Electric Vehicle (EV) sales in India registered a 19.9pc degrowth in FY 2021 with 236,802 units, as compared to 295,683 units in the previous fiscal year, according to data released by Society of Manufacturers of Electric Vehicle (SMEV) on Thursday. Two-wheeler and three-wheeler sales dropped, but four-wheeler sales grew by 53pc.
The pandemic, lack of finance options for buyers, and insufficient charging infrastructure has affected sales of EVs in the country, the auto body noted.
Two-wheeler sales
The electric two-wheeler (E2W) segment witnessed a drop of 6pc with registered sales of 143,837 units, which include 40,836 high-speed and 103,000 low-speed E2W. In FY20, this segment had 152,000 registered sales.
Three-wheeler sales
The electric three-wheeler (E3W) segment registered sales of 88,378 units, a drop of 37pc compared to 140,683 units sold in FY20. The data does not include three wheelers that are not registered with transport authorities.
Four-wheeler sales
The electric four-wheeler (E4W) segment, was the only segment to register a growth with 4,588 units being sold, an increase of 53pc compared to 3,000 units sold in FY20.
Challenges
Sohinder Gill, Director-General of SMEV said that apart from the COVID-19 pandemic, other factors also led to a decline in EV sales in India. Only a handful of banks offer loan on electric vehicles, that too on selected models. With more banks providing finance options, sales of EVs will grow, he said. He added that insufficient charging infrastructure in the country is also a reason for EV sales decline, however, noteworthy improvement in this field has been seen with around 1,300 charging stations.
Outlook
EV sales can grow on the back state-specific EV policies that support the industry. E-commerce sector is increasingly relying on electric vehicles to rely on last-mile deliveries, whi h will boost the sales of EVs in the country.
Timely intervention by the government in the form of policy change is required to fuel the growth and achieve the target by the end of FY22, SMEV noted.