In December, electric two-wheeler (E2W) sales in India experienced a notable 17% YoY increase, signaling a positive shift in electrification. Ola Electric retained its position as the market leader with a 40% market share, achieving significant growth, while Bajaj Auto followed suit. Conversely, TVS Motor faced a decline, as outlined in the BNP Paribas India EV report.
Ola Electric’s success in gaining market share was attributed to its robust ‘December to Remember’ marketing campaign. The company implemented aggressive discounts and reduced prices, notably slashing Rs 20,000 or 18% off its SIX+ e-scooter. The report highlighted a decline in sales volume for most states, except Delhi, West Bengal, and Uttar Pradesh.
Delhi showcased the most improved penetration, soaring from 6.9% to 19.8%, largely propelled by Ola Electric’s initiatives. The industry witnessed Original Equipment Manufacturers (OEMs) launching more affordable models and offering enticing discounts, fostering a positive environment for EV adoption. However, potential discontinuation of FAME could pose a short-term challenge, as noted in the report.
December also witnessed improved EV penetration in electric passenger vehicles and electric three-wheelers, reaching all-time highs for the latter and nearing record levels for the former. The report concluded on an optimistic note, citing consistent improvement in E2W penetration since the subsidy cuts and the unveiling of a new five-year EV policy by the Bihar government.