Introduction
India’s electric vehicle (EV) industry has witnessed a significant surge in sales, particularly in the two-wheeler segment. Despite the reduction in the FAME (Faster Adoption and Manufacturing of Electric Vehicles) subsidy, November 2023 proved to be a remarkable month for e-two-wheeler sales.
With over 91,000 units sold, it was the best month of the year, reflecting a strong 38% year-on-year growth. The cumulative sales for the first 11 months of the year reached an impressive 783,047 units, indicating a positive outlook for the industry. This article examines the key players, market trends, and factors contributing to the growth of electric two-wheeler sales in India.
Cumulative Sales and Year-on-Year Growth
The cumulative sales for the first nine months of CY2023 reached an impressive 783,047 units, representing a 38% growth compared to the same period in 2022. In October 2023 alone, the industry surpassed the total retail sales of 631,174 units recorded in the entire CY2022. With one month remaining in the calendar year, it is projected that the electric two-wheeler industry in India will achieve record-breaking annual sales of over 850,000 units, indicating a robust 35% year-on-year growth.
Market Leaders and Their Achievements
- Ola Electric: Dominating the Market
Ola Electric continues to dominate the electric two-wheeler market in India. In November 2023, Ola Electric sold 29,764 units, representing a 25% increase compared to October. With a market share of 32% in November, the company’s cumulative sales for the first 11 months of 2023 exceeded 236,441 units. Ola Electric’s success can be attributed to its refreshed S1 series of e-scooters, which have garnered over 75,000 bookings.
- TVS Motor Co: Strong Sales Growth
TVS Motor Co, another prominent player in the electric two-wheeler market, recorded its second-best monthly sales in November, with 18,931 units sold. This figure represents a 15% month-on-month growth and gives TVS Motor Co a market share of 21%. Between January and November, the company sold 153,960 iQubes, surpassing the cumulative milestone of 200,000 sales in just 45 months since its launch in January 2020.
- Bajaj Auto: Rising to the Top
Bajaj Auto, a legacy player in the industry, entered the electric vehicle market in January 2020. In October 2023, Bajaj Auto surpassed Ather Energy to claim the third rank in terms of sales. November witnessed Bajaj Auto’s best-ever monthly sales of 11,668 units, representing a 29% increase compared to the previous month. The Bajaj Chetak, the company’s sole electric scooter, experienced rising demand and accounted for a 13% market share in November, a significant jump from the 4% market share held in January 2023.
Top EV Manufacturers in India
A deep dive into the Vahan retail sales data reveals that the top 10 EV manufacturers in India collectively sold 83,920 units in November 2023, accounting for 92% of the total sales in the industry. Ola Electric, TVS Motor Co, and Bajaj Auto are the three key players with sales in five figures. However, numerous other OEMs have experienced strong month-on-month growth and contribute to the industry’s overall growth. Some notable players include Greaves Electric Mobility, Ampere Vehicles (a sister EV arm of Greaves), Bgauss Auto, Okaya EV, Lectrix EV, and Wardwizard Innovations.
Factors Driving Electric Two-Wheeler Sales
Greater Availability of New Products
One of the factors contributing to the growth of electric two-wheeler sales in India is the increasing availability of new products. Manufacturers have launched refreshed and improved models, attracting a wider audience. Ola Electric’s refreshed S1 series and TVS Motor Co’s iQube show how product innovation has driven sales.
Expansion of Electric Charging Infrastructure
The expansion of the electric charging infrastructure in the private and public sectors has also played a crucial role in promoting the adoption of electric two-wheelers. The availability of charging stations across cities has alleviated range anxiety and increased consumer confidence in electric mobility.
Long-Term Cost Savings
While the initial cost of an electric scooter or motorcycle may be higher than their petrol-powered counterparts, the long-term cost savings associated with EVs have attracted growing riders. Lower maintenance and operating costs and government incentives make electric two-wheelers a more economical choice in the long run.
Demand for Last-Mile Deliveries
The demand for last-mile deliveries in urban and rural areas has acted as a catalyst for the sales of cargo-transporting electric two-wheelers. With the rise of e-commerce and increased focus on sustainable logistics, businesses opt for electric vehicles to fulfil their delivery needs. This trend has led to bulk orders and increased sales for electric two-wheeler manufacturers.
Early Adoption of EVs
In anticipation of the FAME subsidy potentially ending in April 2024, personal EV and fleet buyers may advance their purchases. This anticipation has created strong demand in the first three months of CY2024. The uncertainty surrounding the future of the subsidy has prompted buyers to make their transition to electric mobility sooner rather than later.
Conclusion
The electric two-wheeler industry in India is experiencing significant growth, with November 2023 marking the best month of the year in terms of sales. Despite the reduction in the FAME subsidy, key players such as Ola Electric, TVS Motor Co, and Bajaj Auto have achieved remarkable sales figures, contributing to the industry’s overall success.
Factors such as product innovation, the expansion of charging infrastructure, long-term cost savings, and increased demand for last-mile deliveries have all played a role in driving the growth of electric two-wheeler sales in India. With an optimistic outlook for the future, the industry is expected to continue its upward trajectory, promoting sustainable transportation and reducing carbon emissions.
