Electric Vehicle Sales India – FY2020

Around 1,56,000 Electric Vehicles were sold in India in Fy2019-20 with a YoY growth of 20%.

Electric Two Wheeler constituted to 97% of the electric vehicle sales in India. EV is in a very nascent stage in the Indian market and the government is slowly focusing to enhance the EV penetration in the subcontinent. We did highlight how the Indian government had revised the GST on EVs from 12% to 5% in 2019 (here). However; due to the lack of adequate electric infrastructure the EV sales haven’t been significant. Around 1.74 crore units Two Wheelers (gasoline powered) were sold in India for FY2019-20. But only 1.52 Lakh units Electric Two Wheelers were sold in the same time! We hope the push from the government and further breakthrough in battery technology shall help lower the costs of EVs even further and thus increase its volumes.

  • Do note that the Electric Cars Sales actually fell down by 6%! Only 3,400 Electric Passenger vehicles were sold in FY20 v/s 3,600 units in FY19.
  • Electric Buses saw a good jump of 50% YoY and sold almost 600 units in last fiscal. This was also primarily due to the push from government to induce electric buses in their fleet.

The Sales Figures was released by Society of Manufacturers of Electric Vehicles (SMEV) and do not include the sales volumes of the e-rickshaw segment. SMEV says that the electric three wheeler segment is still unorganised and almost 90,000 units were sold in FY20. “The EV industry is taking shape and we believe that despite Covid-19, FY21 will be a defining year for all EV segments,” SMEV Director General Sohinder Gill said, adding that given the right push by the government and the industry, “EV industry can spring back faster than the ailing IC vehicles segment”.

Global Passenger Vehicle Sales 2019

Major passenger vehicle markets in the world recorded a decline in 2019. The sales probably is going tumble even farther in 2020!

The biggest automobile markets in the world (likes of China & US) have been stagnant since past few years. The OEMs had thus shifted focus on developing markets like India & Russia to gain volumes and growth. However; things did not work as planned and India registered one of the highest YoY falls across the globe. India has undoubtedly been a victim of poor policy management and high taxation structure. The issues like BS6 transition, varying taxation and the economic slowdown took a toll on the automobile sales in India. The passenger vehicle sales was expected to surpass 35 Lakh units in 2019; but ended up at <30 Lakh sales figure.

Let us see on how the global markets performed in terms of passenger vehicle sales for 2019 – 

Data Source
  • China clearly was worlds biggest passenger vehicle market and sold over 2.1 crore units in 2019! However; it registered a degrowth of -9.5% in 2019 v/s 2018.
  • Passenger vehicle sales in US & Japan was almost stagnant. The scenario has been similar in the past few years.
  • India recorded a double digit decline in 2019 when compared to 2018. In terms of sheer volumes; Chinese market was over 7 times bigger than Indian market! It is anticipated that by 2030 India shall match Chinese passenger vehicle market.
  • Brazil recorded the highest YoY growth and is inching towards India’s numbers.

Global Best Selling Cars for 2019 –

Data Source
  • We have presented the Top 10 selling cars in the world in the aforementioned list. We have also added columns to highlight if the marque is selling in Indian market – And if yes; what numbers and percentage contribution to global volumes.
  • Toyota Corolla retained the tag of World’s Best Selling Car and sold over 12.3 Lakh units in 2019. In India; it could sell only 1,422 units and contributed to mere 0.12% of global sales! Unfortunately; it exits the Indian market in 2020 owing to low volumes and decreased viability (link).
  • Honda had launched the latest iterations of its global bestsellers in the Indian market in mid 2018 (CR-V) and early 2019 (Civic). However; both the models couldn’t do much to enhance Honda’s numbers in the India market and the global contribution was meager too (Civic – 0.60% & CR-V – 0.13%).
  • The numbers are a clear indication that Indian market is very unique. What works across different parts of the world; may not work in the subcontinent. The message is very clear to the OEMs – the recipe for success is completely different in India and they need to research well and launch required models.