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regular-article-logo Friday, 03 May 2024

Electric two-wheeler sales plunges 57 per cent in June from previous month after reduction in subsidy

Subsidy under Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme was reduced to Rs 10,000kWh from Rs 15,000kwh

Anasuya Basu Calcutta Published 24.07.23, 05:04 AM
Representational image

Representational image

Electric two-wheeler sales plunged 57 per centin June from the previous month after the reduction in subsidy under the FAME II scheme.

The subsidy under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme was reduced to Rs 10,000kWh from Rs 15,000kwh.

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The maximum subsidy has been capped at 15 per cent of the ex-factory price of the vehicle, down from 40 per cent.

This had an immediate effect on the sales of the electric two-wheelers in June.

In fact, the June figures were the lowest in 12 months (July 2022 to June 2023) with only 45,798 units sold compared with 1,05,340 units in May.

It is pertinent to note that the first half of sales in 2023 saw a 67 per cent increase over H1 (first-half) 2022.

In H1 2023, sales of e2-wheelers were at 4,34,978 units compared with 2,60,316 units in the same period last year.

In June 2022, a total of 44,381 e2-wheelers were sold. After mostly an upward trend of sales over the last 12 months, sales drastically dropped in June, post-subsidy reduction and are now at the same figure as a year ago.

Leading the pack in e-2wheelers is Ola Electric with 17,572 unit sales in June, a decrease of 39 per cent month-on-month.

TVS Motor witnessed a 62 per cent decrease with 7,807 unit sales in June. Ather Energy reported a 71 per cent decrease with sales of 4,543 units in June.

Merc, BMW, Audi enjoy H1 ride

The German premium players in the auto industry are poised equidistant from each other: all three posting healthy growth and best-ever sales in the first half of 2023.

While Mercedes leads the pack with 8,528 unit sales in the first half of the year BMW comes second with 5,867 cars (BMW and Mini) and Audi third with 3,474 unit sales.

Mercedes posted a 13 per cent growth over H1, 2022 (7,573 units), BMW 5 per cent and Audi a 97 per cent growth.

While posting the least growth, BMW India aims to close the year with double-digit growth. Releasingits sales figures, the company announced that it hadposted its best-ever month, quarter and half-year sales in 2023.

In the first six months, 5,867 cars (BMW and Mini) and 4,667 motorcycles (BMW Motorrad) have been sold. BMW sold 5,476 units and Mini 391 units.

BMW Mini posted a 3 per cent growth and BMW Motorrad, 50 per cent growth.

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