Electric Two-Wheeler Sales Hit New Highs In 2024

The sales of electric two-wheelers reached an all-time high in FY24, following the trend of record sales in the past three years.

Cumulative sales of electric two-wheelers stood at 9,44,400 units during the fiscal. Ola Electric, TVS Motors Co., Ather Energy Pvt. and Bajaj Auto Ltd. were the top contributors in the segment.

Here's a look at the sales figures of some players and what lies ahead:

The company sold 3,26,589 vehicles in FY24— more than double from the previous fiscal. It has roughly 35% of market share and is the leader in the electric two-wheeler space.

The company has been a key beneficiary of the Production-linked incentive scheme, which has helped it get an edge over its peers on final pricing for consumers. It received its second PLI benefit for achieving the domestic localisation target, which essentially means sourcing the components locally.

Ola Electric has a manufacturing capacity of 10 lakh scooters in Tamil Nadu, which the company is looking to double soon.

New launches as well as any effect of reduced incentives as part of a new scheme is a key monitorable.

TVS Motors's electric two-wheeler sales grew 123% to 1,82,986 units in FY24.

The company started out as the number five player in the segment, but thanks to strong products in I-Qube and distribution, it has become the number two player, with 19% market share.

The company sold an average of 5,000 vehicles at the start of FY24, according to its exchange filing, and gradually increased the monthly run rate to achieve this growth. It compares with 80,000 vehicles sold in FY23.

It recently launched the TVS X Smart, which is a premium electric scooter, priced at Rs 2.5 lakh. It expects multiple launches in the new fiscal, it said in its earnings conference call.

Ather sold 1,08,889 vehicles in FY24—a 42% rise, as compared with last year.

The company's sales growth has paled in comparison to other players, especially its private market peer Ola, while legacy automakers like TVS and Bajaj are now competing head-on with it.  

While its market share has risen by 1%, it is largely competing with players like Ampere and Hero Electric (Hero Motocorp Ltd. is a different company from it), which are struggling to even maintain their last-year sales.

With the new Electric Mobility Promotion Scheme being a lower-subsidy one, as compared with the erstwhile FAME 2 Scheme, it will need to fight the hardest to grow in FY25.

Bajaj Auto's launch of the Chetak brand bode well for sales, which tripled growing 273% to 1,06,507 units in FY24.

Its market share has risen to 11% from 4% last year. New launches in this space will be key for the company, as it only has the Chetak brand in the electric two-wheeler space.

The new Electric Mobility Promotion Scheme 2024 offers half of the direct subsidy, capping it at a fixed sum for consumers.

While the ending of FAME 2 did boost the month-end sales of all players, it would be worth noting if the lower incentives affect sales.

Cheaper batteries for companies have brought down prices since the start of the year, with Ola Electric and Ather Energy cutting prices by up to Rs 20,000 on select models.

Apart from the new EMPS Scheme, it would also be worth noting how other peers fare against the market leaders.

Players like Okinawa and Ampere have reported sales drop of more than 70% as compared with last year. Legacy player Hero Motocorp, with its product Vida, has fared well and sold 17,695 two-wheelers—a 1,780% growth, albeit on a lower base last year. Compared to other legacy players, the company has been slower in the electric two-wheeler segment.