Click it and Unblock the Notifications
India Sees Electric Vehicle Sales Drop Post-FAME Scheme Withdrawal
Electric vehicle sales, once expected to surpass petrol and diesel vehicles, have seen a notable decline over the past four months. The absence of the 'FAME' (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) scheme is cited as the primary reason for this downturn. Data from the Federation of Automobile Dealers Associations (FADA) supports this trend.
In April 2024, passenger electric vehicles recorded their highest sales compared to the previous year. Specifically, 7,415 units were sold in April 2024, up from 6,039 units in April 2023. This represents a significant increase in sales during that period.
However, the sales momentum did not continue. In May 2024, there was a slight decline of 1.24% in passenger electric vehicle sales, with units sold dropping from 7,734 to 7,638. This downward trend persisted in the following months.
June 2024 saw a more pronounced decline with a 13.51% decrease in sales compared to June 2023. The number of units sold fell from 7,971 to 6,894. July experienced a smaller drop of 2.92%, with sales decreasing from 7,768 units to 7,541 units.
August continued this trend with a notable 10% decline in sales year-over-year. Sales dropped from 7,040 units in August 2023 to just 6,338 units in August this year. Tata Motors, a leading player in the electric car market, reported retail sales of 4,086 units in August, down from 4,783 units in August last year—a decrease of 14.57%.
Mahindra's electric car sales also declined significantly by 22%, dropping from 406 units to 317 units. Despite these declines among Indian manufacturers, Chinese automaker MG saw an increase in its electric car sales. MG sold 1,353 units in August this year compared to just 1,208 units in August last year.
Industry Experts' Views on Declining Sales
Experts attribute the decline in electric vehicle sales primarily to the absence of the FAME scheme. They point out that apart from a reduction in GST to 5%, there are no other substantial benefits or subsidies for electric passenger vehicles.
Nitin Gadkari, Minister of Road Transport and Highways, recently commented on this issue at an event. He stated that while GST on petrol and diesel vehicles is at 48%, it is only 5% for electric vehicles. Gadkari added that expecting further subsidies after receiving such a GST reduction might be unrealistic.
This statement suggests that future subsidies for electric vehicles may not be forthcoming. Consequently, there are concerns that the sales of electric passenger cars could continue to decline if additional incentives are not introduced.
Continue with Google