Electric vehicle registrations nearly hit the 10-lakh mark in 2022, with the latter half of the year witnessing the bulk of sales. However, after riding a two-month high with over 1,00,000 electric vehicle registrations, December witnessed a small drop in the number of electric vehicles registered.

In December 99,137 battery-operated electric vehicles were registered, opposed to 1,19,418 vehicles registered in November. In October 1,15,995 electric vehicles were registered. 

According to Vahan, which tracks vehicle registrations, nearly 1 million electric vehicles were registered in 2022. 

The jump in the number of electric vehicles started in March, where over 80,000 vehicles were registered, compared to 56,000 vehicles registered in February. 

“Spurred by government support in the form of subsidies, enhanced awareness and increasing product launches, the electric vehicle segment has seen a significant upturn in prospects over the past year. The surge in demand has spurred investments by various start-ups in the electric two-wheelers space, while leading passenger vehicle Original Equipment Manufacturers (OEM) have also raised capital in their recent set-up of electric vehicle subsidiaries. The industry remains focussed on enhancing domestic value addition with a view to building capabilities,” said Shamsher Dewan, Senior Vice President & Group Head, Corporate Ratings, ICRA Limited.

Weak charging infrastructure may constrain electric vehicles’ penetration into passenger vehicles.  Local creation of batteries for vehicles will assist in faster penetration of electric vehicles.

“Battery remains the key component, creation of a local battery cell manufacturing ecosystem remains the key to helping India achieve its electrification targets. In this regard, the Government of India recently signed agreements with three companies for incentives under its ACC PLI scheme, which is expected to support capability development,” Dewan added.