electric two-wheeler sales: April electric two-wheeler sales halves on month

Electric two-wheeler sales fell nearly 50% in April from the previous month, as a seasonal slump was exacerbated by a shift in subsidies for the industry.

Electric scooter sales totalled just over 64,000 last month, with market leader Ola Electric accounting for more than 33,000 of those. However, Ola itself saw its sales retreat from a record high of over 50,000 units in March.

In March, electric two-wheeler makers had sold more than 136,000 units, the highest on record for a month, according to vehicle registration data from the government’s Vahan portal.

Legacy firms like Bajaj and TVS Motors also saw a slump in their electric two-wheeler sales last month. Bajaj sold just over 7,500 units in April, compared with more than 18,000 in the previous month. At TVS, sales fell to 7,600 units from around 26,000 in March.

Ather Energy, which recently entered the large family scooter market with its latest product, Rizta, sold more than 4,000 units in April, less than a fourth compared with over 17,000 units in March.

The drop in sales was due to a number of factors, a senior executive at an electric scooter maker said. April is usually a sluggish month, but firms were also slowing down production and rethinking their strategy as the industry shifted from one subsidy to another, the executive added.

On March 31, the FAME-II subsidy programme ended, giving way to the Rs 500-crore Electric Mobility Promotion Scheme (EMPS) from the Ministry of Heavy Industries. Under EMPS 2024, a support of up to Rs 10,000 per two-wheeler will be provided for over 300,000 units. The new subsidy does not cover unsold vehicles that were manufactured before April 1, which also led to firms slowing down their manufacturing and sales, while awaiting further clarity on subsidies.The electric two-wheeler market grew 30% in the year ended March 31 from fiscal 2023, selling more than 940,000 units. It has also continued to garner investor interest, as ET had earlier reported. Ather Energy is finalising plans to raise $75-90 million, while Ola Electric is awaiting the market regulator’s approval for an initial public offering.