In Pictures: India’s EV market gaining momentum

NEW DELHI -- In the smoggy capital city of New Delhi, there is an increasing number of green-plated cars on the roads. These are electric vehicles and even outside of Delhi, they are gaining popularity.

Combustion-engine vehicles are still the norm in the country, but EVs are now a common sight in major cities. Ride-hailing services that employ EVs like BluSmart are also increasingly common.

Approximately 90,000 electric cars were sold in fiscal 2023, according to India's Federation of Automobile Dealers Associations (FADA). That figure is still tiny -- at 2% of the total number of vehicles sold in that year -- but it represents a near doubling from the previous year.

The Indian government, grappling with both air pollution and a trade deficit from crude oil imports, has been encouraging EV adoption by offering subsidies.

Maruti Suzuki India, the largest manufacturer in the Indian passenger car market with a 40% market share, is ramping up factory construction to launch EVs within fiscal 2024. Chinese manufacturers like BYD are among prominent players in the global market but their India penetration is still low, partly due to tensions between the two governments.

As such, India's largest conglomerate Tata Motors has been taking the lead in the EV passenger market, with a 70% share. It opened an EV-only showroom near New Delhi in January.

Customers were contemplating EV purchases at the store in June. A customer told Nikkei Asia, “We’re thinking of buying a model priced around 1.2 million rupees ($14,000). Although its price is higher than regular gasoline cars, the overall running costs will be lower.”

Electric two-wheelers are also increasing in popularity. The total units sold in fiscal 2023 approached 950,000. Ola Electric