The electric two-wheeler industry in India saw a significant drop in sales in April 2023, with registrations declining by over 20% compared to the previous month. According to data on the VAHAN portal, registration of only 66,466 electric two-wheelers were made in April. It is a significant drop from the 86,151 E2Ws registered in March 2023. Ola Electric was the only one to register more than 10,000 vehicles among the manufacturers.
Reasons for Sales Decline!
The decline in sales can be due to various factors, including the rising prices of electric vehicles. Other factors include a lack of charging infrastructure and the recent controversies surrounding some of the prominent players in the industry.
Ola Electric again gained the lead, with the registration of 21,882 units of its S1 electric scooter. The Ola Electric scooters were 1/3rd of the scooters registered in April. In a statement, Ola said, it dispatched 30,000 scooters in April. It will soon be planning to open its 500th experience center, with an eye on having 1000 such centers by August 2023.
A distant second was Greaves Electric Mobility's brand, Ampere EV, registering 8,869 units. Ampere is an electric two-wheeler brand that recently saw allegations of subsidy misappropriation being probed by the government for this issue. Currently, it retails three models, the Magnus EX, Zeal EX and Primus, launched recently.
Ampere, with its performance, pushed TVS into third place, witnessing a massive failure in registration. TVS IQube registered 8728 units in April, a 48% drop compared to March's 16863 units.TVS said that IQube recorded 100,000 units in March, but the April sales declined due to the AIS-156 changeover and challenges faced in the supply chain.
The company that registered 7746 units less in April was Ather Energy, with its 450X electric scooter seeing a fall of 36% from March. Ather, with TVS, Ola Electric, and Hero Motocorp Vida, sold chargers at an additional cost. It does not comply with the FAME II guidelines and is subject to scrutiny from authorities. After this, the startup gave the bundled charger with the Ex-Showroom cost of its Electric Scooter.
The latest data of registration in the VAHAN portal, Bajaj Auto's Chetak electric scooter, saw a rise in registrations to 4,013 units, helping the company secure the fifth position in the sales charts for April 2023.
Hero Electric sold 3,331 electric scooters, while Okinawa sold 3,216 units. Both Hero Electric and Okinawa are facing scrutiny from the government for alleged subsidy misappropriation, which could potentially result in their debarment from the FAME-II scheme.
The Ministry of Heavy Industries has notified Hero Electric and Okinawa to recover subsidies claimed since FY20. This could pose additional challenges for the two manufacturers struggling without subsidies. That’s the reason why Okinawa had to raise the prices of its models significantly a few months ago.
Units Registered by Leading Two-Wheeler OEMs
The Table below shows the Brands and the Units sold by them in April 2023
|Brands||Number of Units Registered|
|TVS Motor Company||8,728|
Society of Manufacturers of Electric Vehicles in a letter to Parliamentary Standing Committees on Industry, Energy, and Estimates. The letter shows that electric two-wheeler manufacturers in India have passed on over Rs 1,400 crore worth of subsidies to customers.
SMEV also explains that out of 9.6 lakh electric two-wheelers sold under the FAME-II scheme between April 2019 and 2023. Around 5 lakh E2W vehicles got funds under the scheme, resulting in a shortfall in target by half.
The suspension of subsidies caused difficulties for numerous manufacturers who heavily depended on them to maintain their businesses. The SMEV has been vocal in expressing the obstacles manufacturers face in the absence of subsidies.
It also urges the government to provide prompt assistance to the industry. The liquidity crisis has compelled various companies to downsize their activities. It also made them postpone their growth plans, ultimately affecting the sector's development.
Did you know — TVS Motor Records 3.70% YoY Sales Surge in April 2023, Despite 3.45%, MoM Drop.
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