In September, sales of electric two-wheelers reached a record high thanks to new product introductions, expanded production capacity, longer vehicle range, and holiday demand.
Up to 15% of the nationwide scooters sold in retail last month were electric. Electric cars make up 5% of the two-wheeler market if the other sectors are considered.
Amitabh Kant, a former CEO of NITI Aayog, predicts that electric vehicles will dominate the two-wheeler market in the following four years. According to him, the government is expanding tax breaks and subsidies to hasten this environmental transformation. 51,586 electric two-wheelers were registered in September, according to data from the government’s Vahan portal, making up 5.05% of the two-wheelers sold during the month.
Since May, retail sales of electric two-wheelers have steadily increased monthly.
According to Vahan data, total registrations through the first nine months of 2022 have reached 388,000 units, which is already 2.7 times more than the total for all of 2021. Higher gas prices and more EV availability from established two-wheeler manufacturers encourage consumer adoption.
In states with higher per-capita GDP, electric two-wheeler adoption has been greater. 69% of high-speed electric two-wheeler sales last month were in Maharashtra, Karnataka, Tamil Nadu, Rajasthan, Gujarat, and Delhi.
State-level subsidies, which average around 5,000 per Kwh, play a significant role in promoting the adoption of electric vehicles. This is most likely the cause of Delhi’s 8% share in sales of electric two-wheelers.
According to Manish Raj Singhania, president of the Federation of Automotive Dealers Association of India, the EV market has generated a lot of excitement across industries, bringing in a completely new group of consumers.
“The segment is growing at a steady pace, and we expect it to gain a larger industry share rapidly over time, especially in the three- and two-wheeler categories,” he said.