EV sales hit stumbling block in FY 2020-21, electric cars only solace

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Society of Manufacturers of Electric Vehicle (SMEV) on Thursday informed that sales of electric vehicles in India in FY2020-21 declined by around 20% to 2,36,802. The figure was at 2,95,683 units in FY 2019-20.

Electric two and three wheelers power the battery revolution in the country but both registered a fall. While sales of electric two-wheelers fell to 1,43,837 units, a fall of around six per cent, just 88,378 units of electric three-wheelers were sold compared to 140,683 units in FY2019-20. This figure, however, does not factor in electric three wheelers that are not registered with the transport authority.

SMEV Director-General Sohinder Gill is of the opinion that sales of electric two and three wheelers may have had an impact on the overall figures. “We were anticipating a good growth before the start of FY21, but sales remained stagnant due to various reasons. The sales in the electric three-wheeler and two-wheeler segment stood low as compared to last year,” he explained.

There has been some upward movement when it comes to electric passenger vehicles. As many as 4,588 units were registered as against 3,000 in FY 2019-20, a 53% rise. Electric PVs, however, are only a fraction of the entire Indian electric mobility space and while recent launches of products in the luxury space are a good sign, the penetration remains quite low.

SMEV highlights that factors such as lack of awareness about green vehicles, delay in some states to impliment EV policies and lack of a strong bank finance mechanism for EVs remain a challenge although the next five to six years can see a further boost in development of EV-related infrastructure.