The electric two-wheeler industry in India witnessed a significant sales resurgence in August 2023, marking a notable recovery after the challenges posed by the 25% reduction in the FAME II subsidy in June, resulting in a 56% month-on-month decrease and an 11-month low of 45,734 units. With a sales figure of 62,455 units and a month-on-month growth rate of 14.57% (compared to 54,508 units in July 2023), August 2023 provides compelling evidence that India's electric two-wheeler sector is back on track.

Analysing the data of sales which was taken from Vahan portal, it becomes evident that the momentum carried into July and August, reflecting the industry's resilience. Cumulatively, sales for the first eight months of CY2022 reached 552,439 units, an impressive 54% increase compared to the 359,170 units sold during the same period in 2022. Notably, this total represents 87% of the record-breaking 631,169 units sold in CY2022.

As we enter the final quarter of the year and embrace the festive season, which began with Onam and continues into October, it is reasonable to anticipate that the electric two-wheeler industry could conclude CY2023 with total sales ranging from 750,000 to 800,000 units. This projection corresponds to a year-on-year growth rate of 18% to 25%. Furthermore, with monthly retail figures likely to improve, this resurgence is excellent news for e-scooter and motorcycle manufacturers.

Although the market boasts over 150 players, the lion's share of sales is claimed by a mere 10% of them. Among the top 25 OEMs, the top 10 players accounted for a staggering 90% of total sales, totalling 494,862 units in January-August 2023. Only two companies, Ola Electric and TVS Motor Co, achieved sales exceeding 100,000 units.

Ola Electric, the market leader, solidified its position with 163,962 units, particularly evident in the post-June period when the FAME subsidy was reduced by 25%. During this period, Ola Electric reported robust sales figures in July (17,656 units), July (19,345 units), and August (18,657 units). Given the burgeoning demand for its new range of products, Ola Electric is poised to exceed 20,000 units per month starting from September. Currently, Ola commands a 30% market share.

TVS Motor Company, with a total of 102,869 units sold in January-August 2023, possesses an 18.62% market share, achieved primarily through its single product, the iQube. The company recently unveiled its premium EV flagship, the TVS X, priced at Rs 250,000, in Dubai.

Securing the third position is Ather Energy, a Bengaluru-based smart e-scooter OEM, with 73,036 units and a 13% market share. Ather Energy has been proactive in facilitating easy financing options for potential buyers, including 100% on-road financing and a 60-month loan product in collaboration with various banks.

Ampere Vehicles ranks fourth with 41,302 units and a 7.47% market share. The company's Ampere Primus e-scooter, launched in February, has garnered substantial traction, featuring a mid-mounted motor with impressive performance capabilities.

Bajaj Auto, having scaled up Chetak scooter production and expanded its network, boasts 33,425 units, equating to a 6% market share. Chetak sales have shown signs of improvement, particularly with 6,549 units sold in August, hinting at stronger numbers during the festive season.

Following Bajaj Auto is Okinawa Autotech with 25,769 units, Hero Electric with 27,065 units and Okaya with 12,059 units. Greaves Electric Mobility, on the other hand recorded an identical figure of 12,059 units as that of Okaya during the same period. Closing out the top 10 is Bgauss Auto with 6,526 units.

In conclusion, the electric two-wheeler market's sales resurgence in August 2023 signals a positive trajectory for the industry. With the festive season underway and the potential for further growth, key players are making significant strides in maintaining their market dominance, further solidifying the sector's position in India's evolving mobility landscape.

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