The Indian electric 2-wheeler industry faced a significant challenge earlier this year when the government slashed the FAME II subsidy by 25%. This decision caused a notable slump in sales. However, recent developments indicate that the industry is now on the path to recovery, and electric 2-wheeler sales have almost reached pre-subsidy cut levels.
It’s interesting to see how the subsidy reduction affected sales and how the market has been recovering.
Here’s a summary of the key points:
- Subsidy Cut Impact: The government’s decision to reduce the FAME II subsidy on electric 2-wheelers by 25% earlier in the year led to a slump in sales.
- Sales Recovery: The industry is now showing signs of recovery, with electric 2-wheeler sales almost back to the pre-subsidy cut level.
- September 2023 Sales: In September 2023, a total of 63,716 electric 2-wheelers were sold, marking a 20% growth compared to the previous year and a 2% rise over the last month.
- First Half of 2023-24: Sales for the first half of 2023-24 stood at 66,600 units. After the subsidy reduction, sales dropped to 46,000 units, but they have been steadily improving since then.
- Market Share: Electric 2-wheelers, particularly e-scooters, made up 4.9% of the total 2-wheeler market by the end of September 2023. This is slightly lower than the approximately 5% market share they had in the second half of FY23 when subsidies were higher.
- Market Leaders: Ola Electric is leading the segment with 18,635 units sold in September 2023 and a market share of 29.2%. TVS iQube follows with a 24.3% market share, while Ather Energy has an 11.2% market share. Bajaj controls 11.1% of the e-scooter market.
Conclusion
These statistics paint a promising picture for the electric 2-wheeler industry in India. Despite the initial setback caused by the subsidy reduction, the industry is clearly rebounding, with certain companies like Ola Electric and TVS iQube leading the charge in terms of sales and market share. As the industry continues to innovate and adapt to changing dynamics, it is poised for a bright and sustainable future in India’s mobility landscape.
These statistics indicate that despite the initial setback due to the subsidy reduction, the electric 2-wheeler industry in India is on a path to recovery, with certain companies like Ola Electric and TVS iQube leading the way in terms of sales and market share.
