Electric two-wheeler sales bounce back in Aug

Tribune News Service

Vijay C Roy

Chandigarh, September 7

After suffering initial setback with the reduction in Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) subsidy, sales of electric two-wheelers have bounced back.

By selling nearly 62,449 units in August, the industry achieved a growth of over 14% as compared to 54,505 units sold in July.

Initially, the electric two-wheeler sales hit a speed bump after the FAME-II subsidy was slashed from 40% to 15% with effect from June 1, resulting in increase in acquisition cost.

The changes in the scheme resulted in sudden disruption, as electric two-wheeler sales witnessed a significant decline in June, dropping more than 56% to 46,025 units as compared to 1,05,415 units in May. In fact, June’s sales dipped below the levels seen in any of the past 11 months of FY 2022.

“While the reduction in the FAME-II subsidy has initially caused a decline in electric two-wheeler sales, we must remember this setback is temporary. Data indicates a downward impact on sales as the price of electric two-wheelers surges by 20 to 25%. However, this is a momentary adjustment period. The electric vehicle market has consistently demonstrated resilience and adaptability. As we navigate through this transitional phase, we can expect innovation and competition to drive down prices once again,” said Atul Gupta, co-founder and director of e-Sprinto.

According to the industry, growing environmental consciousness and the government’s continued support for sustainable mobility will fuel the long-term growth of electric vehicles.

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