News Update

Two-wheeler sales in India soar to over 8 lakh units in 2022-23, driven by rising demand for electric vehicles: SMEV

• ByStartupStory     |    April 10, 2023

The Society of Manufacturers of Electric Vehicles reported on Monday that two-wheeler sales in India increased by more than 2,500 percent to 8,46,976 units in 2022–23 compared to the previous fiscal year. 3,27,900 units of e-two-wheelers (E2W) were sold overall in 2021–22.

The Society of Manufacturers of Electric Vehicles (SMEV), citing data from the makers, said that in FY23, 1.2 lakh low-speed (LS) e-scooters with a top speed of less than 25 km/h were sold.

The sales figures for low speed and high speed e-scooters in 2021-22 were 75,457 and 2,52,443 units respectively. SMEV has reported that the adoption of electric two-wheelers (E2W) in FY23 fell short of the minimum target set by Niti Aayog and other research organizations by over 25%.

The industry association also stated that the non-compliance with the Phased Manufacturing Programme (PMP) guidelines under the FAME II scheme has led to the withholding of subsidies, which has affected the sales of E2Ws.

“In the electric two-wheeler segment, the industry sold 7,26,976 high-speed E2W (top speed more than 25km/hr) in FY 2023,” it added.

SMEV has stated that an additional amount of Rs. 400 crore belonging to Original Equipment Manufacturers (OEMs) in the premium segment has been held up due to accusations of under-invoicing to evade FAME regulations. This has resulted in a severe shortage of working capital, which has hampered their business operations.

“Ironically it was not the consumer demand but the sudden withholding of more than the Rs 1,200 crore subsidy already passed on by the majority of original equipment manufacturers (OEMs) to customers on the pretext of delay in localisation,” it said.

“Today 16 companies that represent more than 95 per cent of the industry are waiting for some resolution for the chaos and the fiasco of the FAME PMP are cleared to enable them to plan their businesses in the year FY24,” it said.

SMEV Director General Sohinder Gill said, “With only 5 per cent adoption in FY23 and the short-term goal of 30 per cent and the EV mission of 80 per cent adoption by 2030 looks more like a mirage.”

However, he said, “All is not lost and what perhaps can put the industry back on track is an extension of the PMP eligibility criteria by 2 years and strictly enforcing it from April 23.”

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