EV sales surge by 55% in July, led by e-two-wheelers

Electric vehicle (EV) sales in India saw significant growth in July, with a 55.2% year-on-year increase, reaching 179,038 units, as reported by the Federation of Automobile Dealers’ Association (FADA). This surge was largely driven by a massive 96% rise in e-two-wheeler sales.

In July 2023, total EV sales stood at 116,221 units. The sales of electric two-wheelers nearly doubled, reaching 107,016 units, a 95.94% increase from the 54,616 units sold in July the previous year. Electric three-wheeler sales also saw an 18.18% rise, with 63,667 units sold compared to 58,873 units the year before. Additionally, commercial vehicle sales experienced a two-fold increase, growing to 816 units from 364 units in July 2023.

However, passenger vehicle (PV) sales declined by 2.92%, with 7,541 units sold in July compared to 7,768 units in the same month last year. Despite this decline, FADA President Manish Raj Singhania highlighted the growing acceptance and demand for EVs in India. He noted the impressive year-on-year growth rates in the two-wheeler (95.94%) and three-wheeler (18.18%) segments, which now hold market shares of 7.4% and 57.6%, respectively.

The commercial vehicle segment also showed significant progress, with a 124.2% year-on-year increase and a current market share of 1.02%. Singhania attributed the surge in EV sales to attractive discounts and the anticipation of the discontinuation of the Electric Mobility Promotion Scheme (EMPS), despite its extension.

The EMPS, announced by the Ministry of Heavy Industries in March, aimed to boost EV adoption with a total outlay of Rs 500 crore for a four-month period from April 1, 2024, to July 31, 2024. The scheme has now been extended to September 30, with the outlay increased to Rs 778 crore, further promoting the growth of the EV market in India.