Automotive segments such as passenger vehicles, two-wheelers, and commercial vehicles face their own challenges. In some segments, demand is high, but production is constrained, and some are still yet to revive from the COVID blues. However, electric vehicles are the segment that is marching strong as the retail sales are peaking month on month.
According to Vahan Portal and JKM research, electric vehicle (EV) retail sales posted a 255% jump at 38,684 units in October 2021 compared to 10,637 units in the same month last year. It is to note that sales figures represent EVs registered across 1,357 RTOs in 33 states/ UTs.
Even on a month-on-month basis, the segment grew by 12.7% when it sold 34,316 units in the retail market.
It is evident that government policies such as FAME-II and state-level subsidies play an important role in pushing EV sales. Moreover, high fuel prices are making ICE two-wheelers unviable for middle-class consumers. On the other hand, new evolved products and continuous charging infrastructure expansion are other factors to consider. This is the reason why EV retail sales are touching new peaks every month, primarily led by electric two-wheelers, said, industry experts.
For instance, India’s leading electric two-wheeler manufacturer Hero Electric has been able to sell 50,331 units until October 2021 and is on track to achieve 2X sales this year. The company had recently announced its capacity expansion to manufacture five lakh scooters every year.
Sohinder Gill, CEO, Hero Electric, said, “While we are happy celebrating the delivery of 50,000 bikes to the customers, we owe an apology to another 16,500 customers who are on the waitlist for deliveries and may have to wait for a few more weeks. This is the moment to acknowledge the positive steps of the government that catalysed this high growth EV ecosystem.”
On the impact of semi-conductor shortage, Gill told Mobility Outlook, the impact is minimal as the numbers are very low in the EV segment compared to ICE vehicles. However, it has increased the waiting period for certain customers.
Similarly, Greaves Cotton owned Ampere Electric sold 5,000 units in October 2021. It is interesting to note that the company sold sizable units in non-metro regions.
Roy Kurian, COO, Ampere Electric, said, “Buoyed by strong sales, robust finance, and after-sales support, we are committed to accelerating India’s transition to EVs. The demand for EV is only going to multiply and as a leader in e-mobility, we recognise that building an ecosystem with the buyer at the center is important.”
EV registrations in October 2021 were driven by electric two-wheelers, which contributed 49.8%, and passenger-type electric three-wheelers, which contributed 42.2% of the total sales.
While the cargo-type electric three-wheeler contributed 4.3% and electric cars contributed 3.4%.
The overall HS-E2W sales in the country in October 2021 stood at 19,253 units, signifying a 16% MoM jump and a YoY leap in registrations of 603%.
The sales of registered E3Ws (both passenger and cargo-type) in October 2021 stood at 18,004 units, increasing MoM by 10.3%.
Passenger E3W sales saw an increase of 13%, whereas the cargo E3W sales fell by 8% as compared to that of the previous month.
The cumulative sales of Electric Cars in October 2021 stood at 1,299 units, a marginal MoM increase of 6% and a YoY increase of 188.67% in registrations.
The cumulative sales of e-buses in October 2021 stood at 87 units, with an MoM increase of 10%.
State-Wise EV Sales
Among all the states and UTs, Uttar Pradesh continues to contribute the highest sales with a 21% share in overall sales in India. Karnataka has the second-highest sales at 11% share, followed by Maharashtra (11%), Delhi (8%), Bihar (8%), Rajasthan (8%), and Tamil Nadu (7%).