New Delhi, June 2: There has been a notable increase in the registration of electric vehicles (EVs) in India during May this year. This surge is attributed to rising fuel prices due to the ongoing conflict between the U.S. and Iran, prompting consumers to shift towards electric vehicles. Reports from Nomura and HSBC highlight this trend.
According to Nomura, electric vehicle sales accounted for 6.4% of total passenger vehicle sales in May, up from 4% in the fiscal year 2026. Meanwhile, sales of electric two-wheelers reached 8.9%, significantly higher than the previous year’s 6.5%.
The brokerage firm noted that this indicates a rapid increase in demand for electric vehicles. Similarly, HSBC reported that the recent hike in fuel prices has led to a growing inclination among customers to purchase electric vehicles.
Nomura estimates that the market share of electric two-wheelers in May was 9.3%, while electric passenger vehicles held a total share of 6.6%.
Among car manufacturers, Tata Motors has benefited the most from the rising demand for electric cars. The company recorded an 85% year-on-year increase in electric vehicle sales, with bookings for electric vehicles increasing 2.5 times over the past two months.
Nomura indicated that Tata Motors is experiencing particularly strong demand in the segment priced below ₹1.5 million and plans to ramp up its production capacity from 10,000 units per month to 15,000 units.
This shift is even more pronounced in the two-wheeler segment. In May, approximately 42,000 electric scooters were registered, with TVS Motor leading the market, followed by Bajaj Auto and Ather Energy.
According to Nomura’s report, Ather’s sales more than doubled year-on-year, helping the company secure a 16.5% market share.
Both brokerage firms believe that the demand for electric vehicles is on the rise. However, increasing commodity costs remain a concern for manufacturers.
Nomura believes that favorable policy measures and growing consumer acceptance are bringing the Indian electric vehicle market to a significant turning point.
Oil marketing companies raised petrol and diesel prices by nearly ₹8 per liter over a two-week period in April. The Indian crude basket for domestic fuel pricing has remained above $100 per barrel for three consecutive months, primarily due to the prolonged Middle East crisis, which has affected the Strait of Hormuz, a crucial transit route for 20% of the world’s oil and gas exports.
The ongoing fluctuations in peace talks between the U.S. and Iran, along with repeated ceasefire violations, have heightened uncertainty and raised concerns about further increases in oil prices.
Due to government measures aimed at protecting consumers from price hikes, Indian oil companies are currently incurring daily losses of ₹5.5 billion on petroleum product sales.
Leave a Comment