Good news for the Indian electric two-wheeler market! Sales have witnessed a promising increase in July 2023, with a total of 51,299 units sold, marking an 11.55% growth compared to June’s 45,984 units. These figures, obtained from the government’s VAHAN portal as of July 31, could see a slight uptick as additional vehicle registrations are factored into the data.
A closer analysis of the retail numbers from VAHAN reveals that most leading players have experienced month-on-month growth. The top seven Original Equipment Manufacturers (OEMs) dominated the market, accounting for an impressive 85% of total sales in July, with a combined total of 43,566 units sold.
Ola Electric took the lead with 18,333 units, showing a 4% increase from June. TVS followed closely with 9,599 iQube e-scooters, a significant 22% growth compared to June. This milestone pushed TVS past the 1.5 lakh sales mark since the scooter’s launch in January 2020. Ather Energy, Bajaj Auto, and other manufacturers also reported notable growth.
However, not all companies experienced the same level of success. Okinawa Autotech witnessed an 18% decline in sales, while Ampere saw a 16% decrease compared to the previous month. Hero MotoCorp’s EV subsidiary Vida doubled its performance from June, while Hero Electric faced a 33.18% decline.
The slightly improved retail sales in July 2023 indicate a maturing of the electric two-wheeler market in India. Despite reduced subsidies leading to higher prices, nearly 1 lakh buyers (97,283 to be precise) have opted for electric two-wheelers in the past two months.
The possibility of the FAME subsidy scheme not being extended means that market dynamics will come into play, with companies striving to reduce development and product costs to enhance affordability compared to traditional Internal Combustion Engine (ICE) two-wheelers.
Manufacturers are also working on lower-cost versions of popular electric vehicles. TVS Motor Co, for instance, reportedly has plans for a budget-friendly iQube model, potentially featuring a smaller battery pack and fewer features.
The July sales figures are viewed as a positive sign for the Indian electric two-wheeler market, demonstrating consumer willingness to invest in electric vehicles despite challenges. The marginal growth indicates a shift in consumer preference and a maturing market, paving the way for a potentially thriving future for electric two-wheelers in the country.