Sales of electric two-wheelers (e2w) increased significantly in the fiscal year 2023–24, rising from 682,937 units in the previous fiscal year to a total of 910,930 units, a year-over-year rise of 33.3%, as per data from the Vahan portal. With almost one-third of all e2w sales in India during the most recent fiscal year, Ola Electric emerged as a major player. Sales for the company increased from over 1.5 lakh units in FY23 to over 3 lakh units in FY24, almost doubling.
Ola Electric stated that the year prior was significant for the business as well as the electric vehicle (EV) sector. They remained at the top of the market the whole fiscal year, with both volume and market share growing steadily. In the fourth quarter of 2018, there were around 1.20 lakh registrations.
During FY24, established two-wheeler manufacturers like Hero MotoCorp, Bajaj Auto, and TVS Motor Company saw notable increases in their market share. With almost one lakh more units sold, TVS climbed to the second spot and took a fifth of the market. Hero MotoCorp had exponential growth, with sales rising from less than a thousand units in FY23 to more than seventeen thousand units in FY24. Bajaj’s e2w sales increased significantly as well, surpassing one lakh units in FY24. Another important participant, Ather, had remarkable success, breaking through the one lakh unit barrier and challenging Bajaj in sales numbers.
But other big e2w OEMs, such Okinawa, Hero Electric, and Ampere, had difficulties in FY24 as a result of rollbacks in subsidies and unpredictability in policy. As a result, their sales figures dropped sharply.
The government unveiled the new Electric Mobility Promotion Scheme 2024 (EMPS), which will go into effect on April 1, in reaction to the FAME scheme’s termination on March 31. With a four-month validity period ending on July 31 and an INR 500 crore investment to give subsidies for around 3.72 lakh electric two- and three-wheelers, the EMPS offers less subsidies than its predecessor. Two-wheelers can receive a subsidy of INR 5000 per kWh under the EMPS, up to a maximum of INR 10,000 per vehicle and a maximum factory price of INR 1.5 lakh. Nevertheless, there are questions over which cars made in March will qualify for subsidies even though they haven’t been sold, and EV producers are worried about the scheme’s recertification requirements.
HOP Electric Mobility’s co-founder and chief operating officer, Nikhil Bhatia, stated that the new EMPS 2024 program addresses industry uncertainties for a period of four months. He did, however, propose that the certification of vehicles previously certified under the old method may have been extended in order to avoid the need for re-certification. Bhatia expressed optimism that the recertification process would proceed quickly given the scheme’s limited lifespan.
13 e2w manufacturers were accused of misappropriating subsidies by using inadequate localization levels, which resulted in penalties and refusal of reimbursement from the government in 2022. Inquiries also turned up differences in the certification procedure. An industry official reported that economies of scale and falling costs for vital components like batteries had resulted in a notable decrease in manufacturing costs. The cost of producing a two-wheeler now only consists of a third of batteries, as opposed to half as it did previously. From 45% of the car cost, or INR 30,000 per kWh, to INR 15,000 per kWh, and finally to INR 5,000, the subsidy amount has been gradually decreased.
