Electric Scooters Register 66% Drop in Sales in India - Latest Sales Report

Electric Scooters Register 66% Drop in Sales in India - Latest Sales Report

The electric 2-wheeler segment was on the rise in the past few months but it seems like it is now slowing down or even falling down. The main reason for this fall is the rollback of FAME II subsidies by the government which has led to the price hike in the electric 2-wheeler segment.

The Vahan data depicts a 60% decline in total sales in the month of June 2023. Electric two-wheeler sales in India grew from under 2,000 units in 2013 to 7.4 lakh units in FY23 but dipped to 36,000 units in June 2023.

The electric 2-wheeler sales were going up every month for the past 5 years and it was expected to go the same. The reason people opted for electric vehicles was rising fuel prices and the cost-effective nature of EVs.

But on June 1, 2023, Govt of India decided to reduce the FAME II subsidies from 40% to 15%. This reduction in subsidies led to the price increase of electric vehicles by 15,000 to 30,000 INR. The sales will surely dip after this as already seen in June 2023 but one can hope it won’t fall way below the 40,000 units mark that was the average sales before in 2022.

Although the market experts suggest that the sales will rise again as it will give time for customers to get accustomed to new prices. The next few months till the festive season could be difficult, and the estimation of 2 million E2W sales seems difficult for now.

Sales of all major electric two-wheeler manufacturers have declined significantly in June 2023, following the recent modifications in FAME II subsidies. The cuts have made electric two-wheelers less affordable for many consumers, who are now opting for traditional petrol-powered scooters. 

The decline in sales is a setback for the growth of the electric two-wheeler market in India. The government will have to recalibrate its strategies to create a more conducive environment for the E2W industry. The government must take steps to address this issue if it wants to achieve its target of 10 million E2Ws on the road by 2030.

Source - Rushlane


Related Questions and Answers

Most Popular Answers for Bajaj Chetak
What is the procedure for loan apply, and what kind of documents are needed for Bajaj Chetak Premium?
2023-09-19 06:45:37 AM

Generally, the documents required while purchasing a vehicle are proof of identity (Aadhar Card, Voter ID, etc.), proof of address (driving license, electricity bill, etc.), and income proof (bank statement, salary certificate, etc. Exact confirmation regarding EMI, down payment, interest, loan period, and its procedure will be discussed by the bank only, as it depends upon individual eligibility. 

What is the waiting period for Bajaj Chetak Premium in India?
2023-09-19 06:44:05 AM

The waiting period for the bike mainly depends on the City in which you are living. The demand for the bike you are interested in among the buyers is also a key factor. If a bike is popular, it might end up in a long waiting time period. Only three months is the general waiting period for all bikes.

Which scooter is better Bajaj Chetak or Ather 450X?
2023-09-19 06:42:38 AM

The Ather 450 is among the most premium and expensive electric two-wheelers on sale in India. The Ather 450X makes 6kW of peak power and offers a top speed of 80kmph. On the features list, the Ather 450X gets built-in Google Maps as well as digital document storage. Moreover, it also features Bluetooth connectivity enabling music and phone call controls. You also get 4G LTE SIM connectivity. On the other hand, the Chetak features a 4kW BLDC motor and offers two riding modes: Eco and Sport. Apart from its well-rounded design, the Chetak is slightly plain Jane on the feature front. As of now, the Chetak is available only in Bengaluru and Pune which is also a limitation the customers have to face.

What is the mileage of Bajaj Chetak?
2022-12-29 06:08:48 AM
Bajaj Chetak had a 145.45 cc single cylinder engine which was able to produce 7.5 Bhp at 5500 rpm and 10.8 Nm at 3500 rpm. It could hit a top speed of 85 kmph and return a combined mileage of 45 kmpl. It was equipped with 150 mm drum brakes both at rear and front. Bajaj Chetak has been officially discontinued for now. It was priced at a starting price of Rs. 26,899 (ex-showroom Delhi).
Is it possible to get the old Bajaj Chetak scooter?
2022-12-29 05:53:22 AM

You can get an old Bajaj Chetak from a used market or a Bajaj Chetak owner. The scooter was discontinued 15 years back and gets a 145.45 cc, 2-stroke engine producing 7.5 BHP and 10.8 NM of torque. It is one of the favorite rides of India and you would get options varying between rusted and totally restored shining Chetaks in the market. It gets a 4-speed hand shifter gearbox and comes with 150 mm of drum brakes on both the ends. You can buy the same within a price range of INR 5,000 to INR 30,000 depending upon its restoration and condition.