Thanks to more affordable models available and consumers' environmental consciousness, India has seen a doubling of EV sales in the first half of 2023.
According to Canalys, 2 million light vehicles, including passenger cars and light commercial vehicles, were sold in the first half of 2023, compared with 1.8 million units sold in the corresponding period in 2022. Among the 2 million cars, 48,000, or 2.4% of the light vehicle sales, were EVs. The figure is also a 137% growth year-on-year.
Tata's EVs accounted for 72% of India's EV market, followed by MG Motor's 10% and Mahindra's 9%. BYD, which began delivering Atto 3 in early 2023 and aims to reach 30% of the market by 2030, held 2.9%. BYD's US$1 billion investment plan in India was reportedly withdrawn earlier amid India's concerns over Chinese investments.
Ashwin Amberkar, an analyst at Canalys, said the market expansion during this period was driven by a diverse range of affordable and high-end EV options, contributing to a more inclusive approach to reaching potential customers. Amberkar added that affordable EVs with advanced features attracted buyers mindful of their budget, and premium EVs with extended driving ranges and enhanced connectivity, infotainment, and ADAS technology has gained popularity among environmentally conscious professionals.
Amberkar foresees Tata sustaining its market leadership and expects the second half of the year to witness a continued surge in deliveries, resulting in an EV share of 3.5% in India's light vehicle market. Canalys predicts that by 2025, the EV sector in India will expand to encompass more than 300,000 units, capturing a market share of over 6% within the broader light vehicle market, indicating a CAGR of 59% for the market.
According to Vahan Dashboard, India's electric four-wheelers, including passenger and all commercial cars, have seen registrations rise from 2,455 in 2018 to 83,557 in the first seven months of 2023.
A few days ago, Tata announced their plan to expand its EV product portfolio from the current Nexon EV, Tiago EV, and Tigor EV to include at least four more models by early 2024, which include Nexon EV facelift, Punch EV, Harrier EV, and the Curvv EV.
According to HE Auto, Sailesh Chandra, the Managing Director of Tata Motors Passenger Vehicles, envisions a remarkable upsurge in EV sales, potentially reaching ten times the current volume, adding that five years ago, EVs were sold at a rate of 90 units per month, and they are now sold at 8,500–9,500 a month. Tata Motors just achieved the 100,000 milestone in EV sales.
Source: Canalys, August 2023
Source: Vahan Dashboard, August 2023
