Electric Two-Wheeler Sales Driving Indian Auto Industry Growth in April 2024

The Electric Two-Wheelers Sales in April 2024 saw a significant decline, with just over 65,057 units sold, marking a 4 percent drop from the 139,288 units sold in March.

May 23, 2024. By Aishwarya

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articles

Electric Vehicles

E-Mobility

Decarbonisation

Electric Two-Wheelers Sales

Electric Mobility Promotion Scheme

The Indian auto industry sold 21,36,157 units in April 2024, achieving a year-on-year growth of approximately 25 percent. According to data from the Society of Indian Automobile Manufacturers (SIAM), the industry collectively sold 21,36,157 vehicles last month, up from 17,12,812 vehicles sold in April 2023.

In April 2024, passenger vehicle sales reached 3,35,629 units, marking a modest 1.3 percent growth compared to the 3,31,278 vehicles sold in the same month in 2023. However, the two-wheeler segment was the primary driver of overall growth. Last month, the auto sector sold 17,51,393 two-wheelers, representing a significant growth of nearly 31 percent compared to the 13,38,588 units sold in April 2023.

Decline in Electric Two-Wheelers Sales in April 2024

The Electric Two-Wheelers Sales in April 2024 saw a significant decline, with just over 65,057 units sold, marking a 4 percent drop from the 139,288 units sold in March. This decrease was expected due to the end of the FAME-II subsidy scheme in March, which had spurred a surge in purchases.

Seasonal Slowdown and Election Impact

April is traditionally a slow month for vehicle sales in India as it marks the beginning of the fiscal year. The Electric Two-Wheelers Sales in April 2024 were also affected by the ongoing election season, further contributing to the decline in demand.

Despite the overall decline, Ola Electric dominated the market with 33,957 units sold, achieving a remarkable 52 percent market share in the Electric Two-Wheelers Sales in April 2024. Ola's decision not to increase prices despite reduced subsidies helped maintain its strong market position.

Despite facing a 36.4 percent decline in month-on-month growth, Ola Electric still holds the top position in market share, underscoring its effective strategic planning and execution. The company's CEO noted that in April, every second two-wheeler EV registered in India was an Ola S1, showcasing the brand's significant market presence and strong customer preference.

TVS Motor Co. secured the second spot with 7,655 units sold, accounting for 12 percent of the Electric Two-Wheelers Sales in April 2024. The continued popularity of the TVS iQube e-scooter contributed significantly to their sales.

Bajaj Auto followed closely with 7,517 units sold, placing them third in the Electric Two-Wheelers Sales in April 2024. The Bajaj Chetak variants, Urbane and Premium, were instrumental in achieving these numbers, supported by an expanded dealer network and increased production.

Ather Energy, with 4,055 units sold, held the fourth position in the Electric Two-Wheelers Sales in April 2024. The launch of Ather's new Rizta models, featuring advanced battery configurations and extended range, helped maintain their market share.

Greaves Electric Mobility launched the Nexus family scooter, contributing 2,675 units to the Electric Two-Wheelers Sales in April 2024.

Wardwizard Innovations, now holding the sixth position, has seen a significant increase in demand, achieving its best monthly sales figures for the first four months of 2024 with 1,205 units sold in April. The company, which was previously at the last position, has risen to sixth place, demonstrating an 18 percent month-on-month growth and a 2 percent market share.

Hero MotoCorp has dropped to the seventh position in April, with sales of only 946 vehicles. Facing a negative 77 percent month-on-month growth and holding just a 1 percent market share, the company is encountering challenges in the competitive EV market. In response, Hero MotoCorp has introduced the Vida Advantage offer, which provides customers with an enhanced ownership experience through benefits and services worth INR 27,000, valid for 5 years.

Influence of the Electric Mobility Promotion Scheme (EMPS)

The Electric Two-Wheelers Sales in April 2024 were influenced by the introduction of the Electric Mobility Promotion Scheme (EMPS), effective from April 1 to July 31, 2024. This scheme aims to support the purchase of 372,000 EVs, including 333,000 two-wheelers, with a subsidy of INR 5,000 per kWh.

Future Outlook

Looking ahead, the Electric Two-Wheelers Sales in April 2024 set the stage for the coming months. As manufacturers adjust to reduced subsidies and higher prices, market dynamics are expected to evolve. The Electric Two-Wheelers Sales in April 2024 indicate a challenging yet promising landscape for electric mobility in India.

In summary, the Electric Two-Wheelers Sales in April 2024 reflect the industry's adaptation to new fiscal policies and market conditions. Despite a slow start, the sector is poised for growth as consumer interest in eco-friendly and cost-effective transportation solutions remains strong. The Electric Two-Wheelers Sales in April 2024 highlight the resilience and potential of electric mobility in shaping the future of transportation in India.