Despite high expectations, electric vehicle (EV) sales have fallen short during this year’s festive season. However, industry experts remain optimistic that the situation will improve in the days to come. Ayush Lohia, Chief Executive Officer of Lohia Auto, spoke in an interview about the challenges faced by the EV market and the potential for growth in both the two-wheeler and three-wheeler segments.
Lohia acknowledged that the numbers have not met expectations, citing hindrances that have hindered progress. One major challenge is the reduction in the Faster Adoption and Manufacturing of Electric Vehicles (FAME) subsidy, which has decreased by 30-40% in the two-wheeler segment. Additionally, the delay in implementing the production linked incentive (PLI) scheme has contributed to the stagnant growth.
The decrease in subsidies and uncertainty surrounding the future of the FAME-III scheme post-March 2024 have also impacted consumer perception. If reports of the discontinuation of the FAME scheme are accurate, it could lead to a drastic decline in EV sales as they would no longer be competitive with internal combustion engine (ICE) vehicles.
While the industry sold approximately 77,000 units of electric two-wheelers in October last year, this year has seen a decline with around 74,000 units sold in the same month. However, industry experts remain hopeful that the sector will rebound as challenges are gradually addressed.
Despite the current setback, the long-term prospects for electric vehicles remain promising, driven by increasing environmental concerns and the ongoing efforts to reduce carbon emissions. As technology continues to advance and charging infrastructure improves, the adoption of EVs is expected to gain momentum in the coming years.
Why have electric vehicle sales not met expectations during the festive season?
The reduction in the FAME subsidy, delay in the PLI scheme, and increased costs are some of the factors that have impacted EV sales during the festive season.
What is the main challenge faced by the industry?
One of the main challenges is the uncertainty surrounding the future of the FAME-III scheme post-March 2024, which could significantly impact the competitiveness of electric vehicles compared to internal combustion engine vehicles.
Is there hope for improvement in the electric vehicle market?
Despite the current challenges, industry experts believe that the long-term prospects for electric vehicles remain promising. As technology advances and charging infrastructure improves, the adoption of electric vehicles is expected to gain momentum in the coming years.
What is the current state of electric vehicle sales compared to last year?
Electric vehicle sales have experienced a slight decline compared to the same period last year. Approximately 74,000 units of electric two-wheelers were sold in October this year, compared to 77,000 units in October last year.