Governments around the world are rightly taking every measure at their disposal to encourage people to choose electric vehicles over gasoline-powered vehicles, even if it means subsidies. A similar move in India has crossed a new milestone. With the number of electric vehicle sales in India exceeding the one-million mark, the government cannot afford to cut subsidies now.

Electric vehicles have been around for some time, but in India, they still feel like a fairly new concept. However, in 2022, the segment managed to surpass the 1 million mark .This shows us that the country has the potential to become a major player in the electric vehicle segment in the future – but only if electric vehicle policies are improved and not cut, even if this means continuing subsidies.In the US, buyers of electric vehicles can claim tax credits, while in the EU, subsidies for electric vehicles are available. India can learn from such measures and continue the existing subsidies.

Policy measures and consumer incentives have been a key reason for the success of electric vehicles. Fuel prices can also encourage people to choose electric vehicles.India has so far managed to sell over 21 lakh electric vehicles, of which 10 lakh sales came in 2022 alone. To put things in context, however, this number only constituted 4.7% of all vehicle sales achieved in India shows that India still has a long way to go in the electric vehicle segment.

CEEW Center for Energy Finance A recent study found that markets offering subsidies experienced twice the growth in the electric vehicle segment compared to markets without subsidies.With electric vehicle sales in India exceeding the one-million mark, the government cannot afford to reduce subsidies. In India’s electric vehicle scene, sales have so far been primarily two-wheelers. Two-wheelers accounted for 62% of all electric vehicles sold in 2022 .