India’s electric vehicle (EV) market saw a dramatic rise in FY2022, with total sales crossing 4 lakh units, a more than 100% increase from the previous year. This explosive growth is fueled by rising fuel prices, supportive government policies, and a growing variety of affordable electric two-wheelers (E2Ws).
E2Ws Dominate the Landscape: The report by JMK Research reveals that E2Ws were the undisputed champions, capturing over 55% of the market share. This category witnessed a staggering 210% increase in sales compared to FY2021, driven by increased consumer interest and the launch of new models by established players like Hero Electric and Ola Electric, and emerging startups like Okinawa Autotech.
Electric Three-Wheelers Gain Traction: Electric three-wheelers (E3Ws) also saw significant growth, recording a 102% increase in sales, with both passenger and cargo variants contributing to the surge. Leading players like YC Electric Vehicle and Mahindra Electric saw their market shares strengthen, indicating a maturing E3W landscape.
Electric Cars See Steady Progress: While E-Cars still constitute a smaller segment, they enjoyed a remarkable 275% rise in sales compared to FY2021. Tata Motors remains the dominant player, holding over 85% of the market share, with MG Motor following closely behind at 11%. The increasing range and affordability of new E-Car models are expected to further boost this segment in the coming years.
Challenges and Opportunities: Despite the positive outlook, the report also highlights challenges such as limited charging infrastructure, range anxiety, and higher upfront costs compared to ICE vehicles. However, the government’s continued push for EV adoption through subsidies, FAME-II policy, and focus on charging infrastructure development are expected to address these hurdles and pave the way for even faster EV growth in the coming years.
Overall, the JMK Research report paints a promising picture for India’s EV market, with strong growth across all segments, particularly E2Ws and E3Ws. Continued government support and increasing consumer interest are likely to propel India towards becoming a major global EV player in the near future.
