India's registrations for electric 2-wheelers increase by 148% in May

1 Jun 2023 , 12:09 PM

While total e-2W (electric two-wheelers) gained 11% YoY (Year over Year) and 21% MoM (Month over Month) in May 2023, registrations for electric high-speed scooters increased by 148% YoY and 57% MoM, reaching 1,04,771 units. This significant growth can largely be attributed to pre-buying before the price increases on June 1st.

In May 2023, the penetration of EV 2Ws increased to 7.0% from 5.4% in April 2023.

According to an analysis by Elara Capital, Ola Electric retained the top rank with 28,438 registrations in May 2023, commanding a market share of 27.1%. TVS Motors secured the second position with 19.3%, followed by Ather Energy with 14.6%, Bajaj Auto with 9.5%, and Ampere with 9.2%.

The majority of EV OEMs (Original Equipment Manufacturers) anticipate price increases in the range of INR 15,000 – 30,000 (approximately 10-15%), leading to pre-buying in May 2023 in anticipation of the lowered subsidy standards that would come into effect on June 1, 2023. Several companies, including TVS, Ather, Ola, and Ampere, have adjusted their prices accordingly. However, Hero Electric has stated that it will not accept any price increases.

According to SMEV (Society of Manufacturers of Electric Vehicles), subsidies totaling INR 12 billion from 13 EV OEMs are currently on hold due to violations of localization regulations and financial embezzlement.

The delay in subsidy payments has caused liquidity issues for OEMs, resulting in production reductions and a decline in EV sales. To address this problem, manufacturers are introducing low-speed EV scooters.

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