As fuel prices soar, sales of electrics increase too - Times of India

As fuel prices soar, sales of electrics increase too – Times of India


NEW DELHI: As fuel prices skyrocket and concerns grow over the running cost of petrol and diesel vehicles, the electric vehicles market has quietly started to build up. As fiscal 2021-22 came to a close, the green brigade — still small in numbers — seems to be coming of age, also charged by government subsidies.
Though still a shadow of their fuel-guzzling peers, electrics have gradually started to pick up in numbers, despite battling handicaps such as absence of a robust country-wide charging network and distribution reach, a relatively weaker model line-up, inadequate component supplier set-up, and slow-developing investment pipelines.
According to auto retail numbers collated by the road transport & highways ministry as well as dealers’ body Federation of Automobile Dealers Association (FADA), sales of electric two-wheelers shot up 5. 6 times in FY22 to close the year at 2. 3 lakh units against 41,046 units in the previous fiscal. The growth is even more remarkable when one considers that less than 25,000 electric two-wheelers were sold in FY20. However, it’s still a small speck given that nearly 1. 2 crore petrol two-wheelers were also sold.
In cars and SUVs, the growth has been equally strong, though absolute volumes here are still to reach significant numbers. Four-wheeler passenger vehicle retail sales are up more than three times in FY22 at 17,802 units, against 4,984 units at the close of FY21 and 2,280 units in FY20. This number is likely to see a big push in the current fiscal as companies such as Tata Motors, M&M, Hyundai and Kia drive in new electrics, while Maruti and Toyota work on their green debutant. But perhaps the biggest push has been seen in the three-wheeler category, where EV sales have really caught up and are nearly half of total industry volumes (including petrol, CNG, and diesel). The electric three-wheeler sales doubled in FY22 to close the year at 1. 78 lakh units (against 88,391 units in FY21), and contributed 45% to the total three-wheeler retail of 3. 9 lakh units.
Naveen Munjal, whose Hero Electric is the biggest EV two-wheeler company in India, said that the “era of elec- trics” has started to usher in. “While it is still early days, the time has come when electrics are coming of age, and are set to witness strong growth. We expect the volumes to grow multiple times from where we finished in FY22,” Munjal said, adding that Hero Electric is working on new investments and products as it ramps up production on its own and also in partnership with M&M. Ravneet S Phokela, chief business officer at Ather, said that the electric growth has been led by scooters, where EVs have been gaining share (compared to petrol vehicles) every month. “Electric scooters as a percentage to total scooter sales are now at 12%, and this used to be 11% in the past month, and around 9% earlier. We have been growing, the only concern being supply chain constraints. Ather is able to provide only 25% of what the demand is, and we have shortages of semiconductors and battery cells. ”


Source link

Leave a Comment

Your email address will not be published.