Electric vehicle sales down 1.9% in February due to challenges: Fada

While all four categories of EVs registered double-digit M-o-M declines in sales, three-wheeler, commercial, and passenger vehicles saw single-digit Y-o-Y growth

Electric vehicle (EV) sales fell 1.9 per cent year-on-year (Y-o-Y) and 18.2 per cent month-on-month (M-o-M) to 139,026 units in February, according to data from the Federation of Automobile Dealers Association (Fada).

 

While all four categories of EVs registered double-digit M-o-M decline in sales, three-wheelers, commercial, and passenger vehicles saw single-digit Y-o-Y growth.

 

With sales of TVS Motor, Ather Energy, and Ola Electric dropping to 18,762, 11,807, and 8,647 in February, the country recorded a 22.1 per cent fall in two-wheeler sales.

 

Bajaj Auto, however, saw a slight improvement in its monthly figures in the same category. But Y-o-Y sales plunged by 8 per cent.

 

Three-wheeler sales last month fell 11.4 per cent M-o-M but rose 4.9 per cent Y-o-Y, with total sales at 53,116 units.

 

All original equipment manufacturers (OEMs), except Omega Seiki, saw a sharp decline in their M-o-M three-wheeler sales.

 

In the case of passenger vehicles, sales dropped to 8,968 units in February from 11,266 units a month ago but increased from 7,539 units a year ago. Only Hyundai Motor and BMW India recorded substantial growth in both M-o-M and Y-o-Y figures. 

 

Electric commercial vehicle sales stood at 856 units last month, compared to 847 units in January and 972 units a year ago.

 

“As an industry, we must sustain collaborative efforts towards enhancing charging infrastructure, policy incentives, and awareness initiatives to unlock the full potential of EV adoption in India. Aligning with the Centre’s ambitious EV30@2030 vision — aiming for 30 per cent of private cars, 40 per cent of buses, 70 per cent of commercial vehicles, and 80 per cent of two and three-wheelers to be electric — the auto industry needs to do a lot more in driving India's clean mobility transition forward,” said C S Vigneshwar, Fada president.

 

The second half of 2024 saw higher total EV sales, peaking in October at 219,482 units, the highest monthly figure of the year.

 

Electric vehicle sales, however, fell in November and December to 192,575 units and 132,302 units (till December 29), respectively, but monthly sales remained above 100,000 units throughout the year.

 

Last year’s growth received a fresh boost as the Ministry of Heavy Industries (MHI) reinstated subsidies for cargo electric three-wheelers (e3Ws) under the PM E-DRIVE scheme for the remainder of the current financial year (FY25).

 

However, the subsidy, previously halted after annual targets for FY25 were achieved, has been revised downward to ₹25,000 from ₹50,000 per vehicle. The e3W industry sold 80,546 units within months of the scheme’s launch.

 

The EV market is expected to grow at a compound annual growth rate (CAGR) of 43 per cent, reaching 932,000 units by 2030. Of this, 61 per cent of demand is projected to come from electric SUVs.

 

Nitin Gadkari, road transport and highways minister, said last year that EV sales in the local market are expected to grow to 10 million units by the turn of the decade, generating jobs for 5 million people. 

Though FADA didn't specify the challenges faced by the EV makers, they have been facing challenges such as a lack of widespread charging infrastructure, high initial costs, range anxiety and a fragmented supply chain with many small suppliers. 

 

Additionally, India’s electric mobility sector faces challenges like simplifying GST and expanding PLI schemes.