Electrics and hybrids account for 1 per cent and 5.7 per cent share of total car sales, respectively

While it was evident in the 1800s that automobiles would replace horse-drawn carriages, inventors were experimenting with different fuels. Steam-powered vehicles were preferred, but there were attempts at running electric motors as well. German Bartha Benz’s 106 km cross-country journey won the race for gasoline-fuelled internal combustion engine vehicles.

Two centuries later, advancements in technology and concern about fossil fuels have put electric vehicles (EVs) on the map again.

The Auto Expo shows are handy for tracking changes in the industry. Five years ago, India sold less than 1,000 electric cars, and the Expo featured 26 concept EVs.

At the Auto Expo, nearly all major car manufacturers have launched an electric car model.

The compound annual growth rate (CAGR) of electric car sales has been 141 per cent in the last five years, according to VAHAN, a government database on vehicle registrations. Hybrid cars, which use petrol and batteries, grew 101 per cent annually in this period.

In the next two years, hybrids and electrics would account for more car sales than diesel. A ‘Business Standard’ analysis shows that diesel vehicle registrations have dipped from 34 per cent in 2018 to 18.9 per cent in 2022. Petrol cars account for nearly two-thirds of total car sales, up from 57 per cent five years ago.

The share of electrics and hybrids has grown from a minuscule 0.4 per cent in 2018 to 6.7 per cent in 2022. Electrics and hybrids account for 1 per cent and 5.7 per cent share of total car sales, respectively.

Two-wheelers lead the electric segment, growing 150 per cent annually over the last five years. But they still account for just 3.9 per cent of sales of the total two-wheeler segment. In 2021, two-wheeler sales overtook sales of e-rickshaws, and last year, twice as many electric two-wheelers were sold. They accounted for 57.6 per cent of the total electric vehicular population.

Vehicle sales, however, are still limited to the rich states. The share of the top seven states (basis per capita income) in car sales was almost twice that of the bottom seven. The divide was even starker for electric vehicles, where 82 per cent of car sales and 65 per cent of two-wheeler sales were accounted for by the wealthiest states.

As the industry gears up for another transformation—SUVs account for a higher share of sales than hatchbacks and sedans—challenges abound. Car sales grew at a CAGR of 3 per cent in the last five years, whereas two-wheeler sales have decelerated.

India’s automobile market remains concentrated in wealthier states.