New Delhi: The sales trend of Electric Vehicles (EVs) in India during fiscal year 2020-21 (FY21) has registered a decline of 20 percent over FY20, despite an average 94 percent quarter-on-quarter growth, said a report by JMK Research on Monday. "Across this period, the EV market pursued the trade from one extreme reality to another. The monthly (or even quarterly) sales which began as abysmally low (owing to the COVID-19 induced disruption) transformed into the highest-ever registered figures by fiscal-end. The registered EV sales during Q1 of FY2021 shrunk 73 percent year-on-year (Y-o-Y) to 8,387 units whereas the Q4-FY2021 sales rose by 33 percent Y-o-Y to reach 61,401 units, said the report.
Despite an average 94 percent Q-o-Q growth from Q1 to Q4 of FY21, the sales during the corresponding fiscal year plummeted 20 percent below that of FY2020, failing even to cross the FY19 sales level.
The highest FY sales record of 1,68,313 units of FY20 remains to be beaten. With regard to the (state/UT) region-wise sales, Uttar Pradesh (UP) has a clear lead with 23 percent share of total registered EV sales in India, followed by Bihar and Karnataka with 10 percent share each.
In FY21, the High-Speed Electric 2-Wheeler (HS-E2W) segment advanced significantly, registering 49 percent Y-o-Y growth to reach 39,845 unit sales. Among the HS-E2W OEMs (Original Equipment Manufacturers), Hero Electric sold the maximum number of units, attaining ~37 percent share of the market, which was followed by Okinawa and Ampere with ~18 percent and ~15 percent market shares, respectively.
The (registered) Electric 3-Wheeler (E3W) sales in FY21 declined by 38 percent Y-o-Y to reach 86,555 units. This was mainly driven by the steep fall (-43 percent) in the sales of the passenger type E3Ws. However, the sales of Cargo-E3Ws rose by 97 percent over the same period, taking the share of Cargo-E3W to 11 percent of the total registered E3W sales, said JMK Research.
The accelerated Q-o-Q growth can be expected to continue well into the ongoing fiscal year FY2022 on account of increasing consumer awareness, introduction of a sizeable number of new models, and technological advancements along the EV value chain which will lead to realization of greater value for money. In addition to this, effective central and state-level policy interventions in terms of fiscal and non-fiscal incentives (in addition to the ones that are already in place) are also necessary to nurture and sustain the relevant ecosystem.
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