Until a few years ago, owning an EV of any kind was considered strictly experimental. There was hardly any consumer who depended on EV as a primary vehicle. Now, the tables have completely turned. To get an idea of how popular EVs have become, we can take a look at the 2-wheeler segment in the country.
Federation of Automobile Dealers Association (FADA) published its report for the month of December 2021. Three of the top ten two-wheeler OEMs are electric vehicle manufacturers. Okinawa Autotech, Hero Electric, and Ampere Vehicles are the three manufacturers that have made it to the top 10 two-wheeler manufacturers for the month of December 2021.
Compared to last year’s sales, the same companies have managed to outperform themselves by a huge margin. Okinawa Autotech sold 613 units in December 2020, while the company achieved sales of 6,098 units in December 2021. Hero Electric sold 1,545 units in the month of December 2020 and 6,058 units in December 2021. Ampere Vehicles sold 872 units in December 2020 and 3,343 units in December 2021. Even Ather Energy and Pure Energy have managed to make it to the top 15 players. In the two wheeler segment.
Why are Indians moving towards electric vehicles?
Let us look at the factors influencing a buyer’s decision:
Coming straight to the main pain point, conventional fossil fuel-powered vehicles are facing rapid price hikes. This price hike is factoring in the daily expenses of the vehicle owners. The two-wheeler market is very sensitive and buyers are turning to more affordable daily runners.
Electric vehicles have been more valuable than their ICE counterparts for the most part of automobile history. In the case of electric cars, the price gap is still quite high but it is gradually narrowing down. However, the prices have become quite comparable in the case of electric scooters.
The price is influenced by various incentives provided by the government both at the national and state level. The second phase of the FAME scheme is having an impact on the overall prices of electric vehicles. Additionally, many states are offering substantial subsidies to fuel the demand for the relatively new segment. The climate change targets set by the government in COP 26 are meant to enhance these incentives.
More and more players are entering the EV segment. With this, electric charging stations are also gaining momentum. While the range concern is still going nowhere, the EV industry has finally started to stretch its legs and is rapidly expanding the charging options for buyers. Also, the driving range of most scooters has increased to the point where there is no more need to use public chargers, at least in Tier II and Tier III cities. Given that it’s all an upward trend from here on out, the charging infrastructure is likely to expand rapidly in the coming years.
have a long way to go
While the reports are promising, the top players in the automobile industry have a substantial edge over their EV counterparts. For context, Hero MotoCorp, the best seller in the market, sold 3,96,278 units in the month of December 2021 alone. It owns about 35 percent of the market share.
Despite huge sales numbers, ICE 2-Wheeler brands are witnessing a drop in sales across the board. This gives EV players room to expand further.
India’s transition to electric vehicles sooner than expected first appeared in BGR India.