The ongoing fiscal has probably seen one of the highest new vehicle launches across various product segments.
Electric two-wheeler sales are undeniably in the fast lane. A closer look at the sales for YTD shows around 272,074 electric two-wheelers were sold in the first four months of FY2024, which translates to almost 37 percent of the electric two-wheelers sold in FY2023. This further roughly can be broken down to around 68,018 unit sales every month. All of this is despite the FAME 2 revision, which sees many popular models earlier sold not being eligible for subsidies.
One has to also take into account the fact that there was advance buying in May on the back of a reduction in FAME 2 subsidies. Hence, for June, the sales of electric two-wheelers were comparatively lower than usual. But in July, there has been a significant pick-up from the ‘temporary blip’ in June.
Ola Electric continues to top the charts
In terms of individual performance, Ola Electric continued to retain market leadership with sales of 19,237 units in July, followed by TVS Motor Co with 10,330 units and Ather Energy with 6,607 units.
Looking at the YTD FY2024 performance, Ola Electric sold 87,475 units, TVS Motor Co 47,295 units, and Ather Energy 34,350 units. The trio now account for over 60 percent of the total two-wheelers sold in the country. Interestingly, they also have the lowest possible models on sale compared to many of the other brands in the list.
In terms of state-wise performance, Kerala continues to lead electric two-wheeler adoption with almost 13.6 percent share, followed by Karnataka with 11.4 percent and Maharashtra with 10.1 percent.
According to a report by BNP Paribas, in June electric two-wheeler penetration likely bottomed at 3.5 percent, and started recovering, as customers likely absorbed the price hikes.
Outlook
The ongoing fiscal has probably seen one of the highest new vehicle launches across various product segments. On the other hand, with the industry now aligning business and pricing strategy to not only meet customer demands but also a tentative future with lower subsidies and no FAME scheme, expect plenty of action.
The likes of Ola Electric and Ather Energy have already showcased and are introducing more budget-friendly options to make the prices of electric scooters more affordable adjusting to the revised subsidy. Expect the industry to start seeing plenty of action, as domestic and global EV makers start competing aggressively in India.
