Electric two-wheeler sale decreased by almost 50% in April compared to March as a result of an adjustment to industrial subsidies that made a seasonal downturn worse. Just over 64,000 electric scooters were sold last month, with more than 33,000 coming from industry leader Ola Electric. But Ola itself reported a decline in sales from a record high of more than 50,000 units in March.
Electric two-wheeler sale so far in 2024
More than 136,000 electric two-wheeler units were sold in March, the most in any one month, according to government vehicle registration data from the Vahan portal. Former industry leaders Bajaj and TVS Motors also experienced a decline in sales of electric two-wheelers last month. In April, Bajaj sold little more than 7,500 units, down from over 18,000 in the previous month. Sales at TVS decreased from over 26,000 units in March to 7,600 units.
With the release of its newest model, Rizta, Ather Energy has entered the large family scooter market. In April, the company sold over 4,000 units, less than 4% of the over 17,000 units sold in March.
According to a top executive at an electric scooter manufacturer, there were several reasons for the decline in sales. April is always a slow month, but when the industry switched from one subsidy to another, businesses also slowed down output and reevaluated their approach, and the CEO continued.
The Ministry of Heavy Industries’ Rs 500 crore Electric Mobility Promotion Scheme (EMPS) took effect on March 31 when the FAME-II subsidy program came to an end. Support for up to Rs 10,000 per two-wheeler will be given under EMPS 2024 for more than 300,000 units. Due to the fact that the new subsidy does not apply to unsold automobiles that were produced prior to April 1, businesses have also been forced to reduce production and sales as they wait for additional subsidy clarification.
Over 940,000 electric two-wheelers were sold in the fiscal year that concluded on March 31, a 30% increase from the previous year. As ET had previously reported, investor interest in it has also persisted. Ather Energy is completing arrangements to raise $75–90 million, and Ola Electric is waiting on the market regulator to give the go-ahead for an IPO.
