India’s EV Sales Surge to 1.5 Million in 2023, Up 50%: Report

New Delhi, January 22nd, 2024 – Electric vehicle sales in India witnessed massive growth in 2023, crossing the 1.5 million unit mark for the first time, according to a report by the industry body Society of Manufacturers of Electric Vehicles (SMEV). Total EV sales increased by around 50% compared to 2022 numbers.

The stellar growth was driven by rising fuel prices, expanded charging infrastructure, new affordable EV models, and government subsidies and incentives.

As per SMEV estimates, around 1.5 million electric two-wheelers, cars, buses, and trucks were sold in the Indian market in the calendar year 2023. This is a significant jump from 2022, when EV sales crossed the 1 million milestone for the first time, ending the year at around 1.02 million units.

India's EV Sales Surge to 1.5 Million in 2023
Source – Auto car professional

“The EV market has grown at a scorching pace in 2023. Concerns around petrol costs, climate change, and air pollution in cities have convinced more buyers to make the switch to electricity. Falling prices and expanded options across vehicle categories have further accelerated adoption,” said Mohinder Gill, Director General, of SMEV.

Electric two-wheelers continued to dominate the EV market with sales of around 1.2 million units in 2023, according to the industry report. High-speed electric scooters are proving extremely popular for intra-city commuting. Companies like Ola Electric, Ather Energy, and Okinawa led the two-wheeler EV segment.

Electric car sales crossed the 300,000 unit mark in 2023, more than doubling from 2022 numbers. Tata Motors with its Nexon EV and Tigor EV emerged as the top-selling electric carmaker. Other popular models included the MG ZS EV and Hyundai Kona.

Sales of electric buses and trucks also saw strong growth as public transport operators and logistics companies opted for electric vehicles to save on fuel costs.

“2023 was the year electric mobility went mainstream in India. EV sales grew robustly despite high inflation and interest rates. This shows the consumer appetite for EVs is real and persistent,” said Jitendra Vaddadi, Senior Vice President, Greaves Electric Mobility.

While urban demand continues to drive India’s EV boom, policy experts believe incentives for rural buyers could further accelerate adoption. The government already offers subsidies under the FAME II scheme.

Also Read – Electric Vehicle Sales in India Jump 49%, Cross 15 Lakh Units: FADA

Companies remain bullish on future growth as well and are rapidly expanding production capacity. Ola Electric is nearing completion of its mega-factory in Krishnagiri, while Tata Motors and MG Motor are also boosting EV manufacturing. But supply chain issues, especially for semiconductors and lithium-ion cells, remain a challenge.

India’s EV revolution will continue hinging on affordability. As battery costs decline and more affordable models arrive, sales could hit 5 million units by 2025, according to experts. The future for electric mobility in India looks bright.

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