India's best EV month ever!

Electric vehicle retail sales in India surpass 1,50,000 units for the first time in May 2023 but it remains to be seen how the two-wheeler industry will fare in the post-subsidy cut regime, writes Ajit Dalvi.

- Ajit Dalvi

It’s no secret now that the fifth month of calendar year 2023 has turned out to be quite a news-making one when it comes to scaling new highs in the electric vehicle segment in India. For starters, cumulative sales of all EV segments — two- and three-wheelers, passenger vehicles, buses and light and heavy goods vehicles — have gone past the 1,50,000-unit mark for the first time. And May 2023 is the eighth consecutive month that EV sales have crossed the 1,00,000 mark, as per retail data gleaned from the Vahan website.

May 2023’s sales of 1,57,338 units are 16,669 units ahead of the previous best — March 2023’s 1,40,669 units and a robust 41.74 percent month-on-month increase (April 2023: 1,10,999). The year-on-year growth is a handsome 125 percent increase (May 2022: 69,901 units).

Along with the sustained consumer shift to EVs, last month’s retail score is also thanks to the electric scooter and bike market setting a new monthly benchmark of over 1,04,750 units as a result of buyers rushing to buy before prices rose from June 1 as a result of the slashed FAME II subsidy.

Of the total 1,57,338 EVs retailed in May 2023, two- and three-wheeled EVs — the most affordable products in the zero-emission segment — accounted for 66 percent (1,04,829 units) and 28 percent (44,609 units) respectively of the overall EV pie. Electric passenger vehicles, which are seeing growing demand amidst the personal usage consumer transition to e-mobility, accounted for 7,443 units and a 4.73 percent share. The remaining 1.27 percent share of the total EV pie is accounted for by electric buses and goods vehicles.

Here’s a look at how each sub-segment performed.

ELECTRIC TWO-WHEELERS