Despite the cut in subsidy, there is a huge jump in the sales of electric two-wheelers, know the reason?

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Electric two-wheeler market recovers after shock

Electric Vehicles (EV) But after the setback caused by subsidy cuts, the electric two-wheeler industry is now showing signs of recovery, with companies ready to launch new, low-cost models.

Boom in sales of high-speed electric two-wheelers

Sales of high-speed electric two-wheelers rose 20% from a year ago and 2% from the previous month to total 63,716 units in September, according to the government’s vehicle database that records vehicle registration data.

Sales had decreased after the removal of subsidy

The number of e-two-wheelers dropped to 46,000 after the government significantly cut incentives on EVs, resulting in a sudden increase in vehicle prices. However, analysis by equity research firm Elara Capital shows that the average monthly registration rate of electric two-wheelers for the first half of 2023-24 was 66,600 units, indicating continued growth in e-two-wheeler sales. In comparison, the average monthly registration rate for the entire 2022-23 was slightly less than 60,500 units.

Heavy surge in September

Electric scooters represented 4.9% of India’s total two-wheeler market at the end of September, down slightly from 5% at the end of August. Consolidation in the electric two-wheeler market continued in September as some of the top EVs grew in share in sales in the segment.

Ola Electric achieves 29.2% market share with registration of 18,635 units in September

Ola Electric maintained its lead in the market with 29.2% market share with registrations of 18,635 units in September. TVS Motor Company has been aggressively ramping up its production for the iQube, with the scooter now having a 24.3% market share. Ather Energy had 11.2% market share, and Bajaj Auto and Greaves’ Ampere had 11.1% and 5.7% market share, respectively.

Bike 64 thousand electric two-wheeler in September

“Continuous improvement is being seen in the volume of electric two-wheelers. After the subsidy cut, volumes increased from 46,000 units in June to 64,000 units in September. EV contribution is also now at 4.9%, compared to around 5% in H2FY2013 when subsidies were higher. We expect this contribution to grow further in the second half of this fiscal and FY2025 as companies launch models at competitive prices to offset the impact of subsidy cuts, and by reducing battery capacity and gaining scale. “We implement cost reduction measures from suppliers,” said. Jay Black, an analyst at Elara Capital.

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