The emergence of startups ignited the transformative journey of India’s electric two-wheeler sector, setting the stage for a significant shift from traditional modes of transportation. However, established players from the era of internal combustion engines, such as TVS Motor Co. Ltd and Bajaj Auto Ltd, are rapidly making inroads, challenging the early leads of startups like Ola Electric. Despite this competition, Ola Electric has managed to maintain its position at the forefront of the market. TVS Motor, in particular, has made remarkable strides, ascending to the rank of India’s second-largest electric two-wheeler manufacturer in recent months and is swiftly narrowing the lead held by Ola Electric. Bajaj Auto has also made significant progress, securing the third position in October and pushing Ather Energy down to fourth place in the market standings.
The market dynamics are reflected in the shifting market shares. Ola Electric saw its three-month rolling average market share decrease from a peak of 34% in August to 30% in October. Ather Energy also experienced a decline, with its share dropping from 13% to 11%. On the other hand, TVS Motor’s share in the electric two-wheeler market saw a substantial increase, soaring from 14% in January to an impressive 24% in October. Bajaj Auto’s market share experienced a threefold increase, climbing from 4% to 11%, according to Vahan data on three-month rolling automobile registrations.
In October, the combined sales of four major companies—Ola Electric, TVS Motor, Bajaj Auto, and Ather—constituted 77% of the total 74,261 electric two-wheelers sold in India. This is a consolidation from June, where five companies shared this percentage of the market. Since June, the leading companies have fortified their market positions by ramping up production, expanding distribution networks, launching new products, and introducing diverse price points. In contrast, other players like Greaves’s Ampere, Okinawa Autotech, and Hero Electric faced challenges due to the government’s scrutiny over their claims of FAME-II incentives, adversely impacting their sales figures.
The sales trajectory of electric two-wheelers in October showed a 17% increase from the previous month, although there was a 4% decrease compared to last year. This variation was attributed to the earlier onset of the festive season in the previous year. The trend in the traditional internal combustion engine two-wheeler segment also indicated a year-on-year decrease of 16% despite a month-on-month increase of 10%.
The penetration rate of electric two-wheelers in October reached 5.1%, which rose from 4.8% in September. This gradual but steady increase in market penetration underscores a growing consumer shift towards electric two-wheelers, motivated by the environmental benefits, lower operational costs, and ongoing enhancements in the electric vehicle infrastructure. This shift persists even in the face of reduced FAME-II subsidies, which have momentarily dampened the market’s expansion.