May was a key month in India’s electric vehicle (EV) industry, with cumulative sales of all EV segments, including two- and three-wheelers, passenger vehicles, buses, and light and heavy commercial vehicles, exceeding 150,000 units. According to retail data from the official website Vahan, which tracks car registrations, electric vehicle sales reached 100,000 units for the seventh consecutive month in May.
Sales reached 157,338 units in May 2023, breaking the previous record of 140,669 units established in March 2023 by 16,669 units. This marked a 41.74 percent month-on-month rise over April 2023 sales of 110,999 units. Furthermore, year-on-year growth was 125 percent, representing a significant increase from May 2022 sales of 69,901 units.
Two- and three-wheeled electric vehicle accounted for 66 percent (104,829 units) and 28 percent (44,609 units) of the total 157,338 EVs sold in May 2023, respectively.
Electric passenger vehicles accounted for 7,443 units, or a 4.73 percent share, as consumers transition to e-mobility for personal use. Electric buses and cargo vehicles accounted for the remaining 1.27 percent of the total electric vehicle market.
The predicted price increase from June 1 due to the removal of subsidies can be ascribed to the segment’s sales growth. India recently agreed to lower the subsidy for electric two-wheelers under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme. In a recent announcement, the Ministry of Heavy Industries made a change to the FAME India Phase II plan, reducing the subsidy for electric two-wheelers to Rs 10,000 per kWh from Rs 15,000 per kWh and lowering the maximum subsidy threshold from 40% to 15%.
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