In March 2024, the Indian electric two-wheeler industry experienced its highest-ever monthly sales, surpassing the 1 lakh mark for the second time. This surge coincided with the conclusion of the FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India) subsidy by the end of the financial year.
March 2024 witnessed electric two-wheeler sales of 1,39,288 vehicles, a substantial increase from 86,358 vehicles sold in March 2023, marking a remarkable 61% year-on-year growth.
EMPS Replaces the FAME Scheme
The cessation of the popular FAME subsidy scheme, designed to incentivize the adoption of electric vehicles, has paved the way for the Electric Mobility Promotion Scheme (EMPS) 2024. Announced during the interim budget in February, EMPS 2024 commenced on April 1, 2024, and remains effective until July 31, 2024.
Under EMPS 2024, the subsidy for electric two-wheelers is set at INR 5,000 per kilowatt-hour of battery capacity, with a cap of INR 10,000 per vehicle. This marks a reduction compared to the incentives offered under the previous FAME scheme.
Ola Electric Surpasses 50K Mark
Ola Electric, a frontrunner in the Indian electric two-wheeler segment, achieved its highest-ever monthly sales in March 2024, surpassing the 50,000 vehicle milestone for the first time. With 50,545 vehicles sold, Ola Electric exhibited significant growth from the 33,923 vehicles sold in February 2024.
In FY24, Ola Electric concluded the year with sales of 3,26,428 vehicles, becoming the first company to exceed the 3-lakh mark. This marks a substantial increase from the 1,72,791 vehicles sold in FY23, reflecting a growth rate of nearly 90%. Ola Electric currently holds a 35% market share in the Indian electric two-wheeler segment, a notable increase from its 24% market share in FY23.
TVS Motor Claims Second Position
TVS Motor achieved its highest-ever monthly sales of 26,478 vehicles in March 2024, driving its FY24 sales to 1,82,933 vehicles, up from 82,108 vehicles in FY23, demonstrating a growth rate exceeding 122%. With this performance, TVS Motor secured a market share of nearly 20% in FY24, up from 19.4% in FY23.
Ather Energy Emerges Third
Ather Energy emerged as the third-largest player in FY24, with sales of 1,08,870 vehicles, up from 76,939 vehicles in FY23, representing a growth rate exceeding 40%. The company attained a market share of 12% in FY24, up from 10.6% in FY23. However, despite achieving its highest-ever monthly sales, Ather Energy conceded the third position to Bajaj Auto in March 2024, with 17,221 vehicles sold.
Bajaj Auto Secures Fourth Position
Bajaj Auto, renowned for its Chetak electric scooter, claimed the fourth position in FY24, selling 1,06,431 scooters, a significant increase from 28,357 scooters sold in FY23, marking a remarkable growth rate of 275%, the highest in the industry. With this performance, Bajaj Auto garnered a market share of 11.3% in FY24, up from 4% in FY23. In March 2023, the company sold 17,933 scooters, maintaining its lead over Ather Energy for the sixth consecutive month.
The electric two-wheeler industry’s remarkable growth in March 2024 underscores the sector’s resilience and potential for further expansion, despite changes in subsidy schemes and intensifying competition among key players.
