Electric car sales grow 234 percent in India, Tata Nexon and MG ZS EV emerge as the most popular

Tata Nexon EV is best selling EV with a 58 percent market share.

Highlights
  • Electric car sales in India from April to September 2021 grew by 234 percent on a YoY basis.
  • A total of 6,261 electric cars were sold in the specified period.
  • Tata Motors has been dominating the EV space with its two models Nexon EV and Tigor EV.

Though electric passenger vehicle sales are less than one percent of total passenger vehicle sales in India, at present, there is a strong inclination in the market towards electric vehicles. While we have seen only a few automakers enter this segment, sales figures for the first half this financial year (April-Sept) stood at 6,261 units, which surpasses EV sales of the previous financial year of 5,905 units. During the same period last year, i.e., from April 2020 to September 2020, the electric car sales figure for the Indian market stood at 1,872 units, which translates to a 234 percent increase Year-on-Year (YoY) for this year. This is a staggering number considering the preference Indian consumers still have for gasoline-based vehicles.

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Individual incentives and perks granted by state and federal governments under the FAME II project have also helped to raise electric car sales significantly. However, the electric passenger vehicle segment is still in its nascent stage in India at the moment. Although this EV car market accounts for less than 1% of total private car sales in India, demand for it is rapidly increasing.

Electric-powered car sales in India in H1 FY 2021-22

Total EV sales of all-electric automakers in the first two quarters of this fiscal year, especially from April to September 2021, were 6,261 units, which implies a 234 percent growth, during the same period last year. Tata Motors, MG Motors, Hyundai, and Mahindra are among the market leaders in this sector (Verito). Tata Motors has commanded the most sales in the same period with its Tata Nexon EV and other EV models. The Xpres T EV, which is a sedan option, is also available from the automobile giant, although it is only offered to its fleet clients.

Tata Motors’ EVs have maintained the growth momentum in October 2021 with 1,586 units through three models – Nexon, Tigor, and the Xpres T EV taking its seven-month (April-October) total to 6,005 units. The company expects to surpass the 10,000 unit mark by the end of this year to set a new record in the EV segment this year.

With 1,789 units sold between April and September 2021, MG Motors’ ZS EV came in second, up by over 250 percent or 1,278 units from just 511 units sold over the same six-month period, in the year 2020. The EV now has a 29 percent market share. Another Tata EV, the Tata Tigor, came in third with total sales of 801 cars in April-September 2021, showing commendable growth of 701 percent from the 100 vehicles sold in April-September 2020. The Tigor EV, which has a total market share of 13 percent now, was improved earlier this year with a stronger battery and other substantial upgrades as well.

The Mahindra Verito ranked last on the list of electric passenger vehicles, with only two vehicles sold from April to September 2021, compared to eight units sold in the same period in 2020. Further down the line, Hyundai and Kia are also planning to launch a few EVs in the coming months, which will include a low-cost electric car as well that is currently under development. While the pace of transition from traditional vehicles to EVs is much faster in two and three-wheelers, urban India is still hesitant to plug into electric cars. Gradually with time, we hope that the mindsets of these auto enthusiasts changes, as with the ever-increasing price of fuel and the environmental degradation we are facing, EVs are the need of the hour for a better future.

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