4 Emerging EV Trends Observed In 2023 A decade ago electric vehicles were seen as a fanciful scheme that did not stand a chance against traditional petrol and diesel vehicles, however, they are now among the fastest-growing segments in the automotive sector in 2023.
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A decade ago electric vehicles were seen as a fanciful scheme that did not stand a chance against traditional petrol and diesel vehicles, however, they are now among the fastest-growing segments in the automotive sector in 2023.
While EVs bring several benefits and have evolved into desirable machines today, the public perception towards electric vehicles and awareness against pollution from ICE vehicles also has a major role behind the sudden rise in EV adoption across the country. Here are 4, 2023 trends observed in this sector.
1. Sale Has Increased
Overall sales grew by a whopping 157 per cent, from 4,58,746 in FY2022 to 11,80,597 in FY2023. This was further encouraged with an increase in the number of models being offered in the electric two-wheeler and 4-wheeler brands ranging between the affordable and luxury segments. With the bulk of the EV sector being driven by sales of electric two-wheelers, India saw over 1 lakh EVs being sold every month in H2 FY 2023, MoRTH data shows. The top three players in this segment are Ola Electric, TVS Electric and Ather Energy despite the recent decrease in subsidy offered under the FAME 2 scheme.
2. Electric Three Wheeler
The growing preference for electric vehicles, especially in countries with expanding middle-class populations, is driving demand for electric three-wheelers. The report highlights the increasing awareness of emissions, lower maintenance costs, and stricter pollution standards as key drivers propelling the global market forward. Notable growth in sales during 2021-20 and government incentives in countries like India and Thailand contribute to the region's prominence in the market according to Maximizing Market Research Pvt Ltd's report.
3. Connected Electric Cars
In India, connected car technology is still in its infancy, with only 5% of vehicles equipped with infotainment systems and digital cockpits. Connectivity is primarily limited to smartphones and in-car infotainment systems. However, customer preference for connected software solutions in passenger vehicles is expected to grow significantly in the coming years, and vehicle manufacturers are aligning their strategies to capitalise on this evolution in the automotive ecosystem.
4. Foreign Players
The Indian government is working on an electric vehicle policy that would allow international car manufacturers to import battery-powered vehicles on concessional duty rates if they commit to eventually building them in India, people familiar with the matter said. For India, Tesla's investment would aid the government's push to increase the share of manufacturing in the nation's GDP while also creating jobs. India's electric car market is currently at a nascent stage with EVs accounting for just 1.3% of the total passenger vehicles sold last year, according to reports.