EV Market Trend: Electric Two-Wheeler Sales Jump 33.3% in 2023-24
India saw a strong increase in the sales of electric two-wheelers (e2w) during the 2023–2024 fiscal year. Data from the Vahan portal shows that e2w sales increased to a total of 910,930 units from 682,937 units in the previous fiscal year, indicating an amazing 33.3% year-over-year growth. This increase is a reflection of the Indian market's rising acceptance and popularity of electric cars, which are being fueled by government incentives, environmental concerns, and technical improvements.
Electric Dominance: Ola
During the fiscal year 2023–2024, Ola Electric, one of the many companies in the e2w sector, became a dominant force. By securing about one-third of India's e2w sales, the business established itself as a significant participant in the electric vehicle market. Sales of Ola Electric more than doubled, going from more than 150,000 units in FY23 to more than 300,000 units in FY24. Ola Electric's remarkable expansion may be ascribed to its emphasis on innovation, quality, and affordability, in addition to its wide network and well-known brand in the Indian market.
Expansion of Established Manufacturers
Apart from Ola Electric's hegemony, well-known two-wheeler producers like Hero MotoCorp, Bajaj Auto, and TVS Motor Company also experienced notable growth in their electric vehicle sales. With a gain of about 100,000 units and a fifth of the market share, TVS in particular surged to the second place in the market. With sales jumping from fewer than a thousand units in FY23 to over seventeen thousand units in FY24, Hero MotoCorp demonstrated exponential development. In a similar vein, Bajaj's e2w sales increased significantly and surpassed one lakh units in FY24. These changes highlight the conventional automakers' increasing interest in and financial support of the electric car market.
Difficulties Faced by Certain Manufacturers
In the fiscal year 2023–2024, several firms had difficulties despite the e2w market's general expansion. Firms including Okinawa, Hero Electric, and Ampere faced challenges ascribed to the reduction of subsidies and unpredictability in policy. Their sales statistics fell precipitously as a result of these difficulties, underscoring the need for stable and encouraging government policies in promoting the expansion of the electric car industry.
Government Reaction: 2024 Electric Vehicle Promotion Programme
The government unveiled the new Electric Mobility Promotion Plan 2024 (EMPS) in reaction to the changing electric mobility scenario and the end of the FAME plan. The goal of the EMPS, which is scheduled to take effect on April 1, is to encourage and assist the adoption of electric vehicles, including two- and three-wheelers. However because the EMPS gives less incentives than its predecessor did, industry participants are unsure of how well it would encourage the use of electric vehicles.
Industry Reactions and Issues
Industry participants, such as manufacturers and specialists in the field, have given differing opinions about the EMPS 2024 initiative. Some express worry about the qualifying requirements for subsidies and the recertification procedure, while others see its potential to alleviate industry uncertainty and boost demand for electric vehicles. To avoid the requirement for recertification, Nikhil Bhatia, co-founder and chief operating officer of HOP Electric Mobility, proposed extending the certification of cars that had previously been approved under the prior system. These issues show how important it is to have consistent, unambiguous rules in place to encourage the long-term expansion of India's electric car market.
Obstacles and Financial Savings
Manufacturers have technological and financial difficulties in scaling up production and bringing down the price of electric vehicles in addition to policy-related difficulties. In 2022, thirteen e2w producers faced penalties and refusal of government payment when it was alleged that they had misappropriated subsidies. Inconsistencies in the certification procedure were also found, underscoring the necessity of responsibility and openness in the sector. Industry insiders do, however, point to a large drop in production costs because of economies of scale and falling prices for necessary parts like batteries. As manufacturing volumes rise and technology develops, this trend is anticipated to continue, bringing down the price of electric vehicles and increasing their accessibility for customers.
The fiscal year 2023–2024 saw a sharp increase in sales of electric two-wheelers, which is indicative of India's rising acceptability and enthusiasm for electric cars. The future of the electric car industry is bright, with startups such as Ola Electric leading the way and established manufacturers like Hero MotoCorp and Bajaj Auto growing their market share. Nonetheless, there are still difficulties, such as unknown policies, technological difficulties, and financial concerns. To solve these issues and promote sustainable growth in the Indian automotive sector, cooperation between industry participants, legislators, and other influential figures will be necessary to establish a sustainable environment.
