Electric two-wheeler sales to cross 1 million units in FY24-25
ICRA expects the penetration levels of e2w to reach 68% in FY25
Electric twowheeler vehicle sales are nearing the one million mark with FY202324 recording 8.51 lakh registrations in India.
According to Vahan data, which tracks vehicle registrations in the country, in FY202223, 7,25,297 electric twowheelers were registered compared with only 2,50,219 units registered in FY202122.
The uptick in sales was despite the reduction in FAMEII subsidy in 2023.
RISE IN PRICES
Sales, which saw a drop in June after the subsidy was reduced, witnessed a pick up from August 2023 with over 91,852 electric twowheelers registered in November.
Rating agency ICRA expects the penetration levels of electric twowheelers to reach 68 per cent in FY25 compared with approximately 5 per cent at present.
However, prices of electric twowheelers could increase with the extension of the FAMEII subsidy getting over on March 31.
“The government’s announcement to offer incentives under a new scheme for electric twowheelers and threewheelers just before the FAMEII scheme is about to end will continue to provide a disruptionfree environment for electric twowheeler OEMs. OEMs will continue to offer competitive products by leveraging their cost structure through localisation of key components and value engineering capabilities. The longterm potential for the e2W segment remains favourable aided by i) improving cost of ownership visavis ICE vehicles and ii) enhanced customer confidence about range anxiety, financing avenues, and other vehicle attributes such as safety. In addition, the government’s focus on promoting electric vehicles through various initiatives (including PLI) will continue to drive electric vehicle adoption over the medium term,” said Shamsher Dewan, Senior Vice President and Group Head – Corporate Ratings, ICRA.
businessline had earlier reported that electric twowheeler companies are looking s to increase prices by 25 per cent and would focus on the premium vehicle segment.