Electric Vehicle Sales in India Surge by 49.25 percent in 2023

Overall, the total sales of electric vehicles in 2023 reached an impressive 15,29,947, showcasing a significant growth rate of 49.25 percent compared to the previous year's total of 10,25,063.

February 05, 2024. By Abha Rustagi

The electric vehicle (EV) market in India witnessed a substantial growth of 49.25 percent in 2023, as reported by the Federation of Automobile Dealers Association (FADA). This surge in sales is attributed to robust government initiatives and incentives aimed at promoting sustainable and eco-friendly transportation.

The sales of electric two-wheelers increased from 6,31,464 in 2022 to 8,59,376 in 2023, marking a commendable growth of 36.09 percent. The three-wheeler segment experienced an exceptional growth of 65.23 percent, with sales escalating from 3,52,710 in 2022 to 5,82,793 in 2023. The sales of electric commercial vehicles surged by an impressive 114.16 percent, climbing from 2,649 in 2022 to 5,673 in 2023. The growth in electric passenger vehicles was equally remarkable, registering an astounding 114.71 percent increase, with sales reaching 82,105 in 2023 from 38,240 in 2022.

Overall, the total sales of electric vehicles in 2023 reached an impressive 15,29,947, showcasing a significant growth rate of 49.25 percent compared to the previous year's total of 10,25,063.

The interest rates on vehicle loans, crucial for such growth, have remained stable at 6.50 percent since the last revision by the Reserve Bank of India on February 8, 2023.

To further boost the adoption of electric vehicles, the Ministry of Heavy Industries has implemented three key schemes, namely FAME India (Phase-II), Production Linked Incentive (PLI) Scheme for Automotive Sector, and PLI Scheme - National Programme on Advanced Chemistry Cells (ACC) Battery Storage.

In addition to these schemes, the government has undertaken several initiatives to encourage electric vehicle usage, including reducing GST on electric vehicles and chargers/charging stations to 5 percent, issuing green license plates for battery-operated vehicles, and waiving road tax on EVs, thereby reducing their initial costs.

This information was shared by Krishan Pal Gurjar, Minister of State for Heavy Industries, in a written reply in the Rajya Sabha, emphasizing the government's commitment to driving the adoption of electric vehicles for a sustainable and green future.

Tags:

Sustainable Transport

Electric Vehicles

EVs

Federation of Automobile Dealers Association

Electric three wheelers

Electric commercial vehicles

RBI