Date: February 03, 2024. — The electric two-wheeler market in India is off to a strong start in 2024, witnessing a remarkable surge in sales in January. Manufacturers collectively sold 81,344 units in January, according to data from the Vahan website. This marked an impressive 26% year-on-year growth compared to January 2023’s 64,694 units.
The electric two-wheeler market in India demonstrated significant growth in 2023. Record retail sales surpassed 857,000 units, marking a remarkable 36% year-on-year increase. Moreover, in the first 10 months of the fiscal year 2024, cumulative sales reached 723,982 units. This showcased a substantial 26% year-on-year surge compared to the corresponding period in the previous fiscal year (575,791 units in April 2022-January 2023).
The electric two-wheeler industry is poised to hit a historic milestone if the current momentum persists or picks up speed in the remaining two months of the fiscal year. It is projected to reach a total of approximately 850,000 units for the entire fiscal year 2024. Despite a crowded market with almost 180 players, Ola Electric, TVS, Bajaj, Ather Energy, and Greaves emerge as the dominant forces. They collectively secured 86% of total sales in January 2024 and 82% of cumulative sales from April 2023 to January 2024.
Ola Electric remains a frontrunner in the electric scooter market. They achieved a remarkable feat of selling 32,160 units in January 2024, contributing to a cumulative 10-month total of 247,607 units. Furthermore, Ola set a notable milestone on December 8, 2023, with the commencement of deliveries for its S1 X+, equipped with a 3kWh battery and a certified range of 151km. Meanwhile, TVS Motor closely follows, capitalizing on the success of its iQube e-scooter, selling 15,181 units in January and securing a 19% market share. TVS plans to expand its electric vehicle sales to Nepal and Europe, marking a strategic move into international markets.
Ather Energy, the third-largest player in the Indian e-two-wheeler OEM sector, reported January 2024 sales of 9,209 units, obtaining an 11.32% market share. Responding to market competition, Ather reduced the price of its 450S e-scooter, launched the new Apex 450. In addition, the company received increased support from early investor Hero MotoCorp, which raised its stake to 39.7% in January 2024. Bajaj Auto, entering the EV market in January 2020, continued its upward trajectory, surpassing Ather Energy for the fourth consecutive month with 10,742 Chetak units sold in January 2024. Greaves Cotton, the fifth-largest market player, achieved a market share of 17.15% by selling 13,952 units in January 2024. The company features a diverse range of electric two-wheelers under its Ampere brand, including the Magnus Pro, Zeal, Reo, and V48 models.
In a combined session of the Lok Sabha and Rajya Sabha, President Droupadi Murmu stated, “Approximately 2,000 electric vehicles were sold in 2014-15. Until December 2023-24, the market had sold approximately 12 lakh electric vehicles.”
“We are optimistic about potential government initiatives like FAME III following the expiration of FAME II. Moreover, FAME III is likely to have a substantial impact on FY25 EV sales by creating a favorable climate. Anticipated incentives and subsidies will increase customer affordability, resulting in a spike in electric vehicle adoption. The policy’s assistance is likely to inspire manufacturers to develop and introduce new, cost-effective models,” said Ayush Lohia, CEO of Lohia Auto.
The electric two-wheeler market in India is ready to grow. Consumers are becoming more aware of the environmental and economic benefits of converting to electric vehicles. Supporting legislation, innovative products, and competitive pricing position the industry to reach new heights in the future years.
