According to SMEV, sales of electric two-wheelers in India increased by more than 2.5 times to 8,46,976 units in 2022–23 compared to the previous fiscal year.
According to a report released on Monday by the Society of Manufacturers of Electric Vehicles, sales of electric two-wheelers increased by more than 2.5 times over the previous fiscal year in India, reaching 8,46,976 units. 3,27,900 units of e-two-wheelers (E2W) were sold overall in 2021–22. The Society of makers of Electric Vehicles (SMEV), citing data from the makers, said that in FY23, 1.2 lakh low-speed (LS) e-scooters with a top speed of less than 25 km/h were sold.
“In the electric two-wheeler segment, the industry sold 7,26,976 high-speed E2W (top speed more than 25km/hr) in FY 2023,” it added. In 2021-22, sales of low-speed e-scooters were at 75,457 units, while those of high-speed e-scooters were at 2,52,443 units. SMEV states, in FY23 E2W adoption ended “with an annual shortfall of more than 25 percent over the minimum target set by Niti Aayog and various research organisations.”
The trade group claimed that the withholding of FAME II subsidies for failure to adhere to the scheme’s Phased Manufacturing Programme (PMP) standards had a negative effect on sales of E2Ws. Ironically, it wasn’t consumer demand that caused the unexpected withholding of more than the Rs 1,200 crore subsidy that most original equipment manufacturers (OEMs) had previously passed on to customers under the excuse of a delay in localization, the statement stated.
The alleged under-invoicing of OEMs working in the premium end resulted in a further Rs 400 crore of their company operations being crippled due to a severe lack of working capital, SMEV added.
The market is anxiously awaiting clarity on the government’s decision to continue the FAME programme, according to SMEV, who also noted that it is a crucial decision that will determine the future of the entire industry. It was stated that it is essential to extend the FAME programme for at least 3 to 4 years in order to promote the growth of the EV ecosystem and make it self-sustaining.
One of the main issues in the supply chain, according to the EV industry association, is the lack of sufficient local production capacity for essential components like batteries and motors. “The industry suffered greatly to find high-quality components during COVID due to supply chain interruptions,” it was said. The current subsidy system, in which manufacturers pass the subsidy on to the buyer and then claim it from the government after the sale, also needed to be corrected, according to SMEV.