According to the Society of Manufacturers of Electric Vehicles (SMEV) sales of electric vehicles (EVs) in India will increase by 45 percent in 2009-10. Total sales are estimated to touch 160,000 units, compared to 110,000 units in the last fiscal. The overwhelming majority of EVs sold in India are two-wheelers.

Due to the lack of consumer finance, two- wheeler sales had come under severe pressure in the last few months. However, electric two-wheelers grew strongly, albeit from a lower base.

EV popularity is being driven by their low-running costs compared to other two-wheelers.

According to industry estimates, users having a 60km daily commute can end up saving Rs.12, 000 a year, even including the replacement cost of the batteries.

However, according to the SMEV, the growth in the sector can be even higher provided there is support from the government. This would ensure that the Indian electric vehicle industry becomes as competitive as those in other countries like China.

At present the regulatory norms in the country are such that batteries or other parts, if imported, attract high duties. Another area of focus for the government is to support and encourage research and development activities in the electric vehicle sector, which would further drive its growth.