HomeGizmochinaIndia’s EV Market Sees 223% Growth in 2022

India’s EV Market Sees 223% Growth in 2022

The Indian light vehicle market experienced a remarkable 23% growth in 2022, reaching 3.8 million units, according to the latest Canalys Automotive Analysis data. In light of the growing awareness of electric vehicles in the country, the electric vehicle (EV) market share in India saw a stunning 223% increase last year, with 48,000 EVs added to the market.

Canalys Automotive Analyst, Ashwin Amberkar, highlights that there’s quite a positive outlook for the automotive industry in India, thanks to growing consumer buying power and pent-up demand. The Indian EV market is still in its early stages, but Tata dominates the market with 86% share from their Nexon EV and Tigore EV models. Other car brands, such as MG and Hyundai, are offering premium EVs that attract eco-conscious and tech-savvy buyers.

While luxury brands like Audi, BMW, and Mercedes-Benz sell popular EVs in India, they account for only a small portion of the market. However, luxury brand sales still grew by 34% in 2022, reaching 36,000 units. The government’s FAME India Phase II scheme will continue to promote widespread EV adoption through incentives for automakers, until its expiration in 2024. Canalys predicts that the Indian EV market will reach 300,000 units by 2025, representing 6% of the total light car market and experiencing a 59% compound annual growth rate.

Maruti Suzuki, the leading Indian car maker, plans to focus on manufacturing hybrids and alternative fuel vehicles in 2023, with their first electric SUV launching in 2025. This puts them behind Tata, who is quickly establishing a presence in the mid-market EV market, and Hyundai, who has already launched their second electric SUV. Other major automakers, such as Kia, MG, and BYD, have launched EVs in India and plan to proliferate their offerings by 2025. However, brands like Toyota, Honda, Volkswagen, and Renault, who already have a global presence in the EV market, are yet to launch any EVs in India, risking missing out on a potential loyal customer base that can drive a business for years.


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