Electric Two-Wheeler Sales in India FY24: A Record Year Fueled by Pre-Subsidy Rush

The Indian electric two-wheeler (e2w) market witnessed a phenomenal year in FY24 clocking record sales of over 9.44 lakh units. This surge was largely driven by a significant spike in March 2024 where sales hit a new high of 1.36 lakh units.

March Madness: Pre-EMPS Rush

This March surge wasn't a coincidence. It mirrored a similar trend in May 2023 just before a significant reduction in FAME II subsidies. This time buyers rushed to dealerships to avoid potential price hikes anticipated with the implementation of the new Electric Mobility Promotion Scheme 2024 (EMPS) starting April 1st 2024.

The EMPS offers a subsidy of Rs 5 000 per kWh with a cap of Rs 10 000 per vehicle. However unlike the previous scheme this subsidy is likely to result in price increases as manufacturers may offset the lower subsidy with higher sticker prices.

OEMs Cash In on the Opportunity

Aware of this price sensitivity leading electric two-wheeler manufacturers (OEMs) strategically rolled out attractive offers in March to maximize sales. This tactic proved successful as evident from the record-breaking sales figures.

Dominant Players: Start-Ups and Legacy Brands

While there are over 175 players in the Indian e2w market four stand out for their significant contribution:

- Ola Electric & Ather Energy (Start-Ups)
- TVS Motor Co. & Bajaj Auto (Legacy Players)

These four companies not only achieved six-figure sales figures individually but collectively accounted for a whopping 77% (7 24 662 units) of the total FY24 sales.