EV industry records 155% growth sold more than a million units in FY2023

In the fiscal year 2023, the electric vehicle (EV) industry in India witnessed a remarkable surge in demand, recording a growth of 155% year-on-year (YoY) compared to FY2022. The total number of EVs sold during the fiscal year has crossed the 1 million mark for the first time, reaching 11,71,944 units by the end of March 31, 2023, according to Vahan data. This surge in demand can be attributed to the increasing petrol and diesel prices, as well as the demand for cleaner modes of transportation.

The sales of EVs in India have been on the rise for the past six months, with over 100,000 units sold each month. In March 2023, the sales reached an all-time high of 131,175 units, beating the previous record of 121,389 units in November 2022. The sales of EVs have remained consistently high since the festive season of October 2022.

EV SALES IN INDIA SINCE FY2014

| Fiscal | Units sold | YOY growth (%) ||--------|:----------:|:--------------:|| FY2023 | 11.71,944 | 155% || FY2022 | 4,58,746 | 222% || FY2021 | 1,42,314 | -18% || FY2020 | 1,73,545 | 18% || FY2019 | 1,46,938 | 52% || FY2018 | 96,512 | 73% || FY2017 | 55,871 | 245% || FY2016 | 16,198 | 590% || FY2015 | 2,347 | -11% || FY2014 | 2,627 | || Total | 22,67,042 | |

The two most affordable segments of the EV industry, two-wheelers and three-wheelers, have contributed significantly to the surge in demand. The sales of two-wheelers grew by 185% YoY, with 720,733 units sold in FY2023, while the sales of three-wheelers grew by 47% YoY, with a total of 399,540 units sold. Combined, the sales of two- and three-wheelers account for 95% of the total EV sales in India, with 61.5% and 34% share, respectively.

The demand for electric cars has also grown by 125% over FY2022, although they account for only a small percentage of the total EV sales. Overall, the EV industry in India is witnessing a robust growth trend, with the surge in demand for cleaner modes of transportation expected to continue in the coming years.

EV SALES in Each Segment FY2023

| Segment | Units ||:------------:|:---------:|| Two-wheelers | 7,20,733 || Three-wheelers | 3,99,540 || pvs (LMVs) | 39.562 || LPVS | 7,045 || Buses | 1.857 || HGVs | 193 || LGVS | 592 || Others | 2,422 || Total | 11 71 944 |

Electric 2-wheelers have 185% growth (720,733 units)

In the fiscal year 2023, the electric two-wheeler industry in India witnessed a significant YoY growth of 185%, selling 720,733 units compared to 252,543 units in FY2022. Ola Electric dominates the market with 151,344 units sold, giving them a massive 21% share of the e-two-wheeler retail market. Ola Electric's sales average 12,612 units per month, putting them ahead of the second-best player Okinawa Autotech by a margin of 57,211 units.

The top six OEMs have each sold over 75,000 units, and their combined sales add up to 575,143 units, which make up 80% of the total sales in FY2023. Hero Electric, the market leader in FY2022, has slipped to the No. 3 position with 89,165 units sold. 

On the other hand, Ampere Vehicles is the surprise package of FY2023, selling 83,659 units, and has beaten TVS Motor Co. by a narrow margin to take the fourth position. The company's fast-growing all-India dealer network and growing product portfolio have contributed to its success.

TVS Motor Co. has sold 80,565 units with its single product, the iQube, which has put on an impressive show, and new products are expected to roll out in FY2024. Ather Energy has sold 76,277 units, and it is expected to cross the 100,000-unit mark in FY2024.

Electric 3-wheelers have a growth of 46 % (399,540 units)

In FY2023, the three-wheeler segment of the Indian EV industry had an impressive growth of 46% YoY with 399,540 units sold. This sub-segment is driven by the sustained demand for passenger transportation and the increasing demand for e-commerce last-mile delivery. There are currently 453 players in this market, which is contributing to the double-digit growth.

Mahindra Last Mile Mobility has emerged as the market leader in this segment, with 35,013 units sold and a 9% share of the market. The company has six EVs available for sale, including the Treo, Treo Yaari, and e-Alfa Mini for passenger transport, and the Zor Grand, Treo Zor, and e-Alfa cargo for goods transportation. 

Mahindra's focus is on providing low-cost ownership and high profitability to its customers. The Zor Grand cargo EV, launched in August 2022, can save up to Rs 600,000 in ownership costs over five years when compared to a diesel-engined cargo three-wheeler and up to Rs 300,000 versus a CNG cargo three-wheeler.

YC Electric is in the second position with 29,753 units sold, just 5,260 units behind Mahindra. This five-product company offers the Yatri Super, Yatri Deluxe, and Yatri for passenger duties, and the E-Loader and Yatri Cart for cargo operations. YC Electric's low initial costs ranging from Rs 125,000 to 170,000 for passenger EVs and Rs 130,000 to Rs 165,000 for cargo EVs are driving the demand for its products.

The top seven OEMs in this segment have each sold over 10,000 units and together account for 139,840 units sold, which is 35% of total sales. Other than the top two players, five other OEMs – Saera Auto (21,853), Dilli Electric (16,480), Champion Polyplast (16,480), and Champion Polyplast (13,948) recorded five-figure sales.

Electric passenger vehicles have growth of (125% 39,544 units)

According to Vahan, the electric passenger vehicle industry in India has witnessed significant growth of 125% YoY, with retail sales reaching 39,544 units in the current fiscal year. This translates into an average of 3,295 units sold every month, and the number is expected to rise further with the introduction of new products in FY2024 by various vehicle manufacturers.

Tata Motors, with a vast EV portfolio that includes the Nexon EV, Tigor EV, Tiago EV, and Xpres-T (for fleet buyers), has emerged as the dominant player in the industry. The company sold a total of 31,203 units, accounting for an impressive 79% share of the total sales. Following Tata Motors is MG Motor India, which sold 4,412 units and captured an 11% market share. BYD India sold 867 units, rounding out the top three. The detailed breakdown of sales by each company is listed below.

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Data from Vahan on 10-year EV retail sales in India shows that 2.26 million units have been sold since FY2014, with 72% of sales occurring in the last two fiscal years. 

As India aims to have EVs account for 30% of its mobility by 2030, the FAME scheme, state subsidies, and growing consumer awareness are driving the shift towards EVs. With increased FAME II subsidies and localisation of EV parts, costs will decrease, making EVs more affordable. The future looks promising for the EV industry and consumers alike