Rising fuel prices and the government's subsidy have pushed electric car sales in the fast lane. According to recent industry reports, the segment has witnessed a growth of 234% in the first half of the ongoing fiscal year.
The segment sold 6,261 units in the April to September period of this year, tripling it from 1,872 units in the same period last year. Leading the segment is Tata Motors, with two products, namely Nexon and Tigor. The carmaker grabbed 70% of the total sales.
Similarly, MG Motors accounted for 28.57% market share in the segment. MG Motor ZS EV sales zoomed from 511 units in the April-September period in 2020 to 1,789 units in the first half of the ongoing year.
Industry experts point out that in a few states, Tata Nexon Diesel and Tata Nexon Electric are at par in terms of cost of acquisition due to FAME and state subsidies. Also, the TCO of an electric car is way cheaper than an ICE vehicle.
The other reason behind rising electric car sales is rising fuel prices, making consumers look at alternative fuel options.
On the other hand, Hyundai Motor India lost its market share by 4.40% in H1FY22 as the company has globally stopped the production of the Kona SUV and is planning to bring a new version of the SUV soon.