Electric 2-wheelers pick up, but yet to regain FY23 speed

After June's subsidy cuts and price hikes, registrations rose in July; cos expect EV sales to grow

- Alisha Sachdev

High-speed electric two-wheeler registrations in India rose 17% YoY in July to 54,232 units, but were still short of the monthly sales average for the financial year New Delhi: High-speed electric two-wheeler registrations rose 17% over a year ago in July, to 54,232 units, or up 19% from the previous month.

In June, e-two-wheeler sales took a hit following the government’s decision to significantly slash subsidies on electric vehicles (EVs) under FAME-II scheme. As a result, original equipment manufacturers (OEMs) were compelled to raise vehicle prices.

Despite the sales growth, registrations in July were short of the monthly sales average so far this financial year at 68,000 units. Moreover, it also trails the FY23 average monthly sales of 60,500 units. Electric vehicles accounted for 4.4% of two-wheeler sales at the end of July, compared to 3.5% in the month of June. “Recovery in electric two-wheeler sales, despite price increases after June, is impressive. With the expected lower-priced product launches in this segment, we expect sales to recover further," Jay Kale, senior vice president, Elara Capital, said.