EV sales in India grew by 48 per cent year-on-year in CY2023. A total of 15,26,319 electric vehicles were registered in the country last year compared to 10,25,116 in 2022.

According to Vahan, a website that registers vehicles in India, 72,321 electric four-wheelers were registered in CY2023 while 32,260 were registered in 2022.

“Significant investments are underway by both legacy OEMs and start-ups across various facets of the electric vehicle ecosystem. Various automotive component manufacturers are also investing materially to develop component capabilities, to take a lead in the space. Even as the funding environment from banks and NBFCs remains cautious, several start-ups have raised funds in the current year as well, with investors continuing to remain bullish on the growth of the EV sector in the country. A confluence of factors such as improving product portfolio, charging infrastructure, and financing availability as well as a gradual decline in battery prices would aid in the acceleration of EV penetration across segments over the medium term,” said Srikumar Krishnamurthy, Senior Vice President & Co-Group Head - Corporate Ratings of ICRA Limited.

Also read: Consultations on new EV policy to boost investments underway: senior official 

The government has a target of 30 per cent EV penetration in private cars, 7 per cent for commercial vehicles, and 80 per cent for two and three-wheelers by 2030.

Despite the reduction in FAME II subsidy, sales of electric two-wheelers witnessed an uptick of 36 per cent in CY2023. 8,54,96 electric two-wheelers were registered in 2023 as compared to 6,27,353 registered in 2022.

The EV makers are optimistic about further growth in 2024.

businessline had earlier reported that the investment in the electric two-wheeler industry saw a dip. The electric two-wheeler industry received an investment of $427 million in 2023. The sector in 2022 received $796 million in investments, $494 million in 2021, and $169 million in 2020, according to data from Tracxn.

“Over the past three years, we have experienced notable growth, achieving a 100 per cent annual increase. Looking ahead to 2024, we are currently in the developmental phase of the Nimbus platform, scheduled for launch in the upcoming financial year. This platform features distinctive elements, including our work on rare earth-free magnet electric motors, showcasing our commitment to environmentally conscious technologies,” said Ketan Mehta, CEO and founder of HOP Electric Mobility.