due to several factors, including affordability, convenience, and India’s traffic conditions. Electric two-wheelers (E2Ws) have been particularly popular in India, and there is significant room for their growth in the future.
Number of two-wheelers on the road: Two-wheelers are the most popular mode of transportation in India, outnumbering four-wheelers by a wide margin. Two-wheel EVs are the fastest-growing segment of the Indian automobile industry, with sales increasing from 2,000 in 2013 to 600,000 in 2022.
Sales of two-wheelers: In the financial year 2023, India’s electric vehicle industry sold one million units, with the two-wheeler segment leading the way at 62%. The recorded sales were of 1,152,021 electric vehicles, including, e-cars, e-buses, e-three-wheelers, and e-two-wheelers.
Adoption of two-wheelers: The adoption of two-wheelers, including electric two wheelers (E2Ws), is higher in India due to their affordability compared to four-wheelers. Electric two-wheelers are more accessible to the middle-class population, making them a preferred choice for Indian consumers.
Scope for two-wheelers: The Indian government’s initiatives to enhance e-mobility in the country, such as the FAME II policy, are fueling the growth of the two-wheeler EV market. Rising traffic congestion on Indian roads is also influencing the populace to adopt micro-mobility solutions, further driving the demand for two-wheelers.
Current State of Electric Vehicles in India
In India, electric vehicles are relatively new. Currently, EVs account for just 1 percent of the nation’s vehicle density. However, robust and fast-paced growth has been recorded since 2021, and the country is taking long strides in becoming an EV hub.
As of August 2022, around 1,392,000 electric vehicles occupied Indian roads, with the majority being three-wheelers. In addition, a recent Economic Times survey also reveals that 90 percent of car owners are willing to switch to electric vehicles if the proper infrastructure is provided. The Indian government’s Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles policies aim to increase EV penetration to 30 percent by 2030.
As of March 2023, India had a total of over 2.3 million electric vehicles (EVs) on its roads, with a significant majority being two and three-wheelers. Electric two-wheelers (E2Ws) outnumber four-wheelers in India, indicating a high adoption rate in this segment. The Indian EV market has a presence of 380 electric vehicle manufacturers, which contributes to its growth.
In the three-wheeler segment, there are approximately 300 electric three-wheeler companies operating in India, with many of them involved in the two-wheeler sector as well. Uttar Pradesh leads the way in the three-wheeler segment, while Karnataka and Maharashtra take the lead in the two-wheeler and four-wheeler sectors, respectively.
Statistics on the adoption of EVs in India
The robust and swift adoption of electric vehicles in India would benefit both the common citizens and the government.
- More than 90% of India’s 2.3 million EVs are two-wheelers, making it one of the fastest-growing markets.
- India sold 277,910 electric two-wheelers between April and September of 2022, a 404% increase over the same time the previous year when 55,147 units were sold.
- H1FY 2022-23 saw 18,142 electric three-wheelers sold, up 268%.
- EV car models increased to 500 in 2022, more than quadruple the amount in 2018.
Conclusion
So, there you have it—a brief overview of the potential for electric vehicles to grow in India. The outlook for the coming years is positive, and we can be hopeful that EVs will become commonplace in India in the next decade or so.
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