Sales of electric two-wheelers could fall 20% short of the 10 lakh unit target for FY23
- ByStartupStory | January 2, 2023
According to industry group SMEV, the government’s withholding of a subsidy worth around Rs 1,100 crore might cause electric two-wheeler sales to fall 20% short of the objective of 10 lakh units in the fiscal 2022–23 period.
According to the Society Of Manufacturers Of Electric Vehicles (SMEV), sales of electric two-wheelers reached almost 6 lakh units in 2022, with three major manufacturers—Hero Electric, Ola, and Okinawa—crossing the 1 lakh annual sales threshold for the first time. These original equipment manufacturers (OEMs) emerged as the leading participants in the E2W business, commanding more than 50% of the overall market share.
With sales of about 6 lakh units, the electric two-wheeler industry’s performance in 2022 appears promising but SMEV said, “the volumes are not keeping up with the projections made by Niti Aayog and many other research agencies.”
It also added, “December has raised a red flag for the industry as it has witnessed a 28 per cent dip in sales, reaching a total of only 59,554 units compared to 76,162 units in November, 22, as per the Vahan portal.”
Sales during the nine months of the current FY23 that ended in December, according to SMEV Director General Sohinder Gill, were about 5 lakh units, and “there could be more than 20% shortfall in the forecasts given by NITI Aayog of 1 million units for the complete FY23.”
Gill said, “Sales during the nine months of the current FY23 that ended in December, according to SMEV Director General Sohinder Gill, were about 5 lakh units, and “there could be more than 20% shortfall in the forecasts given by NITI Aayog of 1 million units for the complete FY23.”
“More worrying is that this slowing down, unless resolved quickly, may adversely affect the FY24 volumes that are projected to be 2 million plus units,” he added.
Last month, Union Heavy Industries Minister Mahendra Nath Pandey announced that the ministry has received complaints about several electric car manufacturers misappropriating subsidies under the FAME India Phase II plan.
The majority of the complaints the government received concerned breaking the rules of the Phased Manufacturing Programme (PMP), and these had been sent to the testing agencies for re-verification.
Following this, he had stated that two OEMs’ models had been removed from the FAME scheme and that processing of their pending claims had been halted until they provided sufficient documentation to demonstrate their adherence to PMP timeframes.
Benling India Energy and Technology, Okaya EV, Jitendra New EV Tech, Greaves Electric Mobility (previously Ampere Vehicles), Revolt Intellicorp, Kinetic Green Energy & Power Solutions, Avon Cycles, Lohia Auto Industries, Thukral Electric Bikes, and Victory Electric Vehicles International are among the other OEMs against which complaints have been made.
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