March 2024 marked a significant milestone for India’s electric two-wheeler market, with sales soaring to an unprecedented high of over 1,36,000 units. This remarkable figure reflects a remarkable 50% year-on-year increase, underlining the growing traction and acceptance of electric mobility in the country.
Comparatively, March 2023 recorded around 85,000 electric two-wheeler sales, while March 2022 saw figures around 54,000 units, according to data sourced from the Vahan website as of April 1, 2024. The steady upward trajectory in sales over the years signals a substantial shift towards eco-friendly transportation options.
Insights from Elara Capital’s analysis reveal that electric two-wheeler penetration for March 2024 surged to 8.9%, compared to 5.7% in February 2024. Over the entire fiscal year 2024, penetration rates reached 5.4%, up from 4.5% in FY23, highlighting a growing preference for electric vehicles.
These record-breaking sales come against the backdrop of subsidy changes, as incentives under the second phase of the FAME Scheme (FAME II) ceased for electric vehicles sold after March 31, 2024. Despite the subsidy reduction, the market has displayed resilience and continued growth.
Moreover, February 2024 witnessed a robust 24% year-on-year increase in electric two-wheeler sales, totaling 81,963 units. This uptick indicates sustained momentum in the market, with sales surpassing 8,00,000 units during the 11-month period of FY24, as per data from the Vahan portal.
It’s important to note that Vahan records only the total number of registered sales and doesn’t include booking data. Additionally, it excludes sales data from certain regions like Lakshadweep, Madhya Pradesh, and Telangana. The FAME India Scheme, integral to the promotion of electric vehicles (EVs), has seen a significant reduction in budgetary allocation by nearly 44% to Rs 2,671 crore for FY25. Industry experts anticipate this decrease could potentially lead to a slowdown in EV adoption.
Commenting on the market dynamics, an EV industry expert shared with Moneycontrol, “The market is definitely maturing, however some players did enjoy the benefit of FAME scheme, we will now see how the market reacts to the end of subsidy, we are still awaiting more clarity on FAME III.”
EV sales witnessed a dip to 45,000 units in June 2023 following the government’s decision to reduce the FAME subsidy from 40% to 15% on June 1.
Despite these challenges, competition for market share remains fierce. In March 2024, Ola Electric maintained its lead with the highest registrations at 53,000 units, commanding a 37% market share. TVS Motors followed with 19.4%, Bajaj Auto at 13.1%, Ather Energy at 12.6%, and Hero MotoCorp at 3.0%.
For the entire fiscal year 2024, Ola Electric retained the highest market share at 34.6%, trailed by TVS Motors at 19.4%, Ather Energy at 11.5%, Bajaj Auto at 11.3%, and Greaves Electric (formerly Ampere) at 5.8%, according to Vahan data.
Anshul Khandelwal, Chief Marketing Officer of Ola Electric Technologies Private Limited, expressed optimism about their performance, stating, “There couldn’t have been a better year-end for us to FY24 with our registrations zooming past the 53,000 mark in March…The fact that we recorded almost 1.20 lakh registrations in Q4 FY24 alone speaks volumes of our robust scooter portfolio, and we aim to continue the growth trajectory and contribute further to India’s electrification journey.”
Ola Electric has recently announced various initiatives spanning products, services, charging networks, and battery warranty to further accelerate EV adoption. TVS Motors emerged as the second-largest player in the market with March sales of around 24,000 units, followed by Ather with 16,600 units and Bajaj with 16,313 units sold.
Sourece: moneycontrol.com