Despite affordable variants offered by the top four players, electric two-wheeler (E2W) sales remained flat during the first quarter (April-June) of the current financial year at 222,127 units, according to Vahan data.
The total E2W registrations were marginally up by 1.62 percent from 218,574 units in the same period last year, the Vahan data showed.
Industry players attributed the muted growth in numbers to the reduction in subsidies granted to EVs by the government by replacing the FAME2 Policy (valid till 31st March 2024) with the Electric Mobility Promotion Scheme (EMPS) 2024. The new scheme, which is valid from April 1 to July 31 this year, offers a maximum subsidy of Rs 10,000 per e-2W or Rs 5,000 per kWh of battery capacity, whichever is lower.
According to ICRA, E2W volumes had improved to around 137,041 units in March 2024, aided by pre-buying ahead of reduction in subsidy from April 2024. Following the same, the volumes moderated in Q1 FY2025.
As Rohan Kanwar Gupta, vice president & sector Head - Corporate ratings, ICRA, “The moderation can be attributed to both reduction in subsidy benefits and to an extent also to the pre-buying which happened in March 2024.
As per Vahan data, the total numbers of E2W sold during the months of April, May and June this year were 65,462 units, 77,160 units, and 79,505 units, respectively. During 2023, the numbers were 66,876 units in April, 1,05,590 in May and 46,108 in June, Vahan data showed.
“The reduction in subsidy is expected to constrain the pace of transition towards electrification over the near term, even as OEMs continue to focus on launching more affordable products, aided by value engineering initiatives,” added Kanwar.
During the first half of this calendar year (January-June), E2W sales went up by 21 percent at 527,000 units vis-a-vis 435,703 units last year.
Launches galore
Incidentally, this quarter witnessed record launches by EV manufacturers in the mass-market category.
E2W market leader Ola Electric Mobility slashed the prices of its entry-level scooter S1X model (4 kWh) by 5,000 to Rs 10,000 across variants, Ather Energy introduced its family scooter Rizta at a starting price of Rs 1.1 lakh.
Among traditional players, Bajaj Auto introduced the Chetak 2901- priced at Rs 95,998 (ex-showroom), and TVS Motor Company came up with the base variant of iQube for Rs 94,999.
Race for market share continues
Bhavish Aggarwal-led Ola Electric continued to maintain its market leadership during Q1 of FY 24 by retailing 1,08,113 units (up by 57.81 percent on a YOY basis), as per the Vahan dashboard. During the months of April, May and June this year, the company sold 34,100 units, 37,297 units and
36,716 units respectively. It sold 68,505 units during Q1 FY2023-24 last year.
“We have been the market leader in the EV 2W segment for seven consecutive quarters now. Our steady market leadership reflects the strength of our expansive S1 portfolio with the product offerings across attractive price points, making EVs accessible to everyone, "Anshul Khandelwal, Chief Marketing Officer, Ola Electric, said in an official statement.
TVS Motor Company, which was second in the pecking order, saw its numbers going down by 9.61 percent at 33,501 units during April-June 2024. During the months of April, May and June this year, the company sold 7,756 units, 11,846 units, and 13,899 units, respectively. It sold 37,063 units during Q1 FY2023-24 last year, as per data available on the Vahan dashboard.
Bajaj Auto, which held the third spot, sold 25,782 e-scooters during the last quarter. During the months of April, May and June this year, the company sold 7,556 units, 9,241 units, and 8,985 units, respectively. Its sales went up by nearly 54 percent from 16,730 units sold during Q 1 FY 2023-24.
Ather Energy, which came fourth, sold 16,065 during the first quarter of FY. During the months of April, May and June this year, the company sold 4,131 units, 6,116 units, and 6,097 units, respectively. Its sales nosedived by 42 percent from 27,838 units in the same period last year.
Greaves Electric Mobility, which came fifth, sold 7,181 units during the April-June period, up by 128 percent YoY as per Vahan data.
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