Electric vehicle sales encountered stumbling blocks in the 2020-21 fiscal year, electric cars are only consoling

The Society of Manufacturers of Electric Vehicle (SMEV) announced Thursday that electric vehicle sales in India fell around 20% to 2,36,802 in fiscal 2020-21. In the 2019-20 fiscal year, the number was 2,95,683 units.

Electric two-wheelers and tricycles are fueling the battery transition in the country, but both saw a decline. While sales of electric two-wheelers fell to 1.43,837 units, a decrease of around six percent, only 88,378 units of electric three-wheelers were sold, compared to 140,683 units in fiscal year 2019-20. However, this figure does not take into account electric tricycles that are not registered with the transport authority.

HT car infographic.

SMEV’s general manager Sohinder Gill believes that sales of electric two-wheelers and three-wheelers may have had an impact on total numbers. “We had expected good growth before the beginning of fiscal year 21, but sales stagnated for various reasons. Sales in the electric three-wheeler and two-wheeler segment remained low compared to the previous year,” he said.

There has been some upward movement in electric passenger cars. Up to 4,588 units were registered, up from 3,000 in FY 2019-20, an increase of 53%. However, electric PVs make up only a fraction of the total electric mobility space in India, and while the recent luxury product launches are a good sign, the penetration remains quite low.

SMEV highlights that factors such as a lack of awareness of green vehicles, delays in implementing EV policies in some states, and the lack of a strong bank funding mechanism for EVs remain a challenge, although EV development may accelerate further over the next five to six years -related infrastructure.