Electric two-wheeler sales grow by 33% in 2023-24

In 2023-24, 9,10,930 electric two-wheelers were sold, as compared to 6,82,937 of the previous fiscal year

April 2, 2024

Ola Electric emerged as a dominant force in the market, accounting for over 3 lakh units in FY 24

TVS Motor Company, Bajaj Auto, and Hero MotoCorp also made significant strides in market share during the fiscal year

As the government's FAME scheme concluded on March 31st, 2024, a new initiative, the Electric Mobility Promotion Scheme 2024 (EMPS), was introduced effective April 1st, 2024

The EMPS offers lower subsidies compared to its predecessor, with an outlay of INR 500 crore to provide subsidies for approximately 3.72 lakh electric two and three-wheelers

The electric two-wheeler market in India experienced a remarkable surge, with sales soaring by an impressive 33.3% year-on-year in the fiscal year 2023-24. According to data from the Vahan portal, there was a significant growth from 6,82,937 units in 2022-23 to 9,10,930 units in 2023-24, indicating a substantial increase in consumer adoption of electric vehicles.

Ola Electric emerged as a dominant force in the market, accounting for over 3 lakh units in FY 24. TVS Motor Company, Bajaj Auto, and Hero MotoCorp also made significant strides in market share during the fiscal year 2023-24. TVS secured the second position, while Hero MotoCorp witnessed exponential growth, and Bajaj Auto crossed the one lakh unit mark in electric two-wheeler sales. Ather, another key player, demonstrated impressive growth as well.

As the government’s FAME scheme concluded on March 31st, 2024, a new initiative, the Electric Mobility Promotion Scheme 2024 (EMPS), was introduced effective April 1st, 2024. The EMPS offers lower subsidies compared to its predecessor, with an outlay of INR 500 crore to provide subsidies for approximately 3.72 lakh electric two and three-wheelers.

The reduction in subsidy amounts over time, along with decreasing battery costs, which now represent only a third of two-wheeler production costs, have contributed to the growth of the electric two-wheeler market in India. Despite challenges, the sector is poised for continued expansion as consumer interest in sustainable transportation solutions continues to rise.

Source: Economic Times

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