In a significant development for the electric vehicle (EV) sector in India, the Federation of Automobile Dealers Association (FADA) has reported a remarkable 49.25% growth in EV sales during the calendar year 2023. The surge, analyzed across various categories, reflects a substantial shift towards sustainable and eco-friendly transportation.
| CATEGORY | Calendar Year 2022 | Calendar Year 2023 | % Growth |
| 2 Wheelers | 6,31,464 | 8,59,376 | 36.09% |
| 3 Wheelers | 3,52,710 | 5,82,793 | 65.23% |
| Commercial Vehicles | 2,649 | 5,673 | 114.16% |
| Passenger Vehicles | 38,240 | 82,105 | 114.71% |
| Total | 10,25,063 | 15,29,947 | 49.25% |
Source: FADA Research
The data underscores a significant shift in consumer preference towards electric mobility, with a notable increase across all vehicle categories.
Government Initiatives Driving EV Adoption:
- FAME India Scheme (Phase-II):
- Initiated for 5 years from April 1, 2019.
- Initial outlay of Rs. 10,000 Crore, later enhanced to Rs. 11,500 Crore.
- Production Linked Incentive (PLI) Scheme for Automotive Sector:
- Approved on September 15, 2021.
- Budgetary outlay of Rs. 25,938 crores.
- Offers incentives up to 18% for electric vehicles.
- PLI Scheme – National Programme on Advanced Chemistry Cells (ACC) Battery Storage:
- Approved on May 12, 2021.
- Budgetary outlay of Rs. 18,100 crore.
- Aims to establish a competitive ACC battery manufacturing setup for 50 GWh.
Additional Government Measures:
- GST Reduction:
- GST on electric vehicles and chargers/charging stations reduced to 5%.
- Green License Plates:
- Battery-operated vehicles to be given green license plates.
- Exemption from permit requirements.
- Road Tax Waiver:
- States advised to waive road tax on EVs, reducing initial costs.
The combination of robust sales growth and supportive government initiatives signifies a promising trajectory for the electric vehicle market in India. As the nation continues to embrace sustainable transportation solutions, these measures are anticipated to further accelerate the adoption of electric vehicles across the country.
