After brisk start, electric vehicle penetration loses momentum in FY24

Electric two-wheelers, which were expected to lead the charge, are a case in point, especially after the government sharply cut back the subsidy given to manufacturers in the middle of last year

Even as the government debates whether to continue the FAME-II subsidy for electric vehicles (EVs), the share of such vehicles in overall sales is decelerating, after witnessing a heady growth in the first few years.

The penetration of EVs — electric two-wheelers, passenger vehicles, three- wheelers and other segments collectively — in the first 10 months of FY24 has been pegged at 4.3 per cent, compared to 3.7 per cent in FY23, according to credit rating agency ICRA.

Presenting the data at a conclave of the Society for Indian Automobile Manufacturers (Siam), ICRA said the penetration of EVs