TVS Motor Co. Ltd. is slowly catching up to Ola Electric Technologies Pvt. Ltd. in terms of retail market share for electric two-wheelers (e-2W). The latter now holds the top spot, based on data gathered by Vahan Vehicle Registration, featuring an overall market share of 24.8% in March, following TVS’ 19.5%.
For the second consecutive time, Ola’s market share has shrunk. Ampere Vehicles recorded the greatest volumes share growth in March, while Ola suffered the greatest loss, says Kumar Rakesh, the analyst at BNP Paribas Securities India. In a report on April 10, Rakesh stated that “this is probably the reason of Ola’s price reduction.” Ola cut the price for its S1 Pro electric scooter by INR 5,000 at the end of FY23. But this is only valid till April 16.
On the other hand, TVS’s market share climbed during March for the sixth month in a row. Its iQube electric scooter is becoming more and more well-liked. iQube increased its share of TVS’ overall two-wheeler wholesale volume from 3.5% to 5% in the March quarter (Q4FY23).
“As buyers of electric vehicles search for higher quality and dependability, this is a reflection of customer trust in the established brands. If the current momentum continues, TVS may eventually surpass Ola in terms of market share, according to Varun Baxi, an analyst at Antique Stock Broking.
The overall market portion of electric two-wheelers as a whole reached its highest point since FY23 in March, hovering around 6%. This implies a fruitful beginning to FY24.
E-2W penetration increased by around 260 basis points to 4.5% in FY23 from the prior year. There is certainly room for improvement as companies increase the variety of their present products and roll out new ones.
According to the BNP Paribas analysis, “We view Ola S1 Air delivery, which will begin in July, and Honda introducing two electric two-wheeler models during FY24 as the subsequent favourable catalysts for e-2W sales and mix.”
Sales could drop as a result of the growing cost of living if government subsidies stop. Consequently, it’s critical to pay heed to the way the e-2W sector evolves going forward.
Two further public incumbents, Bajaj Auto Ltd. and Hero MotoCorp Ltd., do not yet hold a significant market share in e-2Ws. A rise in traction would be a crucial trigger for shareholders in the equity of these two companies. The rising presence of TVS in the e-2W sector has aided investor sentiment in the instance of TVS, among other things. The share price of TVS is inching closer to its INR 1176.90 52-week high from October.
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