The Society of Manufacturers of Electric Vehicle has published its sales report for the electric vehicle segment in India. SMEV is the registered association that represents the Indian manufacturers of electric vehicles. Their sales report also reveals a decline in the sales of electric vehicles in the Indian market and the association has also revealed steps to correct the decline in growth.
Electric Vehicle Sales Report for Financial 2020-2021
According to SMEV, the electric two-wheeler segment recorded a total sales of 143,837 units. This includes sales of 40,836 high-speed electric two-wheelers and 103,000 low-speed electric two-wheelers. The total sales of the electric two-wheelers stood at 1,52,000 units in FY2020. This means there is a 6% decline in the electric two-wheeler segment. The electric three-wheeler segment registered sales of 88,378 units in FY 2021 compared to 140, 683 units sold in FY2020. But the electric four-wheeler segment fared slightly well. The segment recorded registration of 4,588 units compared to 3,000 units in FY2020. In total, the Electric Vehicle industry sold 236,802 electric vehicles in FY2021 as compared to 295,683 units in FY2020.
Steps to Improve Electric Vehicle Sales in India
According to the SMEV, the following steps will help revive the sales number as well as to achieve the target in 2022. SMEV suggests that a strong bank is needed in the country as only a handful of institutions such as SBI and Axis provide loans on select EV models. SMEV suggests that the government should ask banks to offer loans on electric vehicles to enhance sales. The government should also create awareness of green mobility and encourage citizens to adopt electric vehicles.
The B2B sector is a key player in the growth of electric vehicle sales. The growth in the e-Commerce sector is around 200% YOY and one of the major reasons for the growth in EV adoption. Key market players such as Amazon India and Flipkart have also announced that they will be deploying electric vehicle in their fleet of delivery vehicles.
While many states have rolled out new electric vehicle policies to encourage EV adoption. Some states are yet to employ these policies that will create a larger ecosystem in the country. Also, one of the most important factors in the rapid adoption of electric vehicles is the Charging infrastructure. Currently, 1,300 charging stations have been set up in the country. More charging stations are likely to be installed across the country.