In May 2023, India’s retail sales of electric two-wheelers reached a new peak at 104,755 units, marking a 57 per cent increase compared to April 2023, which saw 66,724 units sold. This translates to an average of 3,379 electric two-wheelers sold per day last month. This is the first time, the sale of two-wheeler EVs topped 100,000 units.
These figures are based on end-of-day sales data from the government’s Vahan website as of May 31. The record-breaking sales surpassed the previous high of 85,452 units in March 2023 by a significant margin of 19,303 units. This is despite the fact that in April, sales experienced a 22 per cent decline in April 2023 compared to the previous month.
What is driving the sale surge?
The surge in retail sales in May, particularly in the last week of the month, as per Auto Car Pro can be attributed to the Indian government’s May 22nd decision to revise the subsidy under the FAME India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) Scheme.
The subsidy was reduced to Rs 10,000 per kilowatt per hour (kWh) from the previous Rs 15,000/kWh, and the incentive cap was lowered to 15 per cent of the two-wheeler EV’s ex-factory price, down from the previous 40 per cent. This 37.5 per cent reduction in incentives resulted in higher vehicle prices starting from June 1, prompting value-conscious buyers to make their purchases earlier.
Between May 23 and May 31, a total of 57,917 electric two-wheelers were sold, indicating a rush of new purchases in the last eight days of May.
Which companies sold the most unit?
Among the leading OEMs (original equipment manufacturers), only three out of the top 25 experienced a decline in sales month-on-month.
Market leaders Ola Electric, TVS Motor Co, Ather Energy, and Bajaj Auto achieved their best-ever monthly sales figures.
– Ola Electric sold 28,438 units, surpassing its previous high of 21,991 units in April 2023.
– TVS Motor Co’s iQube crossed the 20,000-unit mark with 20,253 units sold.
– Ather Energy achieved a new monthly high of 15,256 units.
– Bajaj Auto saw a remarkable 168 per cent increase in sales to 9,910 units, securing the fourth position for the first time.
These four OEMs, along with Ampere Vehicles, accounted for 83,475 units of the total 104,755 EVs sold in May, representing 80 per cent of the market share. Additionally, seven other OEMs achieved four-figure sales.
Will the sales sustain over time?
Looking ahead, the reduced FAME II subsidy, which took effect on June 1 and resulted in higher prices for e-scooters and e-motorcycles, and is expected to slow down demand in the coming months. However, it might pick up during the upcoming festival season.
Nevertheless, the prospects for the domestic electric two-wheeler industry are expected to remain strong due to the rising cost of petrol and diesel and the cost-effective nature of eco-friendly two-wheeler travel. Manufacturers are expected to announce price increases in the near future.
(With inputs from agencies)
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