E-Revolution: 134% Increase In Sale Of Electric Two-Wheelers In India; 1 Million Sales In 2022?

Sales of electric vehicles (EV) in India are expected to reach around 10 lakh units this year, mainly led by electric two-wheelers (E2Ws).

More Than 15 Years Combined

This is quite the feat considering 10 lakh is equal to sales recorded in the last 15 years.

Last year, sales of E2Ws in India more than doubled at 2,33,971 units compared to 1,00,736 units in 2020.

Society of Manufacturers of Electric Vehicles (SMEV) which reported the figures said that the last few months have been game changing for the entire EV industry.

In the last 15 years, around 1 million e2w, e-three wheelers, e-cars, and e-buses were sold.

That figure will likely be surpassed this year alone.

Policy Push

Credit should be given to positive changes in EV policy through Faster Adoption and Manufacturing of Electric and hybrid vehicles policy or FAME II.

It is the government’s flagship EV promotion scheme which provides subsidies which serves to reduce the price differential between high-speed and low-speed scooters.

The policy reflects the government’s intention to build a “cleaner and greener transportation sector, reducing reliance on expensive and dirty liquid fuel”, said SMEV Director General Sohinder Gill.

Public Acceptance

The public is also starting to favor EVs over petrol two-wheelers thanks to their affordability, lower running costs, and maintenance.

A significant percentage of customers also consider the environmental impact when making their purchase decisions.

Gill said that over the next one year, the industry may witness 5-6x the growth over the previous 12 months, if recent monthly trends are any indication.

High-Speed Vehicles And Their Popularity

E2Ws with speeds reaching over 25km/hour and requiring a full license registered an incredible 425% growth at 1,42,829 units in 2021.

The figure stood at just 27,206 units in 2020.

High-speed E2Ws enjoy incentives based on their battery capacity of Rs 15,000/kwh.

This has made entry-level high-speed eE2Ws cheaper than the slower ones.

Low-Speed Vehicles Less Favored

Sales of E2Ws with speed less than 25km/hour which do not require a licence, on the other hand, grew by just 24% last year at 91,142 units.

The figure stood at 73,529 units in 2020.

Its sales actually declined in the final quarters of 2021, says SMEV.

Its market share declined to less than 15% in the quarter of October-December 2021, as compared to over 70% it enjoyed in the years before.

The reason may be that the low-speed E2Ws are not subsidised under the FAME II policy.

Future Forecast

Gill believes that the product range in India will grow to cover all segments in the next two to three years.

Customers will have a greater variety to choose from, such as e-scooters, e-motorcycles, and e-cycles offered by large and organised players.

He expressed confidence in his prediction that In four to five years, around 30% of the two-wheeler market will be electric.

Top Players

Hero Electric stands at the top, being the number one in the high-speed E2W segment with 46,214 units sold in 2021.

It is followed by Okinawa with 29,868 units, Ather 15,836 units, Ampere 12,417 units and Pure EV with 10,946 units.