E2W market returns to 60,000 units after intense fall in June as FAME subsidy slashed, prices rise
After a sharp drop in sales due to reduced FAME subsidies and higher product prices, sales of electric two-wheelers resumed in two months. With sales of nearly 60,000 units, August 2023 is proof enough that India EV Inc. on two wheels is back to work. Sales rose after June, down 56% month-on-month and hitting an 11-month low of 45,734 units, after FAME II subsidies fell 25%.
According to data released by the government website Vahan as of the end of August 31, a total of 59,313 electric two-wheelers have been retailed nationwide. This is the total for the last day of August, but this total is expected to increase as new vehicle registrations are added to the month during the first few days of September, which should see August 2023 retail sales cross the 60,000 mark.
Here we have provided a clear data sheet according to the Vahan website in which you can see the monthly growth in July and August. The 54,498 units of July 2023 have increased by 18% compared to 46,027 units in June and 59,313 units in August 2023 increased by 9% in July. With this sustainable growth momentum, the annual growth rate also increased: 3.68% in June, 17% in July and 13% in August.
| ELECTRIC TWO-WHEELER RETAIL SALES IN INDIA IN THE FIRST 8 MONTHS OF THE YEAR | |||||||||
| January | February | March | April | May | June | July | August | Total | |
| CY2023 | 64687 | 66083 | 86328 | 66854 | 105489 | 46027 | 54498 | 59313 | 549279 |
| CY2022 | 30121 | 35737 | 54396 | 53284 | 42410 | 44392 | 46605 | 52225 | 359170 |
| YoY change | 114% | 85% | 59% | 25% | 149% | 3.68% | 17% | 13.57% | 53% |
Now let’s see who currently dominates the electric two-wheeler market.
According to Vahan retail sales data, we can see that the top seven manufacturers of electric two-wheelers are experiencing strong monthly growth. They sold more than 1,000 units each, for a total of 50,850 units, or 86% of total retail sales in August. Of this total, market leader Ola Electric holds a dominant market share of 29. Among the top 25 OEMs, 16 have had monthly growth since July 2023, while 9 OEMs have experienced declines.
Ola Electric
Ola Electric, which recently launched its refreshed S1 range of electric scooters and has over 75,000 pre-orders, sold 17,389 units in August, better than June’s 17,655 but lower than the 19,340 units of July. Due to the growing demand for its products, Ola can expect to generate more than 20,000 products per month starting in September. Ola’s market share in August was 29% – the same period as the previous period. From January to August 2023 with 162,684 units out of a total of 549,279 units in the whole industry.
TVS Motor Co
There was a monthly growth of 40% for TVS Motor Co, with 14,584 units sold in July 2023. During August, the company had a 24% market share, up from 19% in July. Excluding May 2023 record sales for TVs or other OEMs, last month’s figures represent sales. TVS’s best monthly iQube for the first 5 months of Fiscal Year 2024, after April (8,758), June (7,860), and July (10,383). In the calendar year to date, TVS has surpassed 100,000 units for a total of 102,047 units. Last month, the company launched its new premium electric vehicle, the TVS X, priced at Rs 250,000, at a major event in Dubai.
Ather Energy
Bangalore-based smart electric vehicle maker Ather Energy came in third with 6,835 units, a slight increase of 2% from July’s 6,671 units. Ather Energy is one of a number of electric vehicle OEMs taking steps to enable potential buyers to easily finance. Almost a month after the company introduced a 60-month loan product, resulting in monthly EMIs as low as Rs 2,999, in July, it announced 100% on-road financing for its e-two-wheelers. This was done in collaboration with IDFC First Bank, HDFC Bank, Hero FinCorp, Bajaj Finance, Axis Bank, and Cholamandalam Finance.
Bajaj Auto
Bajaj Auto, which has significantly increased production of Chetak scooters and is also expanding its network, sold 6,137 electric vehicles in August, a 50% increase from 4,116 units in July. This is the monthly performance. Bajaj Auto’s second-best after the best monthly performance of 9,983 units in May 2023.
Greaves Electric Mobility
Greaves Electric Mobility, which was ranked sixth in July, is now ranked fifth due to a 31% increase in retail units from month-to-month, which has risen to 2,821 units, as compared to 2,158 units in July 2023, as a result of a 31% increase in revenue from month-to-month.
Okinawa Autotech
Okinawa Autotech ranked 6th with 1,953 units, down 13% from the previous month. Given that the company opened in 2023 with 4,408 units in January, sales are slowing. In seventh place is Okaya EV, which sold 1,101 electric motorcycles, up 40% from 785 units sold in July.
Hero MotoCorp
A total of 901 Vida scooters were sold by Hero MotoCorp in July, which accounts for a drop of 9% from July’s 990 units. However, Hero MotoCorp has managed to gain a place above Hero Electric (765 units) for the second time in a row.
Last but not least
Even though electric two-wheeler prices have risen since June, buyers are willing to invest their money in eco-friendly, zero-emission machines that deliver better returns on investment than petrol-engine alternatives. In spite of a 25% reduction in FAME subsidies and a higher price tag, nearly 160,000 EV users purchased e-two-wheelers between June and August 2023. Even OEMs and an ecosystem of component suppliers, OEMs, and electric vehicle buyers will face a dominant market dynamic if the FAME subsidy program is not expanded. Their technology and equipment work to make electric vehicles more affordable by reducing product development and development costs. As in the gasoline-powered two-wheeler market, stiff competition among electric vehicle buyers will prompt OEMs to launch newer and more innovative products with a focus on the latest technology and range. Sustained demand from retail buyers and last-mile delivery operators is expected to help the electric two-wheeler industry continue to grow through the end of the year.
source of data: Vahan
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