The Federation of Automobile Dealers Association (FADA) published registration data for new automobiles, and electric two-wheeler sales in February totalled 65,700 units.
Two-Wheeler EV Discounts
Manufacturers of electric two-wheelers like Ola and Ather Energy have been obliged to provide discounts to entice customers despite experiencing increased input cost issues as a result of decreased demand and no volume growth for three consecutive months. Not only has the rate of new launches reduced, which has contributed to waning consumer interest, but models that just recently hit the market are also being promoted with cash discounts.
The Federation of Automobile Dealers Association (FADA) said that 65,700 electric two-wheeler units were sold in February, which was in keeping with the pattern of December and January, which saw sales of about 64,300 units.
The price of Ola Electric’s S1 Pro, the nation’s most expensive electric two-wheeler, has been reduced by Rs 16,000 to Rs 127,999. Some of the additional promotions the Bengaluru-based firm is conducting to attract customers include no processing costs, no down payment on loans, and a drastically discounted cost of extended warranty. The third-largest producer of electric two-wheelers in the nation, Hero MotoCorp-backed Ather Energy, is providing consumer perks of $17,000 on their scooters as well as “no-cost EMI loans” for up to 12 months.
Okinawa Autotech had a considerable increase in product pricing after the government withdrew its subsidy entitlements at the beginning of the year. This caused a big decline in volume and an increase in discounts. The failing business was giving away up to Rs 8,750 off its whole line. “We are giving incentives just on the existing inventory, there will be no discount for new stock,” stated an Okinawa dealer in Mumbai.
Discounts As a Result of Decline in Sales
Dealers of the recently introduced Primus, which has yet to even arrive showrooms, are providing a 5,000 rebate and an extended warranty. Ampere is supported by Greaves Cotton. Budget electric two-wheeler manufacturer Jitendra EV Tech is giving its vehicles a ‘6,000 discount. The termination of the government subsidy has an impact on Ampere and Jitendra equally. Only a small number of clients can be attracted by the electric two-wheeler category priced over 100,000. The premium two-wheeler market in India is not particularly large overall, as evidenced by sales figures.
Customers are also heavily considering the expense of battery replacement, according to a supplier of parts to EV manufacturers who was instructed to reduce supply in light of the decline in demand. An EV battery pack manufacturer stated, “We are scarcely receiving any new orders for batteries; we have significantly reduced our business in the previous four months.
Sales Not as per Forecasts
The same companies’ production forecasts for the following months are probably going to be wrong because of the drop in demand. TVS Motor Corporation, the nation’s second-largest manufacturer of electric two-wheelers, intended to reach 25,000 units a month by the end of March, but it only managed to sell less than half that amount in February. Likewise, Ather Energy had stated that it intended to raise capacity to 20,000 units by March, but it only sold roughly 9,000 units in that month.
Ola Electric managed to sell 17,700 units in February, which equates to an annualised total of 212,000 units, despite its aspirations to reach a production run rate of one million units by November this year. It is known that the sector is already putting plans in place to operate without subsidies. Recent news sources indicated that the government considers not extending the subsidy scheme under the Faster Adoption and Manufacture of Electric and Hybrid Vehicles initiative (FAME).
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