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India's EV Market 2023: What Lies Ahead? Challenges, Opportunities & More

Updated: Jan 20

India’s tryst with electric vehicles in 2022 turned out to be something that the country can cherish and look up to for years to come.


It had its lows, but they were mitigated by a large margin because of all the ups that it had in the last year.


Whether it was the customer sentiment around EVs, India Inc’s participation in the electric market, the government policies and its swift implementation, or the newer and evolved electric vehicles heading into the Indian markets, it was somewhat perfect.


So, when we step into 2023, it is clear that the expectations this year have risen manifold. Industry experts, insiders, and customers alike are excited to see what the new year has to offer when it comes to electric vehicles.


Also Read: 5 EV News That Show Their Bright Future in India


India’s Tryst With EVs in 2022

Ev charging station point
How India adopts EVs in 2023?

It’d be an understatement to say that 2022 was a good year for the EVs in the country. As mentioned earlier, the year saw the demand for EVs soar. There are various factors that are to be accredited for the same.


Electric vehicles saw touching the 1 million unit sales milestone in the calendar year 2022, accounting for 4.7% of the total automotive sales. According to the data available on the government’s Vahan portal, about 1,003,000 EVs were registered with regional transport offices till 31st December 2022.


Although the caveat here might be that out of these sales numbers, most of it is due to the sales numbers of electric two and three-wheelers.


This is a threefold increase from the preceding year, which saw 332,000 units sold in the same period.


The rise in sales can be attributed to significant Business-to-business purchases by EV fleet operators, including BluSmart. Furthermore, the robust adoption of the FAME II policies and a rise in the development of the charging infrastructure is another few reasons.


In fact, four-wheelers are now being welcomed by Indian consumers. Most of the credit goes to bigger players adopting electric vehicles, experimenting and addressing pain points like range anxiety and lack of choices for the customer quite effectively.


The Trends To Look Out For in 2023

electric vehicle cab blusmart charging
A Bright 2023 Ahead?

2023 will be an altogether different ballgame. The EV manufacturers will be ready with more options for their customers, better arrangements for business-to-business requirements, and a better-charging infrastructure in place.


Referring to the data above, one can realize the potential that the earlier-nascent EV industry has now been able to deliver quite consistent year-on-year growth. Moreover, another interesting aspect of it is that most of the growth has taken place in the last 2 fiscal years.


According to reports, the Indian EV market was valued at $1.435 billion in 2022, which is expected to reach $15.3 billion by 2027, showcasing a strong CAGR of 47.09% in the 2022-2027 period.


The coming year will also be a stepping stone for India’s ambitious targets to account for EVs for 30% of its mobility requirements by 2030. It is estimated that EV retail sales will increase to 2.2 million units in 2023, according to the Society of Manufacturers of Electric Vehicles (SMEV), hence creating an opportunity for EV manufacturers and retailers alike.


You Might Also Like: EV Financing in India 2023: Making EVs Accessible for India


Opportunities For EVs in 2023 in India

While the previous year ensured that EVs got a seat in the same room, as the other participants of India’s automotive sector, 2023 will ensure it gets to sit on the same table as the popular guys.


It will be a defining year for the EV industry. Given the pace of growth and the policies in place for EVs, we can expect the oncoming year to enable EVs to get better and penetrate the Indian automotive market further.


Furthermore, the year 2022 saw many states rolling out their EV policies. Hence, the year 2023 will also be when we might see these policies being executed and hence garnering some great results for the entire country.


Another aspect that might turn the tide for the EV industry would be the localization of battery manufacturing, within the country. The OEMs are increasingly figuring out ways that can lead to manufacturing EV parts and batteries locally, hence reducing costs. This will also take away the initial price hiccup that EVs tend to face in the price-sensitive Indian automotive market eventually.


One more interesting aspect that can see a rise in EV adoption is major tech companies and banks taking significant steps in promoting EVs amongst their employees and stakeholders.


According to an Economic Times report, some of the biggest companies in India are implementing policies that encourage employees to buy EVs. Meanwhile, other firms are incorporating electric vehicles in their employee transportation fleet.


Here’s how BluSmart is helping businesses become sustainable by integrating EVs as a way of mobility.


What’s In it For The Customers?


One thing that’s certain is that 2023 is going to be an exciting year for customers who are looking for EVs. Especially, the personal vehicle segment which is seen an unprecedented amount of models lining up, making the customers spoilt for choices.


These carmakers are showcasing their prowess in producing some high-quality and high-performing electric vehicles in the country. As these models tend to enter the Indian markets, the eventual competition is expected to bring the initial prices of EVs down.


The adoption of EVs is going to be higher in 2023, which will also provide Indian consumers with better financing options and lucrative interest rates.


Suggested For You: Mass Adoption of EVs in India: A Utopian Scenario?


Conclusion: A Happy New Year For EVs in 2023!

Now, we wouldn’t want to paint a utopian picture for electric vehicles in 2023, but the prospects do look promising.


However, the manufacturers, governments, and, in fact, the customers need to come together to ensure that India becomes the place that successfully leads the mass adoption of EVs in the world.


Such a large challenge would require all the stakeholders to work together. We, at BluSmart, are ready to help India go electric, one cab ride at a time. While ensuring that India has a sustainable future, we’re also ensuring that the Indian customer doesn’t have to face the drawbacks of the monopolies of the giant cab aggregators.


Let’s make 2023 an electrifying year. Together.


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