The electric two wheeler market continues to be show promise with the new launches and the several new startups entering the fray. Strong government incentives for vehicles locally produced related to a positive start to the New Year. While FAME II, introduced in 2019, allowed the segment to excel, FAME III is poised to also make an even more significant impact on sales through FY25. January 2024 saw a total of 81,608 electric two wheelers sold, up from 64,694 units sold in January 2023 up 26.14 percent YoY while there were 75,522 units sold in December 2023 with an 8.06 percent MoM growth.
The electric two-wheeler market in India has been steadily growing as more consumers opt for eco-friendly and cost-effective transportation solutions. Ola Electric led the list with 32,252 units sold in the past month, an upward tick of 75.73 percent from 18,353 units sold in January 2023 while MoM sales improved by 6.57 percent as against 30,263 units sold in December 2023. Ola Electric S1 X and S1 X+ continued to woo customers and in December 2023 the company had significantly reduced pricing. Sales in Feb 2024 are expected to be even higher, thanks to the Rs 25,000 discount offer this month.
Overview of Electric 2W Market in India
Before delving into the sales figures for January 2024, it's essential to understand the broader context of the electric two-wheeler market in India. Major players in the market include Ola Electric, TVS, Bajaj Auto, Ather Energy, Hero Electric, Revolt Motors, Ampere Electric, and Kinetic Green, each offering a range of electric scooters and motorcycles.
Key Highlights from Jan 2024 Sales
1.Ola Electric
Ola Electric continued its strong performance in January 2024, maintaining its position as one of the leading electric two-wheeler manufacturers in India. The company's flagship models, such as the Ola S1 and S1 Pro, witnessed robust demand, with impressive sales figures reported across various regions.
2. TVS
TVS, a renowned player in the Indian automotive industry, also made significant strides in the electric 2W segment during January 2024. The TVS iQube Electric scooter garnered positive attention from consumers, reflecting the brand's commitment to innovation and sustainability.
3. Bajaj Auto
Bajaj Auto, known for its popular Pulsar range of motorcycles, made its mark in the electric 2W market with the Bajaj Chetak Electric. Despite facing stiff competition, the Chetak Electric garnered respectable sales numbers, indicating a growing interest in electric mobility among traditional motorcycle enthusiasts.
4. Ather Energy
Ather Energy, a Bangalore-based startup, continued to expand its presence in the electric scooter segment with models like the Ather 450X and Ather 450 Plus. The company's focus on performance and technology-driven features resonated well with urban commuters, contributing to its sales success in January 2024.
5. Hero Electric
Hero Electric, a subsidiary of Hero MotoCorp, maintained its position as a key player in the electric 2W market, catering primarily to the budget-conscious segment. Models like the Hero Electric Optima and Hero Electric Flash offered affordable yet practical transportation solutions, driving sales in both urban and rural areas.
Factors Driving Market Growth
Several factors have contributed to the growth of the electric 2W market in India, including:
- Government Incentives: Subsidies, tax benefits, and incentives offered by the government to promote electric vehicles have made electric 2Ws more accessible and affordable to consumers.
- Infrastructure Development: The expansion of charging infrastructure, and also including the public charging stations and the home charging solutions, and also has alleviated range anxiety and increased consumer confidence in electric 2Ws.
- Environmental Awareness: Growing concerns about air pollution and climate change have prompted consumers to adopt cleaner and greener transportation alternatives, driving demand for electric vehicles.
- Technological Advancements: Advances in battery technology, motor efficiency, and vehicle design have led to the development of electric 2Ws that offer superior performance, longer range, and enhanced features compared to traditional internal combustion engine vehicles.
Challenges and Opportunities
While the electric 2W market in India presents immense opportunities for growth, it also faces several challenges, including:
- High Initial Cost: The upfront cost of electric 2Ws remains relatively high compared to conventional vehicles, posing a barrier to adoption for price-sensitive consumers.
- Charging Infrastructure: Despite recent improvements, the charging infrastructure for electric vehicles in India is still nascent, with limited coverage in many regions.
Conclusion
Lower down the sales order were electric two wheeler makers BGauss Auto with 1,485 units sales in January 2024 posting both a YoY and MoM growth while Wardwizard Innovation sales stood at 975 units with a YoY growth of 521.02 percent but a 30.75 percent MoM de-growth. The list also included Kinetic Green (820 units), Okinawa Autotech (683 units), PurEV (619 units) and Okaya EV (579 units. There was also Revolt (529 units) and Lectrix (506 units). Others in the segment contributed 4,017 units to total sales in January 2024. This was a 72.73 percent YoY and 10.65 percent MoM de-growth as there had been 14,729 units and 4,496 units sold in January 2023 and December 2023 respectively.