Electric Vehicle Sales Surge by 48% in Calendar Year 2023

Electric Vehicle Sales Surge by 48% in Calendar Year 2023

In 2023, more electric cars and other vehicles were sold in India compared to the year before. The number went up by 48%! In 2023, there were 15,26,319 electric vehicles registered in India. This is way more than the 10,25,116 vehicles registered in 2022. Vahan, a website that keeps track of vehicle registrations in India, says that in 2023, 72,321 electric cars were registered. In 2022, only 32,260 electric cars were registered.

“Significant investments are underway by both legacy OEMs and start-ups across various facets of the electric vehicle ecosystem. Various automotive component manufacturers are also investing materially to develop component capabilities, to take a lead in the space. Even as the funding environment from banks and NBFCs remains cautious, several start-ups have raised funds in the current year as well, with investors continuing to remain bullish on the growth of the EV sector in the country. A confluence of factors such as improving product portfolio, charging infrastructure, and financing availability as well as a gradual decline in battery prices would aid in the acceleration of EV penetration across segments over the medium term,”

said Srikumar Krishnamurthy, Senior Vice President & Co-Group Head – Corporate Ratings of ICRA Limited.

The government aims for more electric vehicles on the roads by 2030: 30% for private cars, 7% for commercial vehicles, and a big 80% for bikes and three-wheelers.

Even though the government’s support for electric vehicles went down, more electric bikes were sold in 2023! There was a 36% increase compared to 2022. In 2023, 854,960 electric bikes were registered, up from 627,353 in 2022.

The companies making electric vehicles are hopeful for even more growth in 2024.

Reports show that investments in electric bikes went down recently. In 2023, the industry got $427 million in investments, whereas it received $796 million in 2022, $494 million in 2021, and $169 million in 2020, according to Tracxn’s data.

“Over the past three years, we have experienced notable growth, achieving a 100 per cent annual increase. Looking ahead to 2024, we are currently in the developmental phase of the Nimbus platform, scheduled for launch in the upcoming financial year. This platform features distinctive elements, including our work on rare earth-free magnet electric motors, showcasing our commitment to environmentally conscious technologies,”

said Ketan Mehta, CEO and founder of HOP Electric Mobility.