E-car sales hit 5-month low on lower discounts

The sale of electric four wheelers (e-4Ws) in the country has fallen to a five month low of 7,267 units in February 2024, according to the Society of Manufacturers of Electric Vehicles (SMEV). Apparently, the reason is that EV manufacturers have comparatively not given more discounts and benefits on e-cars as compared to electric two wheelers (E2Ws).

Nevertheless, e-cars are going to finish the financial year 2023-24 (FY24) with highest ever yearly sale. In fact, FY24 sales thus far have already gone passed highest annual sales figure of any other fiscal. In the current fiscal, as of March 11, 2024, the EV industry clocked sale of 83,305 units of e-4Ws. Previous best was 47,499 units in entire FY23.

Currently, the Government of India gives subsidy to the tune of Rs 10,000/kWh subject to maximum of 20 per cent of ex-factory price of E4Ws. It is being reported from various quarters that the government might withdraw subsidies in the next fiscal. In that case, e-car sales can hit speed bump.

India’s leading E4W manufacturer, Tata Motors, has requested the government to extend the subsidy scheme till FY27. Shailesh Chandra, managing director, Tata Passenger Electric Mobility and Tata Motors Passenger Vehicles, has said that countries like China and Germany continue to give subsidies and India too should continue giving it.

Already, the share of E4Ws in total sales in the EV industry could meagerly increase to 5.5 per cent in the current fiscal (calculated till March 11, 2024) from four per cent in FY23. For that matter E2Ws’ share too has fallen to 55 per cent from 62 per cent in FY23. Its electric three wheelers (E3Ws) whose share has gone up to 39 per cent from 34 per cent during the same period.