EV two-wheeler sales up by 26% at 81,577 units in January, Ola Electric breaches 32k mark

EV two-wheeler sales for January of 2023

After witnessing a 36 percent jump in sales to 8.5 lakh units in calendar year 2023, domestic electric two-wheeler (E2W) sales got off to a flying start in January 2024.

As per the data available on the Vahan website, E2W registrations went up by 26 percent year-on-year (YOY) at 81,344 units in the first month of this year as against 64,696 units in January 2023.

Industry players reckon that E2W sales continue to remain on an uphill drive as two-wheeler buyers, especially in metro cities, are increasingly becoming environment-conscious and are discerning the economic benefits of converting to electric vehicles.

As per the Elara Securities report, the average monthly run rate for fiscal year 2023-24 till date is at 72,250 units, up by 19 percent as against the FY23 average monthly run rate of 60,500 units.

The Centre reduced the budgetary allocation for the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme by nearly 44 percent to Rs 2,671 crore for FY25, which could result in a short-term slowdown in the adoption of EVs.

However, continued government support like the PLI scheme, coupled with innovative products and competitive pricing position, will enable the industry to reach 8.5 lakh units in FY 2023-24, as per analysts.

Ola Electric, which ruled the sales charts last year, achieved its highest-ever monthly sales, reaching 32,160 units in January. The Bangalore-based EV startup’s sales were up by a whopping 75 percent from 18,353 units in the same month last year.

In an official release, Ola Electric stated that it has corned a market share of 40 percent and has posted a YoY growth of over 70 percent compared to the same month last year.

“It is a phenomenal start to 2024 as our registrations reached an all-time high in January. We believe our strong product lineup, comprising S1 Pro, S1 Air, and S1 X+, will keep the momentum going and encourage more customers to transition to electric vehicles," said Anshul Khandelwal, Chief Marketing Officer, Ola Electric.

Bhavish Aggarwal-led company commenced the deliveries for its S1 X+, equipped with a 4kWh battery and a certified range of 151km.

Also Read: Ola Electric launches new 4 kwh EV range, plans to set up 10,000 fast charging units by April

TVS Motor Company, which came second, sold 15,215 units of iQube e-scooters in January, up by 45.40 percent from 10,464 units in the first month of 2023.

The Chennai-based OEM, which secured a 19 percent market share in the E2W market, claimed that its EV sales registered a growth of 34 percent with sales increasing from 12,169 units in January 2023 to 16,276 units in January 2024.

Marking a strategic move into international markets, TVS plans to expand its electric vehicle sales to Nepal and Europe.

Ather Energy, the third-largest player in the battery-run two-wheelers segment, reported an increase in January 2024 sales of 9,243 units, obtaining an 11.32-cent market share. Its sales were flat as it could deliver 9,227 units in January 2023, as per Vahan data.

"Ather's family scooters will see a great adoption in the market. The company's market share will likely improve with the family scooter deliveries," said an industry source.

It may be recalled that the Hero MotoCorp-backed EV startup recently reduced the price of its 450S e-scooter and launched the new Apex 450.

Bajaj Auto, which continued its upward sales trajectory, sold 10,815 units sold in January 2024. The sales were up by 17.21 percent from 9,227 units last year.

Greaves Cotton, the fifth-largest market player, achieved a 17.15 percent market share by selling 2,352 units in January 2024. The sale clocked during the month is 26 percent higher as against the year-ago period.