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Navigating 2023 EV Dreams: Europe vs. India in Focus

On a year-on-year basis, India’s EV sales in October 2023 witnessed a high increase of 16.13% when compared to the same period in 2022.

by Aishwarya Saxena
EV Sales Trends in 2023

Committed to support sustainability and green mobility, Europe has shown tremendous sales results that showcase a high penetration of electric vehicles in their automotive segment. On the other hand, India has recently witnessed a new surge in EV sales in a decade only.

On a year-on-year basis, India’s EV sales in October 2023 witnessed a high increase of 16.13% when compared to the same period in 2022.

In a comparative analysis of EV Sales Trends in Europe & India in 2023, some distinct interesting differences and similarities between the two markets were witnessed that were influenced by economic, policy, and consumer behavior factors.

Factors Driving EV Sales Trends in Europe & India in 2023


  1. Market Growth and EV Adoption: Europe experienced a significant increase in EV adoption in 2023. Electric car sales were expected to continue strongly, with a projection of 14 million sales by the end of 2023, representing a 36.3% year-on-year increase.
  2. Policy and Incentives: European countries have adopted stringent CO2 standards aligned with their 2030 goals, contributing to the acceleration of EV adoption. The implementation of emissions standards and government incentives played a crucial role in this growth.
  3. Electric Two and Three-Wheelers: While the focus in Europe has been predominantly on electric cars, the electrification of two and three-wheelers is more pronounced in emerging markets and developing economies.
  4. Commercial Vehicles: The commercial vehicle segment, including electric buses and medium- and heavy-duty trucks, also saw increased electrification in Europe, with electric light commercial vehicle sales growing by more than 90% in 2022.
  5. Supply Chain Initiatives: The European Union has focused on building resilient EV supply chains, aiming to meet a significant portion of its battery demand through domestic manufacturing by 2030.

Electric Three wheelerIndia

  1. Market Growth and Size: The Indian EV market was estimated at USD 5.61 billion in 2023 and is expected to grow significantly by 2028. The market has shown a strong growth trajectory, supported by government policies and programs​​​​.
  2. Dominance of Two-Wheelers and Three-Wheelers: The Indian market is largely driven by electric two-wheelers and three-wheelers due to their affordability and suitability for Indian road traffic conditions​​​​.
  3. Fuel Prices and Cost Reductions: Rising fossil fuel prices and the declining cost of EV batteries are major factors driving EV adoption in India. The reduced total cost of ownership makes EVs more attractive despite their higher upfront cost compared to fossil fuel-powered vehicles.
  4. Safety Concerns and Market Challenges: Safety concerns, such as fire hazards in electric two-wheelers, have slightly restricted market growth. The lack of a well-established EV ecosystem poses challenges to widespread adoption in India.
  5. Government Support and Targets: The Indian government has set ambitious targets for EV penetration as part of its efforts to reduce carbon emissions and reliance on imported crude oil.

Comparative Analysis of Electric Vehicles Market in Europe & India 

  • Focus on Vehicle Types: Typically, Europe’s EV market is more focused on passenger cars and commercial vehicles, while India’s market is dominated by two-wheelers and three-wheelers due to cost-effectiveness and practicality in dense urban environments.
  • Government Policies: Both regions benefit from strong government support, but the nature of this support varies. Europe emphasizes emission reductions and supply chain resilience, while India focuses on subsidies, tax advantages, and manufacturing incentives.
  • Market Maturity: Europe’s EV market is more mature with a broader range of vehicle types and a significant shift towards electric cars. India, while experiencing rapid growth, is still in an earlier stage of EV adoption, concentrated primarily in the two and three-wheeler segments.
  • Consumer Drivers: In Europe, environmental concerns and policy incentives drive EV adoption. In India, economic factors like fuel prices and vehicle affordability are key drivers.
  • Challenges: Europe faces challenges in scaling up infrastructure and supply chains to meet growing demand. India’s challenges include safety concerns, consumer awareness, and the need to establish a more robust EV infrastructure.

EV Sales Trends in Europe & India in 2023

SalesTo provide a detailed analysis of the types of electric vehicles (EVs) and EV Sales Trends in India & Europe in 2023, let’s delve into the specific segments and their sales figures that include,


  1. Total EV Sales: Electric car markets saw exponential growth, with over 2.3 million electric cars sold in the first quarter of 2023 alone, a 25% increase from the previous year.
  2. Battery Electric Vehicles (BEVs): In 2022, BEVs reached a market share of 14% of all new car sales, a significant increase from previous years. This trend is likely to continue into 2023, reflecting an increasing shift towards fully electric vehicles.
  3. Hybrid Vehicles: Hybrids, including plug-in hybrids (PHEVs), have been popular in Europe. In 2023, hybrid-electric vehicles secured nearly 29% market share, indicating their significant presence in the European market.
  4. Commercial Vehicles: The electric light commercial vehicle (LCV) segment saw more than 90% growth in 2022, a trend that likely continued into 2023. Sales of electric buses and medium- and heavy-duty trucks were also on the rise.


  1. Total EV Sales: By the end of FY2023, the cumulative EV sales in India in October reached approximately 1.39 lakh units. Annual EV sales crossed 12 lakh vehicles in FY2023 till now, with electric two-wheelers (E2Ws) accounting for more than 60% of these sales.
  2. Electric Two-Wheelers (E2Ws): Sales for the E2W segment recorded a 210% increase in FY2023 over FY2022. E2Ws are the most dominant segment in the Indian EV market.
  3. Electric Three-Wheelers (E3Ws): The combined sales of passenger and cargo E3Ws recorded a 126% increase in FY2023 over the previous year. This segment, particularly passenger E3Ws, held about 29% market share.
  4. Electric Cars (E-Cars): E-car sales registered an increase of more than 150% in FY2023 compared to FY2022. Tata Motors dominated this segment, accounting for more than 75% of the market share.
  5. Electric Buses (E-Buses): E-Bus sales witnessed a 62% increase in FY2023 over the previous year. They represent a smaller segment of the market but are growing rapidly.

Comparative AnalysisEurope Sales

  • Market Composition: While comparing EV Sales Trends in Europe & India in 2023, Europe’s EV market is more diversified across various vehicle types, with significant shares in BEVs, PHEVs, and commercial vehicles. In contrast, India’s EV market is heavily skewed towards two-wheelers and three-wheelers, reflecting the affordability and practicality of these vehicles in the Indian context.
  • Growth Trends: EV Sales Trends in Europe & India in 2023 have recorded a high jump this year, but the types of vehicles leading this growth differ significantly. Europe’s growth is more pronounced in the car segment, both BEVs and PHEVs, while India’s growth is led by two-wheelers and three-wheelers.
  • Commercial Vehicles: The commercial EV segment in Europe is showing considerable growth, which is not as prominent in India’s current EV market, though electric buses are gaining traction.
  • Market Drivers: The drivers behind these EV Sales Trends in Europe & India in 2023 also vary. In Europe, environmental concerns, fuel efficiency, and emissions regulations are key factors, while in India, cost-effectiveness, traffic congestion, and rising fuel prices are major considerations.

Final Thoughts                                    

EuropeEV Sales Trends in Europe & India in 2023 display distinct characteristics in terms of the types of vehicles sold, influenced by regional preferences, economic factors, and policy frameworks.

Europe exhibits a more balanced and mature EV market across different vehicle types, whereas India’s market is primarily driven by economic considerations favoring two-wheelers and three-wheelers.

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