Ather, Ola, TVS, and others are positive on growth as sales pick up in July on the basis of an increase in charging stations and more cheap models.
Within the next two years, one out of every five two-wheelers sold in the Indian market will be electric, owing to the introduction of more affordable models by two-wheeler manufacturers and an increase in the number of public charging stations across the country, prompting companies ranging from Ola Electric to Ather Energy and TVS Motor Company to increase production capacity to meet potential demand.
Electric vehicles accounted for 4.5% of all two-wheelers sold in the previous fiscal year, when 15.86 million motorcycles, scooters, and mopeds were sold in the country. According to Tarun Mehta, CEO of Ather Energy, sales of electric two-wheelers began to rise last month after declining sequentially in June 2023, when manufacturers raised prices due to a reduction in incentives under FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles).
According to figures from the Federation of Automobile Dealers Association (FADA), 54,292 electric two-wheelers were sold in July, up from 45,806 the previous month. “The market has already begun to improve and recovered by 20% in July.” “On a run-rate basis, it (electric powertrain penetration in two-wheeler sales) should cross 10% early next year and 20% by early 2025, led by scooters,” Mehta said, adding that motorcycles will take longer to shift to electric.
In fact, the percentage of electric scooters is predicted to rise to almost 30% by the conclusion of the current fiscal year. To fulfill customer demand, Ather, which this week released its most affordable scooter, the 450S, with pricing beginning at 110,054 in Ahmedabad (ex-showroom price e inclusive of FAME II & state subsidy), will prepare for more capacity next year.
Mehta declined to identify the company’s sales objective for the year, but he is “bullish” on market growth expectations. “We will look at new capacity next year,” Mehta said, adding that “while Tier-I demand has been what we expected, Tier-II and Tier-III demand has been significantly higher.” The average tier-II sale per store exceeds that of numerous tier-I businesses.”
Meanwhile, Ola Electric, the market leader in electric two-wheelers, is increasing capacity from 0.5 million to 2 million units per year by the end of the current calendar year. Ankush Aggarwal is the chief operating officer. Ola Electric said it got over 50,000 orders for the S1 Air within five days of its introduction, leading it to accelerate growth plans.
“We are seeing very strong demand in the market,” added Aggarwal. Demand is coming in from all around the country.
ATHER CAPACITY
In Tamil Nadu, Ather Energy now has two production plants with a total installed capacity of 420,000 units.
