Electric two-wheelers are gaining traction in sales, where as those powered by internal combustion engines (ICE) are feeling the heat, with sales going down by 11% in FY22 from earlier year. Sales of ICE-powered vehicles such as passenger vehicles, three-wheelers and trucks all grew in the same period. While two-wheeler EVs have hit a speed bump, after a spate of battery-related fires, traditionally powered scooters and bikes have been losing shine, said experts.
“ICE sales being down is the consequence of multiple factors which are primarily economic in nature as the industry was in decline before both Covid and electric. Consumers in some geographies are actively considering EV adoption, resulting in postponement of buying decisions ..
Experts say that they are expecting a further growth in EV vehicles over time. “The current fiscal will see record sales of 8 lakh e-two wheelers (both high and low speed). As consumer choice grows, the market is growing at an even faster pace,” said Sohinder Gill, CEO, Hero Electric & President, SMEV.
Other electric players are also optimistic about sales. “2-wheeler EV sales in April 2021 were around 5,000 units and in March 2022, it went up to almost 50,000 units. The market share also went up from 1.2-1.5% in March 2021 to almost 12% in March 2022 (as per Vahan Data)”, said Ravneet Phokela, Chief Business Officer, Ather Energy.
There is more demand than supply for EVs, said Gill of Hero Electric, which was unable to dispatch any vehicles in April 2022 due to a shortage of semi-conductor chips. Many e-two wheeler makers are working at 40-50% production as non-availability of chips forces them to cut production.
