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 * India surpasses China as the largest market for electric three-wheelers,
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INDIA SURPASSES CHINA AS THE LARGEST MARKET FOR ELECTRIC THREE-WHEELERS, REPORTS
IEA

Krishnendu Bandyopadhyay / TNN / Updated: Apr 25, 2024, 21:53 IST
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India emerges as the leading market for electric three-wheelers, surpassing
China in 2023 with over 580,000 sales. The country's electric vehicle landscape
thrives due to government incentives and policy support, setting the stage for a
significant shift towards electric mobility.
The International Energy Agency's (IEA) latest Global EV Electric Vehicle
Outlook reveals India's remarkable ascent as the foremost market for electric
three-wheelers (3Ws), surpassing China in 2023 with over 580,000 sales. The
report underscores the country's burgeoning electric vehicle (EV) landscape,
driven by substantial government incentives and policy support.


According to the IEA, the surge in electric vehicle sales remains robust
globally, fueled by the rapid growth of major emerging economies and
advancements in key markets. Electric car sales are projected to continue their
upward trajectory, potentially reaching around 17 million in 2024, constituting
more than one-fifth of all cars sold worldwide.
In India, the electric vehicle market witnessed significant milestones in 2023.
Notably, approximately 1.3 million electric two-wheelers were sold in India and
Southeast Asia, representing 5 per cent and 3 per cent of total sales,
respectively. Moreover, one in five three-wheelers sold globally in 2023 was
electric, with nearly 60 per cent of these sales originating from India, buoyed
by the government's Faster Adoption and Manufacturing of Electric Vehicles (FAME
II) subsidy scheme.
The report highlights India's dominance in the electric 3W segment, with sales
surpassing those of China. India's electric 3W market witnessed a 65 per cent
surge in sales compared to 2022, reaching over 580,000 units in 2023. This
growth can be attributed to government incentives and a consequent reduction in
the cost of ownership of electric 3Ws. Conversely, sales in China experienced an
8 per cent decline in 2023, with 320,000 units sold, relegating the country to
the second-largest electric 3W market.

    
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India, along with China and Asean countries, emerges as a global leader in the
two- and three-wheeler (2/3W) market. In 2023, these markets collectively
accounted for staggering sales figures, indicating a significant shift towards
electric mobility.
The IEA report also highlights India's strides in electric two-wheeler sales,
marking a 40 per cent growth compared to 2022. The market is predominantly
dominated by five major domestic manufacturers, which collectively command over
75 per cent of sales.


Furthermore, the report sheds light on India's EV policy landscape, emphasizing
the critical role of government initiatives such as the FAME II scheme and the
Production Linked Incentives (PLI) scheme in driving EV adoption. However,
concerns loom over the potential impact of subsidy reductions in future
policies, which could influence growth trends.
Aarti Khosla, Director of Climate Trends, hails India's leadership in electric
3W sales as a significant achievement, emphasizing the pivotal role of these
vehicles in decarbonizing last-mile connectivity and small goods deliveries.
The IEA report underscores the imperative for a comprehensive transition to
electric mobility, extending beyond two- and three-wheelers to encompass other
vehicle segments, including trucks, to achieve climate change goals.
Amit Bhatt, MD at the International Council on Clean Transportation, emphasized
India's rising momentum of transportation electrification, led by two- and
three-wheelers. While acknowledging the economic benefits of battery electric
vehicles, he stressed the necessity of extending this transition to trucks to
significantly impact climate change. A recent ICCT report suggests that India
must electrify its entire vehicle fleet, including trucks, by 2050 to achieve
the net-zero target set for that year.


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