Electric 2W sales showing signs of recovery post FAME-II subsidy cut

A total of 63,716 electric 2-wheelers were sold in September 2023.

Earlier this year, the government slashed the FAME II subsidy on electric 2-wheelers by 25%. This caused a slump in sales, but the industry is now showing signs of recovery. Electric 2-wheeler sales are almost back to the pre-subsidy cut level.

A total of 63,716 electric 2-wheelers were sold in September 2023. That’s a 20% growth compared to the previous year and a 2% rise over the last month. 

According to media reports, sales stood at 66,600 units in the first half of 2023-24. Post the reduction in subsidy, volumes had dropped to 46,000 units. Electric 2-wheeler sales have been showing a steady improvement since then. E-scooters made up 4.9% of the total 2-wheeler market by the end of September, which compares to around 5% in the second half of FY23 when subsidies were higher.

Ola Electric leads the segment with 18,635 units sold in September 2023. The company has a market share of 29.2%, followed by the TVS iQube with 24.3% and Ather Energy with an 11.2% market share. Bajaj controls 11.1% of the e-scooter market.

Source: Livemint