Following the FAME II subsidy reduction, sales of electric two-wheelers, which had seen a major decline in June of this year, are gradually recovering and have increased in July. Despite the drop in subsidies, two-wheeler sales overall in India went up by more than 11 per cent MoM. The FAME II subsidy was reduced from 40 per cent to 15 per cent, which had an immediate negative effect on the country's EV industry by driving up prices significantly and slowing down sales. Several electric vehicle manufacturers used discount offers as a solution to the problem and to boost sales. This action was a favourable approach to bringing in more buyers. It set forth a new trend in the EV market and increased sales this past month.
Electric Two-Wheeler Sales: July 2023
In July 2023, retail sales of electric two-wheelers in India totalled 54,232 units. With an MoM increase of over 11 per cent, sales in the said month slightly increased. In July 2023, nearly 90.43 per cent of all registrations were made by the top ten players in the market. Ola Electric continued to hold the top spot in the segment, ahead of TVS Motors, Ather Energy, Bajaj Auto, and Ampere Electric. The top 3 spots are unchanged from the previous month. Ampere Electric lost to Bajaj Auto and came in fifth spot.
When compared to June's sales of 17,623 units, Ola Electric, a major player in the electric scooter market, posted remarkable sales of 19,237 units last month. This represents a strong 9 per cent month-on-month gain. The growth not only highlights Ola's robust market share but also places it at the forefront of progress in the rapidly changing automotive market. The maker also continued to hold a sizable market share of 40 per cent in July.
With sales of 10,330 units in July, a significant 31% rise over June's sales of 7,857 units, TVS has shown significant growth. The effectiveness and competitiveness of the iQube in the EV sector are reaffirmed by this success. For last month, the firm commanded a 19 per cent market share.
A prominent competitor in the industry, Ather Energy, saw impressive growth in July, with sales approaching 6,607 units. This remarkable number represents a significant 44 per cent MoM increase from the 4,597 units sold in June. The manufacturer's steady expansion strengthened its standing in the sector, allowing it to attain a 12 per cent market share in the previous month.
A trusted name in the auto market, Bajaj Auto, saw a solid 36 per cent MoM rise in July. Sales for the corporation increased from 3,002 units in June to 4,086 units in July, solidifying its place as the dominant player in electric scooters. For the month, Bajaj Chetak obtained an 8 per cent market share.
Ampere Electric experienced slight but consistent growth last month, with sales increasing from 3,042 units in June to 3,571 units in July. Ampere Electric's rise of 17 per cent month-over-month translated into a 7 per cent market share.
A 14 per cent MoM reduction in sales from 2,619 units in June to 2,263 units in July caused Okinawa Autotech to suffer a minor blow. For the month, the company gained 4% of the market.
Hero showed staggering progress by delivering 987 VIDA units in July, an impressive 112 per cent rise from June's 465 units. The same goes for Okaya EV, which recorded sales of 784 units, an increase of 84 per cent MoM from 425 units. The two firms obtained market shares of 2 per cent and 1 per cent, respectively.