The electric two-wheeler (E2W) market in India experienced a remarkable upswing, registering a 17% year-on-year surge in sales volume for December. This surge came on the heels of enhanced electrification efforts after a recent pause, as highlighted in a report unveiled on Wednesday.
MARKET LEADER: OLA ELECTRIC GRABS 40% SHARE
In this burgeoning E2W space, Ola Electric solidified its position as the market leader by volume, significantly boosting its market share to an impressive 40%.
Ola Electric notably secured the highest increase in market share, closely trailed by Bajaj Auto. Conversely, TVS Motor witnessed the most substantial decline in market share, according to the BNP Paribas India EV report. The report attributes Ola’s notable rise in market share to its vigorous marketing campaign dubbed ‘December to Remember.’ This campaign featured aggressive discounts offered to customers, complemented by price reductions on its product lineup.
STRATEGIC PRICE CUTS: OLA SLASHES S1X+ E-SCOOTER PRICES
As part of its strategy, Ola significantly reduced the prices of its S1X+ e-scooters by Rs 20,000 or 18%. Notably, while sales volume declined on a month-on-month basis for most states, Delhi, West Bengal, and Uttar Pradesh emerged as exceptions to this trend.
MARKET DYNAMICS: STATE-WISE PERFORMANCE AND ONGOING TRENDS
Among the states, a decline in sales volume was observed in most regions, except for Delhi, West Bengal, and Uttar Pradesh. Notably, Delhi showcased the most significant improvement in penetration, surging to 19.8% from 6.9% in November, largely propelled by Ola’s efforts.
POTENTIAL CHALLENGES: FUTURE PROSPECTS AMID FAME UNCERTAINTY
The report highlights the ongoing trend of original equipment manufacturers (OEMs) launching lower-priced models and offering aggressive discounts, serving as a catalyst for electric vehicle (EV) adoption. However, it cautiously notes that the discontinuation of FAME (if realized) might pose a near-term challenge.
EV MARKET GROWTH: SURGE IN ELECTRIC PASSENGER VEHICLES AND THREE-WHEELERS
The month of December witnessed a commendable uptick in EV penetration across electric passenger vehicles (EPVs), electric three-wheelers (E3Ws), and electric two-wheelers, marking all-time highs for E3Ws and nearing record levels for EPVs.
POSITIVE NORMALIZATION: EV PENETRATION AND POLICY BOOSTS
Post the decline triggered by incentive reductions on E2Ws, the penetration of EVs has steadily improved and appears to have normalized to pre-subsidy cut levels. Additionally, the Bihar government introduced a new EV policy spanning the next five years, signalling positive prospects for the EV landscape.
The surge in December signifies a promising stride in India’s E2W market, with Ola Electric’s strategic initiatives and market dominance shaping the industry’s trajectory toward electrification.
