India’s full electric vehicle (EV) sales rose on the year in April, but fell on the month for the first time since December 2022, likely because the government suspended subsidies to two manufacturers. 

Indian EV manufacturers sold 111,155 vehicles in April, according to data from government website Vahan, up by 43pc from 77,496 in April 2022 when the automotive industry was struggling with supply and demand challenges arising from a shortage of semiconductor chips and a repo rate hike by India’s central bank. 

But April sales fell by 22pc from a revised 142,023 units in March, largely coming from a sharp decline in two-wheeler sales. The month-on-month decline came after the government suspended subsidies to two manufacturers, citing misappropriation. 

Two original equipment manufacturers had their Faster Adoption and Manufacturing of Electric Vehicles (Fame 2) subsidies suspended earlier this year because of complaints about violations of the Phased Manufacturing Programme (PMP), minister for heavy industries Krishan Pal Gurjar told the Lok Sabha — the lower house of parliament — on 21 March, without naming the companies or providing other details. The government launched the PMP last year to promote domestic production of EVs, their spare parts and assemblies. The PMP introduced a graded customs duty structure for EVs and their parts. 

Sales of two-wheelers continued to dominate the Indian EV market in April, with the 66,464 units sold comprising nearly 60pc of total sales. Two-wheeler sales rose by 25pc from 53,262 units in April 2022, but fell by 23pc from 86,194 units in March. 

Indian EV registrations peaked in 2022 with over 1mn vehicles registered, compared with 325,414 in 2021, 122,065 in 2020 and 164,144 in pre-pandemic 2019, according to Vahan data. Indian EV sales also rose to an all-time high during the 2022-23 fiscal year at 1.18mn units.