Undoubtedly, electric vehicles are the future but for now, electric vehicles are facing setbacks due to high prices. In addition, the subsidy on the electric vehicles was also reduced. Since electric two-wheelers were launched in the market, the electric two-wheeler faced setbacks due to subsidy reductions on them. But recently, electric vehicles showed signs of recovery. In addition, the electric vehicle manufacturing companies are also gearing up to launch new low-cost electric vehicles. Despite subsidy reductions on the cost of electric vehicles, electric two-wheelers witnessed a gain of 20 percent this year from the previous year. People who are scrambling to the web regarding the low-cost electric two-wheeler vehicles are suggested to go through this article till the end.
Electric 2-wheeler Vehicles’ Sales Increased by 2 Percent
Yes, you heard it right, electric two-wheeler vehicles registered a surge of 2 percent in sales from the preceding month. In the last month, a total of 63,716 electric vehicles were sold, 2 percent higher than the preceding month, said a data shared by the government’s Vahan database. However, the report also suggested that the ICE (internal combustion engine) two-wheeler increased by 22 percent amid the festive season boosting demand for the vehicles. Swipe down the page and read more details.
The sales of electric two-wheelers decreased to 46,000 after the government significantly reduced the incentives it offered for Electric Vehicles. Meanwhile, it resulted in a sudden increase in electric vehicle prices. However, Elara Capital, an equity research firm analyzed and suggested that the average monthly registration rate for E-two-wheelers for the first half of 2023-24 accounted for 66,600 units, which showed a sustained growth in the sales of electric-two-wheeler. In comparison, the average monthly registration rate for the entire 2022-23 was slightly lower at 60,500 units. In India’s total two-wheeler market by the end of September, Electric scooters represented 4.9% marginally 5 percent lower than in August. Consolidation in the electric two-wheeler market continued into September, as a handful of top Electric Vehicles increasingly account for the bulk of sales in the segment.
“Electric two-wheeler volumes continue to see a steady improvement. Post the reduction of subsidy, the volumes for June were at 46,000 units, which improved to 64,000 units in September. The EV contribution is also now at 4.9%, which compares to around 5% in the second half of FY23 when subsidies were higher,” An analyst at Elara Capital named Jay Kale said, “We expect this contribution to inch up further in H2 this fiscal and in FY25 as companies launch models at a competitive price to offset the subsidy reduction impact, and by reducing the battery capacity and implementing cost reduction measures from suppliers to benefit from scale,”