Electric two-wheeler industry on the recovery path, Sales up by 72%

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The High-Speed Electric Two-Wheeler (HS E2W) industry is showing signs of revival with recording a sale of 72% in September last on YoY basis.

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The registration stood at 2544 units in September 2020, as against 1473 vehicles sold in the corresponding month of the last year. “We are experiencing huge customers’ interest in greener vehicles as they have seen how the environment looks like when no fuel-guzzling vehicles are running on roads. The upcoming festive season will add to the pent up demand and help OEMs to recover what they lost in the quarter 1 and 2 due to Covid lockdown,” said the Director-General of Society of Manufacturers of Electric Vehicles (SMEV) Sohinder Gill.

The first six months of the Financial Year 21 has been a roller coaster ride for the EV industry. The financial year started with uncertainty due to Covid 19 which led to lockdown in the country. Between the period of April’20 and September’20, the industry registered sales of 7552 HS E2W as against 10161 HS E2W sold in the corresponding months of the last FY.

“One of the main reasons for stagnant sales is attributed to customers not able to buy products due to COVID 19, which led to lockdown in the country. However, the industry has been quickly able to enter the positive curve soon after the government announced the unlock process,” he said.“

Lately, there has been positive news on the EV policy front from the central and state governments that which boasted the confidence amongst OEMs, Component suppliers and investors. In fact, the industry is looking forward to a big push by the government to set right what went wrong with FAME 2 so as to assist the generation of demand which is already showing some green shoots. 

“Some of the measures that could be adopted are removal of the ‘range criteria’ from two-wheelers for a subsidy, reduction of GST on batteries from 18% to 5% when sold separately, mandating delivery businesses to convert their fleets to EVs, promote electric mobility under ‘Swatch Bharat Campaign’ added Sohinder Gill.

The outlook for the FY remains positive as the industry hopes that the recent move by the central government allowing the vehicle to be sold without battery and the announcement of EV policy by Delhi govt would further help the industry to move forward. Also, extending the PMP guidelines would allow the industry to ramp-up production and strengthen the local component market.     

20202019
April672725
May5091539
June12961610
July13431471
August17931343
September25441473
755210161

Disclaimer:

  1. The data doesn’t include a low-speed segment
  2. The above data has been collated from the Govt records of Vahan

OEM wise Market Share Data from April’20 to September’20 as retrieved from VAHAN

OEM NameApril-Sep’20Market Share (%), April-Sep‘20
HERO ELECTRIC VEHICLES PVT. LTD 262935%
OKINAWA AUTOTECH PVT LTD 183624%
ATHER ENERGY PVT LTD 94112%
AMPERE VEHICLES PRIVATE LIMITED 91912%
REVOLT INTELLICORP PVT LTD 5768%
JITENDRA NEW EV-TECH PVT. LTD 1192%
NDS ECO MOTORS PVT LTD 801%
BENLING INDIA 2393%
PURE EV2133%

Source: SMEV ResearchThe performance of the top 3 players in the first six months of FY21 has been down vis-a-vis last year’s corresponding months. The sales of Hero Electric and Ather declined by 16% and 20%, respectively, while Okinawa witnessed the fall of 64%.

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