Electric vehicle sales in India declined in FY2020-21: SMEV
The electric vehicle sector in India registered a 19.91 per cent sales decline in the last financial year as compared to FY2019-2020. The electric two-wheeler segment witnessed a six per cent decline.
- Electric two-wheelers sales declined by 6 per cent in FY2020-21
- Electric cars sales increased by 52.93 per cent in FY2020-21
- EV sales, on the whole, fell by 19.91 per cent
The electric mobility sector in India had been registering substantial sales growth over the last few years. However, the coronavirus outbreak in the country has taken a toll on the EV space in the country.
According to the Society of Manufacturers of Electric Vehicles (SMEV), EV sales in India declined by 19.91 per cent in FY2020-21 (April 2020 to April 2021) as compared to the financial year 2019 -2020.
As per SMEV, a total of 2,36,802 electric vehicles were sold in India in the last financial year as compared to 2,95,683 units in FY2019-2020. It is worth noting that the EV sector in the country had registered a healthy sales growth in FY2019-20 as compared to FY2018-2019. Clearly, the pandemic and some other factors took a toll on the industry.
The sales of electric two-wheelers in India dropped from 1,52,000 units in FY20 to 1,43,837 units in the last financial year, marking a decline of six per cent.
A total of 1,03,000 slow-speed e-scooters were sold in the last financial year along with 40,836 high-speed electric two-wheelers. The electric three-wheeler segment also took a fall; from 1,40,683 units in FY20 to 88,378 in FY2020-21.
This is a 37.17 per cent sales decline. However, the silver lining was the increase in electric four-wheeler sales; from 3,000 units in FY2019-2020 to 4,588 units in FY2020-21, denoting a significant 52.93 per cent growth.
Besides the pandemic, there were some other factors that led to a decline in sales of electric vehicles in India. According to SMEV, only a handful of banks like SBI and Axis bank offer loan on electric vehicles, that too on selected models.
With more banks providing finance options on EVs, the sales of EVs in India is sure to grow. Another reason for a slow transition to EVs from internal combustion engine-based vehicles is the insufficient charging infrastructure in the country.
However, there has been a noteworthy improvement in this field as around 1,300 charging stations have been established in the country. With many corporates stepping up to develop electric charging infrastructure, SMEV is expecting a robust charging network in the country in the next five to six years.
Going forward, the sales of EVs in the country will grow on the account of some key factors like state-specific EV policies. So far, states like Delhi, Karnataka, Maharashtra, Bihar, Andhra Pradesh, Punjab, Meghalaya, Tamil Nadu, Telangana, Uttarakhand, Haryana, Uttar Pradesh, Kerala, Madhya Pradesh, and Odisha have rolled out EV policies and many others will join this list.
And the fact that the e-commerce sector is increasingly relying on electric vehicles to rely on last-mile deliveries will further boost the sales of EVs in the country.
Sohinder Gill, Director-General, SMEV, said, “We were anticipating a good growth before the start of FY 21, but sales remained stagnant due to various reasons. The sales in electric three-wheeler and two-wheeler segment stood low as compared to last year.
A good thing has happened that people started moving towards advanced batteries i.e. lithium. The city speed and high-speed category in the two-wheeler segment have witnessed growth. However, a lot more needs to be done to achieve the target under the FAME II scheme. Timely intervention by the government in a form of policy change is required to fuel the growth and achieve the target by the end of FY22.”