Festive exuberance spills over, charges up two-wheeler EV sales in November

Total electric two-wheeler sales touched an all-time high in October at 76,445 units. November saw similar numbers with 76,148 units sold. Both Ather Energy and Ampere saw sales exceed their October numbers, according to government website Vahan, which tracks vehicle registrations.

Some industry watchers said they had forecast sales in November dropping as discounts dried up after October and customers were expected to wait until next year.

While Okinawa did indeed see a drastic fall in sales in November owing to supply constraints and non-subsidy issues, Hero Electric and Ola Electric recorded a marginal drop.

Meanwhile, Ola Electric continued to top the EV two-wheeler sales charts, selling 15,655 units in November, in a slight dip from October.

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‘A strong trend’

“What we are seeing in the EV space is consistent with what we have been articulating and expecting for a while,” Arun Kumar GR, group CFO of Ola, told ET. “The fundamental point is that adoption into EV is a strong trend and the inflection point is just around the corner.”

Kumar said that the company expects to see a significant increase in numbers around March and April, as it starts delivering its cheapest product, the Ola S1 Air, which has a price tag of Rs 84,999.

Total EV sales in November, including three wheelers and four wheelers, crossed the record set last month amid the Navratri and Diwali season. October sales saw a monthly record of 1,15,886 EV units, while the November numbers closed higher at 1,18,877 as per Vahan data.

“There has been a spillover from October sales to November,” said Jay Kale, SVP, equity analyst, auto and auto ancillary, Elara Capital. “The EV contribution as a percentage of total two-wheeler sales hasn’t changed in the last two-three months.”

In October, electric two-wheeler sales were about 4.5% of the petrol vehicle sales volume, and this dipped to 4.2% in November.

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Sales of electric two-wheelers are poised to grow 117% year on year at 750,000 units this fiscal year, while three-wheeler sales are expected to grow 12% to 200,000 units, according to the Society of Manufacturers of Electric Vehicles (SMEV).

Also read | Festive season not over for EV makers as sales hit top gear


Policy support sought

“The growth momentum in the electric two-wheeler industry has been building positively in the last few months,” said Sohinder Gill, CEO of electric bike and scooter maker Hero Electric and director-general of SMEV. He said it was important to address issues such as kinks in the incentive scheme. Gill also called for timely formulation of a mid- and long-term policy post FAME 2 “to support the ambitious plans of at least 25-30% conversion of two wheelers into EVs by FY25”.

While the EV ecosystem is still developing, adoption is being driven by two- and three-wheelers as the masses increasingly use them for last-mile connectivity, buoyed by the low cost of operations.

“The total cost of ownership and low cost of operations, specifically in two- and three-wheelers, makes them a viable choice for consumers,” said Nikunj Sanghi, an automotive dealer based in Alwar, Rajasthan.

High-speed shift

Experts said the hinterlands are seeing faster adoption of low-speed scooters, amid a rise in fuel prices and consumers choosing cleaner and greener mobility.

However the share of low-speed e-2-wheelers is falling for most manufacturers as they move towards production of high-speed vehicles. For Hero Electric, low-speed now contributes just around 5-6% of sales as against 80% a few months back.

The Narendra Modi-led government has targeted having EVs make up 30% of private cars, 70% of commercial vehicles, and 80% of two- and three-wheelers by 2030.