The electric vehicle industry in India ended the fiscal FY22 on a high note as the total registered EV volumes ( all segments) reported strong growth at 4.3 lakh units compared to 1.3 lakh units in FY21.
The record volumes were boosted by high fuel prices, revisions in the FAME policy and additional benefits under different State-level EV policies.
March 2022 saw the highest-ever monthly registered volumes at 77,128 units, an increase of about 43 per cent over February 2022 numbers and a 196 per cent jump over March 2021 volumes, according to information on Vahan Dashboard.
Record numbers
“FY2022 was a significant year for EVs in India as they took one big step away from being ‘niche’ and a step closer to being mainstream, and this phenomenon was more prominent in the 2W category. The year saw electric 2W OEMs clocking record numbers, entry of new players into the 2W EV space, and legacy OEMs deciding that they’ve waited for enough and it’s time to enter the game big time. So, it could well be the ‘zeroth’ year for e2Ws in a sense,” said Suraj Ghosh Director, Mobility, S&P Global.
Last month, the overall high-speed electric two-wheeler volumes stood at about 50,000 units, which is the highest-ever monthly number amid growing debate over the safety of electric two-wheelers after the recent fire incidents.
For FY22, the total registered high-speed electric two-wheeler sales are estimated at 2.31 lakh units (about 41,050 units in FY21) though final numbers, including sales of low-speed scooters, are awaited. Hero Electric is the market leader with 28 per cent market share in FY22 in the E2W segment, followed by Okinawa (20 per cent), Ampere (11 per cent) and Ather (9 per cent) among others.
Total registered electric car sales were also the highest monthly number at 3561 units in March 2022. For FY22, total e-car sales stood at about 19,520 units, according to JMK research.
“In the PV category, though the base is small, the growth cannot be underestimated. It’s been established by the success of the Tata Nexon that Indian customers are ready to experiment if it has a high VFM (value for money) proposition. We expect more EV models to be introduced this fiscal as every carmaker is getting enticed to this segment; the electric PV sales are likely to grow about 2.5 times over FY22,” said Ghosh.
With businesses and educations institutions opening up, the three-wheeler segment is seeing a strong revival, but the market is shifting in favour of EVs. “A tactical shift from ICE to EV is also visible as 45 per cent 3W market is now driven by EVs,” said Vinkesh Gulati, President, Federation of Automobile Dealers Associations (FADA).
Total electric three-wheeler sales stood at 177,874 units in FY22 as against 88,391 units. YC Electric Vehicle is the market leader with about 10 per cent share, followed by Saera Electric Auto (4.8 per cent) and Mahindra Reva Electric (4.5 per cent), according to FADA’s data.
E2W safety issues
“Safety concerns around EVs, especially e2Ws, are a serious issue and they must be addressed by the OEMs and relevant government authorities. It has the potential to dent the perception of EVs in general. Having said that, though the recent accidents of e2W fire are likely to add some element of doubt in some prospective customers, we do not expect it to affect the full-year sales in the next FY, assuming that such incidents do not recur,” said Ghosh.
Rising fuel prices, incentives from Central and State governments, resumption of normal economic activities, e-commerce growth and revival of the gig economy will propel the growth of EVs and sales momentum is expected to continue in FY23 as well.