Experts predict that the electric vehicle (EV) sales will surpass the 2 million mark in the next fiscal year if the current trend continues. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) II program, which is set to end at the end of the next fiscal year, will add significant momentum across segments in FY24 once the incentive amount is disbursed. This fiscal year has already seen retail sales of EVs cross 1.11 million units, accounting for over 5% of total automobile sales, and posting a growth surge of 147% from FY22.

EV fleet operators and individuals purchasing two- and three-wheelers are the primary drivers of this growth. New launches and increased availability of charging points, along with low running costs, are attracting buyers. This fiscal year, electric two- and three-wheelers have accounted for the majority of sales, with 690,000 units and 372,000 units sold, respectively.

According to the Vahan site, e-vehicle registrations stood at 84,635 units this month. Retail sales touched 105,976 units in February, indicating sustained growth.

Consumer education that EVs are an upgrade from internal combustion engines (ICE) and not just vehicles for better total cost of ownership (TCO) has paid off this year. The e-scooter industry is expected to achieve 25% penetration in FY24, with e-scooters leading the way, growing from 12.2% in April 2022 to 15.1% in February 2023.

Mahindra Last Mile Mobility and Ather Energy, major electric three-wheeler and two-wheeler makers, respectively, have seen strong growth this year. Both companies have expanded their retail footprint and charging infrastructure.

Tata Motors, a major retailer of electric vehicles, aims to double its electric passenger vehicle sales to 100,000-110,000 in FY24, following the launch of more EV offerings. State policies have also helped boost EV sales, and if the volumes continue to rise, experts predict that EVs will easily surpass the 2 million mark in FY24.

Source: ET