Sales of electric vehicles (EVs) in July touched 178,948 units, marking the highest monthly sales this financial year.
This represents a 27.9 per cent increase from June, which saw 139,905 units sold, according to the Vahan data from the Ministry of Road Transport and Highways.
The strong performance in July contributed to more than one million being sold in the first seven months of the calendar year.
Prior to this, the highest was recorded in March 2024, when 213,036 units were sold, and in May 2023, 158,470 vehicles went off the shelf. The July figure marks a 53.5 per cent increase from the 116,621 units sold in the same month last year, indicating significant year-on-year growth.
Experts attribute the increase in sales to several factors, including customers purchasing ahead of the proposed expiry of the Electric Mobility Promotion Scheme (EMPS) 2024 and original equipment manufacturers (OEMs) offering discounts on vehicles.
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“Customers likely accelerated their purchase decisions because of the proposed expiration of EMPS 2024 on July 31 and the discounts offered by original equipment manufacturers,” said Preetesh Singh, specialist, CASE and alternate powertrains, NRI Consulting & Solutions.
Sales in July highlight a positive outlook for the remainder of the year, reflecting a growing consumer interest and the impact of strategic market incentives, sector experts said.
However, in three months this year monthly sales declined compared to the respective previous month. February experienced a minor decrease of 2.3 per cent from January’s sales. June saw a slight dip of 0.5 per cent from May. The most significant decline was recorded in April, with sales plummeting by 45.6 per cent from March, marking the largest monthly drop this year.
Both the highest sales and the steepest decline in sales were observed in the months following specific policy changes. In May last year, sales peaked due to a government decision to reduce the maximum Faster Adoption and Manufacturing of Electric (And Hybrid) Vehicles (FAME) subsidy for electric two-wheelers from approximately ~60,000 to around ~22,500, effective from June 1. This policy shift drove a significant increase in sales in May.
However, sales sharply went down the following month, dropping by 35 per cent.
This year, the decline in sales followed the end of the FAME subsidy on March 31 and the introduction of the Electric Mobility Promotion Scheme (EMPS) 2024, which further reduced the subsidy by half, leading to the steepest decline of the year.
The industry’s highest ever sales were recorded in March.
The EMPS scheme was initially set to expire on July 31. However, in a notification of July 26, the government extended the deadline by two months. Experts suggest many customers took their decision to purchase before this extension was announced.
First Published: Aug 01 2024 | 7:58 PM IST
