Electric Two Wheeler Sales Surge 59% in March

Electric Two Wheeler Sales Surge 59% in March

Electric two wheeler (E2W) sales in India jumped 59% in March to 1.78 lakh units, the highest monthly sales after months of stagnation. Market leader TVS recorded a 47% month-on-month increase in sales to 46,859 units, while Bajaj’s E2W sales grew 68% to almost 43K units. Hero MotoCorp’s electric scooter sales almost doubled to 19,764 units.

Details

TVS recently launched a battery subscription model across its entire electric scooter range, including its flagship TVS iQube. The company also introduced the Orbiter V1 electric scooter earlier this month, priced at ₹49,999 if the subscription model is availed. Bajaj launched an affordable electric variant of its classic Chetak scooter in January, aiding its consumer base growth. Ather Energy recorded a 19% uptick in monthly sales to 33.6K units and is planning to launch a more affordable scooter in the coming months. Hero MotoCorp launched a battery as a service model for its Vida range of escooters last year, reducing the initial cost of buying a vehicle.

Company Background

TVS, Bajaj, Ather Energy, and Hero MotoCorp are leading manufacturers of electric two wheelers in India. TVS, founded in 1980 and based in Chennai, is the market leader. Bajaj, founded in 1945 and based in Pune, is the second largest manufacturer. Ather Energy, founded in 2013 and based in Bangalore, is the third largest manufacturer. Hero MotoCorp, founded in 1984 and based in New Delhi, is the world’s largest two-wheeler manufacturer.

Market Context

The surge in E2W sales comes amid growing energy concerns triggered by the ongoing West Asian war. OEMs are trying to decrease the entry cost for E2W adoption through discounts, subsidies, and battery subscription models, a continued barrier toward widespread adoption. The growth in E2W sales is significant as it indicates a shift towards sustainable transportation amidst rising fuel prices and environmental concerns.

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Source: Inc42