Sale of Electric Vehicles registers a growth of 49.25% in 2023

Sale of Electric Vehicles registers a growth of 49.25% in 2023

Electric Vehicles for Akashvani - AIR Goes Green
Electric Vehicles for Akashvani - AIR Goes Green

As per the information received from Federation of Automobile Dealers Association (FADA), the sale of Electric Vehicles has registered a growth of 49.25 percent during the last calendar year i.e. 2023. The category-wise details of EV sales are as under:

CATEGORY Calendar Year 2022 Calendar Year 2023 % Growth
2 Wheelers 6,31,464 8,59,376 36.09%
3 Wheelers 3,52,710 5,82,793 65.23%
Commercial Vehicles 2,649 5,673 114.16%
Passenger Vehicles 38,240 82,105 114.71%
Total 10,25,063 15,29,947 49.25%

Source: FADA Research

Interest rate increase/decrease on Vehicle loans are linked to Reserve Bank of India (RBI’s) increase/decrease in REPO rates. The repo rate has remained at 6.50% since its last revision on 08th February, 2023.

In order to promote adoption and strengthen the electric vehicles (EVs) in the country, following three schemes have been formulated by the Ministry of Heavy Industries:

  1. Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME India): The Government notified Phase-II of FAME India Scheme initially for a period of 5 years w.e.f. 01st April, 2019 with an outlay of Rs. 10,000 Crore which further enhanced to Rs. 11,500 Crore.
  2. Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry: The Government on 15th September, 2021 approved the PLI Scheme for Automotive Sector with a budgetary outlay of Rs. 25,938 crores.  The scheme provides incentives up to 18% for electric vehicles.
  3. Production Linked Incentive (PLI) scheme, ‘National Programme on Advanced Chemistry Cells (ACC) Battery Storage’:The Government on 12th May, 2021 approved PLI Scheme for manufacturing of ACC in thecountry with a budgetary outlay ofRs. 18,100 crore. Thescheme envisages to establish a competitive ACC battery manufacturing set up in the country for 50 GWh. Additionally, 5GWh of niche ACC technologies is also covered under the scheme.

            Further, following initiatives have also been taken up by the Government of India to increase the use of electric vehicles in the country: –

  1. GST on electric vehicles and chargers/ charging stations for electric vehicles reduced to 5%.
  2. Ministry of Road Transport & Highways (MoRTH) announced that battery-operated vehicles will be given green license plates and be exempted from permit requirements.
  3. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

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