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Electric two-wheeler’s sale decreases due to subsidy removal

New Delhi: EV Sales Down: There is a push across the country to shift to electric vehicles. The government is also giving subsidy for this, but 14 E2W manufacturers ie companies making electric two-wheelers are under the scrutiny of the government for some irregularities related to subsidy. Meanwhile, subsidy has been banned and in such […]

Electric two-wheeler
Shriti Aniraj | May 03, 2023 01:29 PM
New Delhi: EV Sales Down: There is a push across the country to shift to electric vehicles. The government is also giving subsidy for this, but 14 E2W manufacturers ie companies making electric two-wheelers are under the scrutiny of the government for some irregularities related to subsidy. Meanwhile, subsidy has been banned and in such a situation, the sale of electric two-wheelers has registered a decline due to the removal of subsidy. After clocking an all-time high sales mark of 85,000 units+ during March 2023, the domestic electric vehicle (EV) industry is set to witness a decline of nearly 23 per cent in total two-wheeler sales to 66,468 units in April 2023, according to data available on Vahan. sold to Electric two-wheelers (E2Ws) are witnessing a monthly decline amid the FAME-II subsidy rollback by the government. “After reaching a level of 86,000 units in March 2023, retail volumes of electric two-wheelers are set to decline to 66,000 units in April 2023,” said Rohan Kanwar Gupta, Vice President and Sector Head, ICRA Ltd.

Allegations

Apart from the 14 E2W manufacturers who are reportedly under the government's scanner for claiming FAME-II subsidy in violation of minimum localization norms, they include Ola Electric, Ather Energy, TVS Motor, and Hero MotoCorp, among others. They are also facing allegations of keeping the prices of their vehicles low by billing integral parts such as chargers and proprietary software separately from the vehicle. However, all the above companies have denied the allegations leveled against them.

Ola's sale

Despite the drop in registrations of electric vehicles, Ola Electric managed to outperform the market with 21,882 registrations in April. This is also the biggest number of this year. The Bhavish Aggarwal-led EV start-up saw a growth of just 2 per cent in vehicle registrations from 21,389 units in March.

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