BloombergNEF: Electric vehicle sales in India tripled in 2022

Bloomberg ($):

Electric passenger vehicle sales in India tripled last year as demand for affordable, compact sports utility vehicles surged, according to a report by BloombergNEF.

The advent of ride-sharing startups such as BluSmart Mobility, Lithium Urban Technologies and Evera, which operate all-electric fleets, has also boosted demand, according to the report published on Wednesday.  

Smaller SUVs are becoming popular as they easily maneuver through India’s potholed roads and bad traffic, while offering aspirational buyers a status symbol. Compact electric SUVs are built on small-car platforms, making them more cost-effective than larger equivalents that require bigger and costlier battery packs.

Still, India is lagging behind nations like China and the US in adopting electric transport. Most local carmakers have been hesitant to make the switch because electric cars are costlier than internal combustion engine vehicles, while lack of public charging stations also deter buyers. Electric vehicle sales in India stood at 49,800 last year, accounting for just 1.3% of 3.8 million passenger vehicles sold, according to the report.

That has created room for foreign carmakers to expand in India’s nascent EV market. Warren Buffett-backed BYD Co. seeks to capture 40% of India’s EV market by 2030, while SAIC Motor Corp. is planning to launch three EVs by the end of 2024.

[Ragini Saxena]

More: Growing Love for Electric SUVs Tripled India’s Lagging EV Sales