2023 has been very prosperous for the EV market, with over 12 lakh EVs sold. India grew 174% YoY in EV sales. To keep everything in context, Indians brought over 3 times more EVs in the year 2023 compared to last year 2022.
The highest electric vehicle category sold is electric 2-wheelers, which is about 8 lakh, followed by electric 3-wheelers, and the least sold vehicle category is electric cars. An interesting fact from last year’s EV sales report was that, despite Uttar Pradesh ranking the highest in EV sales numbers, the true EV adoption is led by the southern states like Maharashtra, Karnataka, Telangana, Tamil Nadu, etc.
In this article, let’s learn more about that and identify what true EV adoption means and what makes southern states EV-friendly.
The True meaning of EV adoption:
If we want to identify the true intensity of EV adoption, we need to go with the number of personal electric vehicles sold because if we include public transport, it wouldn’t be a fair comparison between the different vehicle categories.
The true driver of the EV revolution is the personal vehicle segment, as they will bring the right profits into the market and bring the expected change. That doesn’t mean public vehicles don’t require electrification; they are equally responsible for the EV revolution, but private vehicles always have more preference.
In a similar way, turning private vehicles into electric ones is equally difficult due to higher costs and various other issues.
Read this article: Condition of Electric Vehicles in India. To understand what’re the issues that make EV adoption so difficult.
Why public EVs have such a high volume in North India:
Public transport has been rising since 2017 in states like UP, Delhi, etc, and the EV-3wheeler adoption never looked back after that. Here are the key reasons for the rising EV 3-wheeler adoption in North India.
Manufacturing Hub:
Northern India is the manufacturing hub of electric 3wheelers, which has become the primary reason for North India’s high concentration of electric rickshaws. Vise versa, most electric scooter companies are based in the south, which shows the clear contrast between lesser E-2Wheeler sales in the north and the lack of electric scooters in south India.
Favourable economics:
- Lower operating costs: E3Ws have significantly lower running costs than traditional petrol or CNG three-wheelers. Electricity costs are much cheaper than fuel, and EVs require less maintenance due to fewer moving parts. This translates to substantial savings for drivers and fleet owners.
- Government incentives: The Indian government offers subsidies and incentives for E3W purchases, making them more affordable. The FAME II scheme, for example, provides financial assistance to E3W manufacturers and buyers.
Suitability for local needs:
- Last-mile connectivity: E3Ws are ideal for navigating narrow lanes and congested streets, making them perfect for last-mile delivery and passenger transport in densely populated urban areas. They are often used for ferrying goods and people to and from main roads, railway stations, and markets.
Cultural Impact:
- Northern states have higher population densities than southern states, which increases the scope of cheaper and reliable public transport, and that’s where the electric 3-wheelers come in.
The electric 3-wheelers bring in affordability due to their lower operating & maintenance cost and cheaper riding charging, which creates a win-win situation for both rider and rickshaw owner.
