Subsidy halt, price rise and supply-chain bottlenecks hit EV sales in 2023

After a surge in 2022, the retail market share and sales of electric vehicles began declining in January 2023. Industry players say the dip in sales is due to the halt of FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidies, rising cost of EVs, and supply chain constraints.

The dip comes after sales hit an all-time monthly high of 119,483 units in November. EV registration in January declined over 15 per cent to 100,852 units. January sales are lower than the December figure of 102,422 units, shows data on the Vahan portal of the Ministry of Road