A slow turn in EV sales as investor funding, state subsidies continue

Fewer than six out of every 100 vehicles sold in India are electric

Electric vehicle (EV) sales in the country have declined for two months in a row as the government increases subsidies.

EV’s share in total vehicles sold slipped from 6.3 per cent in December 2022 to 5.5 per cent in January 2023. The slowdown comes after rapid growth compared to the period before Covid-19. EV’s share in total vehicles sold was 0.62 per cent in January 2019. Monthly sales are just over 100,000 now, as seen in chart 1 (click image for interactive chart).

The slowdown has a mix of reasons: one being new battery norms announced after a