New Delhi: Electric vehicle (EV) retail sales have faced a considerable decline in April 2024 due to the expiration of the FAME 2 subsidy, with Tata Motors leading the market with 4,956 vehicles sold. According to the Federation of Automobile Dealers Associations (FADA), the market has experienced a challenging period with a significant drop in EV sales across various segments.
FADA President Manish Raj Singhania commented on the data, stating, “The drop in EV sales across various segments in April is primarily due to the expiration of the FAME 2 subsidy, which led to increased EV prices. This increase has made EVs less affordable, contributing to the significant decline in retail figures on a MoM basis. The electric two-wheeler segment fell over 50%, while three-wheeler sales saw a decrease of over 30% and passenger vehicles fell by 22% on a MoM basis.”
He further elaborated on the adverse effects of the new subsidy scheme, “The new electric mobility promotion scheme, when compared to the FAME 2 subsidy, is less favorable across the board for two-wheelers, three-wheelers, and passenger vehicles. This situation has placed the industry in a challenging position, impacting the affordability and accessibility of EVs for consumers.”
Singhania emphasized the need for a revised support framework to ensure India’s transition to clean mobility remains steady and beneficial to both consumers and the environment.
Electric Passenger Vehicle Retail in April 2024:
- Tata Motors: 4,956 vehicles sold
- MG Motor: 1,203 vehicles sold
- Mahindra: 629 vehicles sold
- BYD: 138 vehicles sold
- PCA Automobiles: 128 vehicles sold
Despite the challenges posed by rising costs due to subsidy changes, Tata Motors continues to lead the market in EV sales, demonstrating its strong presence and adaptability in the rapidly changing landscape of India’s EV market.
