2022, which has been a record year of sales for India Auto Inc across vehicle segments, also saw demand for electric vehicles soar to 999,949 units. Growing eco-consciousness among buyers, incentives and wider product choice will be the drivers of the future EV growth story.
It's a robust growth story which can only get better. With cumulative sales of 999,949 units in calendar year 2022, India Auto Inc missed hitting the million-units milestone as per official data by a whisker – just 51 units. But that's not the full story.
This big number is as per retail data on the government of India’s Vahan portal on the evening of December 31 at 10pm, a couple of hours before the year turned into 2023. It’s likely that with a few new vehicle registrations, specific to CY2022, added to the overall tally a few days later due to the lag effect, the million EVs milestone could just have been surpassed.
Furthermore, it is also a fact that, as a reader pointed out, the Vahan portal data does not include the state of Telangana and sales data from the armed forces. Thus, given this real-world scenario, technically the overall cumulative sale of EVs across vehicle segments in CY2022 would have crossed the one-million mark in CY2022 in India, for the first time.
The electric vehicle (EV) industry has had a sterling year of growth. The 999,949 EVs sold in CY2022 constitute a notable 210% year-on-year increase on 2021’s 322,871 units. Most of the growth is thanks to the two- and three-wheeler segments, both popularly billed as the ‘low-hanging fruits’ of the EV industry. Given that they are more affordable compared to electric passenger vehicles or commercial vehicle segments, understandably they are the biggest contributors to EV sales.
Two-wheelers command 62% of India's EV market
At 622,337 units, electric two-wheelers account for 62.23% of total EV sales in India in 2022 and 4% of India’s overall two-wheeler market which recorded cumulative sales of 15.3 million two-wheelers (1,53,07,255 units).
Ola Electric with 108,130 units is the market leader, closely followed by Okinawa Autotech with 101,366 units – just 6,764 units behind. The top 10 OEMs – Ola Electric, Okinawa Autotech, Hero Electric, Ampere Vehicles, Ather Energy, TVS Motor Co, Bajaj Auto, Pur Energy, Revolt Intellicorp and Being India Energy – account for 550,562 units or an overwhelming 89% of total sales. Meanwhile, another 20-odd OEMs are engaged also engaged in a fierce fight for a slice of the action of India’s booming e-two-wheeler market.
Three’s company for green growth
Electric three-wheelers have been the other big growth driver for the EV industry and at 337,335 units retailed in CY2022, they account for 34% of total EV sales. YC Electric Vehicles with an estimated 27,814 units is the market leader in 2022 and has an 8.24% share of the market. Saera Electric Auto with 18,364 is at No. 2 position, while Mahindra Reva Electric with 15,485 units is the third-placed e-three-wheeler OEM in the overall rankings. Other notable performances have come from Dilli Electric Auto (13,148 units), Champion Polyplast (12,695), Mini Metro (10,457), Piaggio Vehicles (6,978) and Lectrix EV (6,978).
Electric PVs take 4% market share, Tata Motors rules
As per Vahan EV retail sales data for CY2022, the electric four-wheeler segment clocked cumulative sales of 37,792 units comprising 32,824 motor vehicles and 4,968 electric PVs. This means the electric four-wheeler segment accounts for a near 4% share of India’s overall EV market.
Tata Motors, the company with the biggest EV portfolio, has clocked 30,284 units and commands an 80% market share. MG Motor India, with 3,390 units, has a 9% market share.
EV industry to be on full charge in 2023
From a minuscule 2,443 units in CY2013, EV sales have risen to 999,849 units in CY2022, with the bulk of the sales coming in the past two years.
A deep dive into 10-year EV retail sales data reveals just how the once-nascent industry has grown and shows huge potential. The comprehensive data table below details the decadal growth from a
India is targeting EVs to account for 30% of its mobility requirements by 2030, driven by the FAME scheme, state subsidies and a larger portfolio of products across vehicle segments.
The domestic EV industry’s sales growth in 2022 can be attributed to an increase in the availability of products in the market, high petrol, diesel and CNG prices, state subsidies and sops offered under FAME II. It also helps that there is growing consumer awareness about the need to use eco-friendly transport. And, of course, the wallet-friendly nature of EV cost of ownership over the long run is a big catalyst.
Given the pace of growth, the EV industry can be expected to notch consistent, if not rapid, progress in the new year. Some challenges remain in the form of inadequate charging infrastructure and high initial EV prices, which is directly related to the battery cost. Nevertheless, with OEMs’ sharpened focus on localisation with a view to reduce costs and enhance affordability, and battery prices expected to reduce gradually, there is a belief that things can only get better for this form of eco-friendly mobility.
What also augurs well is that a number of states, including Delhi, Maharashtra, Andhra Pradesh, Bihar, Chandigarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Odisha, Meghalaya Punjab, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand have rolled out EV-friendly policies, which should help the industry grow at a faster pace.
Stay plugged into this exciting industry segment in the new year as we bring you the very latest updates and incisive analyses.
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