EVs have steady fledgling market, hybrids see rapid growth in sales

India is still a fledgling market for electric vehicles (EVs) but sales of hybrids in the country, including strong hybrids and plug-in variants, has been growing at a rapid rate.

Sales figures of hybrids surged by 2.5 per cent in the first half of 2024 (H1 2024), compared to 2 per cent in 2023, data from industry sources shows. If the numbers are lesser than those of battery electric vehicles (BEVs), it is because the latter have the advantage of road tax exemption and a low GST rate of 5 per cent in many states.

Notably, despite hybrids registering a rise in the domestic market in terms of year-on-year sales, the number of mainstream hybrid models in India are still lower than EV models.

THE GLOBAL SCENE

Meanwhile, the scene is not much different globally right now. Although strict emission norms and organised vehicular policy in a growing number of nations continue boosting sales of EVs, the hybrid market has been growing at a more rapid speed.

Data available from Nomura Research Institute shows that sales of hybrid vehicles have increased consistently since 2021 in several leading markets such as China, Korea, Japan, Korea, France, the United Kingdom and the United States. The trend highlights an inclination of the market for this auto segment.

China has witnessed a phenomenal increase in hybrid sales in a span of around three years, with penetration rising to nearly 19.9 per cent in the first half of 2024 from 5.3 per cent in 2021. In Korea, the increase in market penetration for the hybrid segment was impressive, too — from 11.8 per cent in 2021 to 25.2 in the first half of the current calendar year. All other leading automobile markets in the world show popular acceptance for the hybrid technology although EVs sales, too, continue picking up.