Retail sales of electric vehicles (EVs) in 2021 has gone up by more than 160 per cent at 3,11,350 units, as compared to 1,19,652 units in 2020, driven by sales of two- and three-wheeler EVs.

Many new companies have entered EV manufacture. especially the two-wheeler EV space. There are more than 55 companies engaged in EV manufacture; some of the leading companies are Hero Electric, Ather Energy, Ampere Vehicles, Kinetic Green Energy & Power Solutions, Okinawa Autotech and Lectro E-mobility. 

Segment wise, the electric two-wheeler retail numbers have grown by 425 per cent at 1,43,271 units in 2021s as against only 27,269 units in 2020. Similarly, in the three-wheeler EV segment, retail sales grew by 74 per cent in 2021 to 1,53,432 units as compared with 88,139 units in 2020, the latest Vahan data (Ministry of Road Transport & Highways) indicates. 

The market leader in the electric two-wheeler segment Hero Electric has also grown substantially in the last one year and recently tied up with many banks to offer attractive finance schemes to customers, which would help the company add to its numbers.

So far this month, the company has partnered with State Bank of India, Axis Bank and Oto Capital. 

“We have seen an influx of EV players in the last three-four years. Some are serious players with big infrastructure and others are assemblers in a shed. With India’s Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme picking pace, multiple fly-by-night EV companies have established shop,” Vinkesh Gulati, President, Federation of Automobile Dealers Associations (FADA) told BusinessLine. 

However, he also said the low complexity of EVs compared to internal combustion engines (ICEs), where majorly only an electric motor with battery needs to be assembled, organisations have started importing cheap materials as well as panel parts and are appointing dealers. 

“There are many cases where without enough research and development, companies are launching their products in a hurry, which eventually is catching fire, thus risking the life of the rider and also the dealer who invests his hard earned money to run the brand,” he cautioned. 

The electric passenger vehicle (PV) segment shas grown by 201 per cent to 12,424 units last year as compared with 4,121 units in 2020, according to Vahan data. A leading company in the EV space, Tata Motors, said it has sold more than 14,880 vehicles between January 2020 and December 2021. Similarly, MG Motor has sold more than 4,000 EVs since 2020. 

According to leading valuation and consulting firm RBSA Advisors, the Indian EV market is expected to reach a size of more than $150 billion by 2030 and is currently in its infancy and estimated to grow at a CAGR of around 90 per cent from 2021 to 2030. 

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