Hi There 
Can you guess the state that had the highest share of EV sales in 2023?
If you guessed Uttar Pradesh, you guessed right.
The state witnessed 2,77,837 EV sales followed by 1,52,324 and 90,241 units sold in Karnataka and Tamil Nadu respectively.
According to the Ministry of Heavy Industries, 0.52 million EV units were registered over the last three years. This means Electric Vehicles are successfully imprinting themselves in the Indian consumer’s mind.
Recently, Minister of Road Transport & Highways, Nitin Gadkari said that subsidies on EVs are no longer necessary since buyer’s confidence is high and production costs have come down.
Moreover, the Indian government is pushing the growth of Electric Vehicles with an eye on reducing dependence on petrol and diesel. With the government’s backing, India is looking to become the third-largest EV industry in the world by 2030.
Automobile manufacturers are also looking to increase their EV output by adding roughly 10 new models in the next 3-5 years. Here are some of the top EV companies in India:
Is EV Free of Troubles?
The EV industry has a few teething problems, being a relatively new industry. One of the main problems is the availability of public charging stations. Currently, there are 12,146 charging stations operational in the country. Compared to the 1.7 million EV sales in 2024 alone, there aren’t enough charging stations to keep up.
Also, there is a power problem in India. With charging stations slowly popping up in the country, it’s putting a strain on the already burdened power grid.
And finally, there’s the price issue. India is a price-sensitive market. So when we see popular brands charging over ₹15 Lakhs for EV models compared to their ₹8 Lakh diesel counterparts, we’re going to find it hard not to choose the cheaper alternative.
When it Comes to EV, Think Long-Term
Despite the challenges, the government is banking on EV’s growth in India. Minister Nitin Gadkari believes prices of Electric Vehicles will be on par with petrol and diesel vehicles in two years.
Looking at the international scene, prices of EVs are projected to match prices of fossil fuel-powered vehicles in the US, Japan, and China by 2026.
With a commitment from policymakers to support Electric Vehicles, it looks like it’ll benefit those with a vested interest in the industry like investors and manufacturers.
Those betting on the industry can potentially see returns in the long term. All we can say is that time will tell.
Regards,
Jubin Varghese
Disclaimer: The content of this email should not be construed as investment advice. All data were sourced from public domains. Data as of 13th September 2024