The Indian automotive industry is the 5th largest in the world and is projected to take third place by 2030. While the majority of automobiles still run on fuel, the shift to electric vehicles has begun. Electric vehicle sales gained momentum in 2022 with total sales increasing by more than 211 per cent from sales in FY21.

The number of electric vehicles sold in the country, based on registrations at Vahan portal, were 4,19,812 in FY22 against 1,34,853 in FY21.

Incentivising purchase

Growing awareness about climate change, the need for a cleaner environment and rising pollution levels are propelling users towards electric vehicles. The government is also keen to promote sales of electric vehicles in a bid to arrest the huge oil import bill and move the country away from fossil fuels.

The centre has therefore been rolling out a slew of incentives to speed up the shift, such as offering exemption from road tax and registration fee, providing income tax benefits, and incentivising purchase of these vehicles.

Growth across classes

All classes of electric vehicles have shown a big growth in FY22. Motorcycle/scooter sales have shown the biggest jump, growing 461 per cent from 35,626 units of electric two wheelers in FY21 to 2,00,102 in FY22. E-rickshaws were also greatly in demand this fiscal with 1,52,039 units sold till March 29, 2022. Electric cars sales increased 251 per cent this fiscal with more than 16,000 sales compared to 4,593 electric cars being sold last fiscal year.

The top 10 players in India are dominated by two wheeler companies with total sales of over 2 lakh units. Hero Electric Vehicles leads with the highest number of vehicles sold in FY22 at 63,005. Okinawa Autotech comes second with more than 45,700 vehicles sold. Tata Motors is the only electric car maker in India in the top 10 companies with more than 9,700 vehicles sold.

Maharashtra has registered the highest number of motorcycle/scooter and motor car sales among these five states, followed by Karnataka with more than 34,000 motorcycles/scooters sold. Uttar Pradesh has a huge lead in e-rickshaw with more than 66,000 sold, while Delhi comes in at second place.