June 2023 Sales Figures

June's retail sales figures for electric two-wheelers showcase a 56.58% month-on-month decline, following May 2023's record-breaking sales of 105,338 units. However, when compared to June 2022, the sales are up by 3%. The shift in market dynamics due to the subsidy reduction needs to be considered while analyzing the month-on-month decline. Despite the dip, June 2023 sales align with June 2022 levels, marking a phase of consolidation for the market.

OEM Performance in June

The impact of the reduced subsidy is evident in the sales figures of the top electric two-wheeler OEMs. Ola Electric, the market leader with a 38% share, witnessed a decline of 39% month-on-month, selling 17,552 units. TVS Motor Co, holding the second position, reported sales of 7,791 iQube e-scooters, a 62% decrease from May 2023. Ather Energy and Bajaj Auto also experienced declines of 49% and 54% respectively. These numbers reflect the overall market challenges resulting from the subsidy reduction.

Maturing of the Indian E-Two-Wheeler Market

While the decline in sales is a reality check for OEMs, it also signifies the maturing of the e-two-wheeler market in India. The fact that 45,734 consumers opted for higher-priced electric two-wheelers, despite the reduced subsidy, highlights their willingness to invest in eco-friendly transportation options. The growing understanding of the long-term cost savings and environmental benefits of EVs has contributed to this trend.

Overall EV Industry Performance

Although electric two-wheeler sales experienced a decline, the overall EV industry in India recorded impressive figures. In June, total EV sales across all vehicle segments reached 101,832 units, marking the ninth consecutive month with sales surpassing the 100,000-unit mark. This demonstrates the sustained demand for EVs in the Indian market.

Future Prospects

As OEMs continue to introduce new and improved EV models with enhanced features and longer range capabilities, consumers are presented with a wider range of options. While the current sales figures indicate a temporary slowdown, the EV industry's value proposition in terms of sustainable mobility remains strong. Prospects are expected to improve in the coming months, particularly with the onset of the festive season and the availability of more affordable EVs.

Conclusion

The Indian electric two-wheeler market has experienced a temporary setback in sales due to the subsidy reduction. However, the market's resilience and the willingness of consumers to invest in eco-friendly transportation options underscore the maturing nature of the industry. With sustained demand across various EV segments and ongoing advancements in EV technology, the future of the Indian EV market holds promise. As the market evolves, stay tuned for further updates on this exciting journey towards a greener and more sustainable future.