The number of deliveries decreased by 2.63% to 65,111 units, a drop from the previous year’s 66,873 units. This decline is occurring against a backdrop of worries about diminished government subsidies and the increasing prices of electric two-wheelers.
In April, the Indian electric vehicle (EV) sector, which is predominantly driven by electric two-wheeler sales, observed a marginal decrease in its sales figures in comparison to the corresponding month of the previous year. This information was disclosed by the Federation of Automobile Dealers Associations (FADA) on Thursday.
The number of electric two-wheelers delivered to customers saw a reduction of 2.63%, with sales numbers dropping to 65,111 units from the 66,873 units sold in the same period last year. This downturn is attributed to apprehensions about the diminishing subsidies provided by the government and the escalating prices of electric two-wheelers.
Post-July, after the expiration of the Electric Mobility Promotion Scheme 2024 (EMPS), there’s been a cloud of uncertainty over the continuation of the demand subsidy offered by the government. The EMPS was introduced as a four-month interim measure following the conclusion of the FAME 2 scheme on March 31.
The future of the subsidy program remains uncertain, with questions looming over whether the EMPS will be prolonged or if a third phase of the FAME initiative will be introduced by the newly elected government during the full budget presentation for the fiscal year 2025 in July. It is noteworthy that the subsidy amount under the new scheme, which became effective on April 1, has been reduced to Rs 5,000 per kWh from the previous Rs 10,000 per kWh, with a cap of Rs 10,000 per vehicle.
Despite the dip in the two-wheeler segment, the broader EV market showcased impressive growth across other categories. Sales of electric three-wheelers experienced a boost of 10.36%, reaching 42,030 units, and the electric passenger vehicle segment witnessed a substantial increase of 22.79%, with 7,415 units sold. The electric commercial vehicle sector also showed remarkable performance, with a sales increment of 43.3% to 510 units.
FADA India, the umbrella organization representing over 15,000 automobile dealerships and more than 30,000 dealership outlets across the country, including various regional, state, and city-level automobile dealer associations, stands as a testament to the vastness of the auto retail industry. Collectively, FADA claims to provide employment to approximately 4.5 million individuals through its network of dealerships and service centres.
