Electric 2-Wheeler Sales Down in H1 2020, Recovers in Sept to 72%: SMEV

The electric two-wheeler industry is showing signs of recovery in September, after the first half of the year failed to cross the 10,000 sales mark, the SMEV.

The electric two-wheeler industry is showing signs of recovery in September, after the first half of the year failed to cross even 10,000 units sales mark during the April-September period, according to the Society of Manufacturers of Electric Vehicles (SMEV).

About 7,552 high-speed electric two-wheelers were sold between April and September, according to data from SMEV. This does not include the sale of low-speed two-wheelers that do not require registration. This low number was lower by a quarter compared to last year because of the disruptions from the COVID-19 pandemic even after double-digit growth during August and September.

“One of the main reasons for stagnant sales is attributed to customers not able to buy products due to COVID-19, which led to lockdown in the country. However, the industry has been quickly able to enter the positive curve soon after the government announced the unlock process,” said Sohinder Gill, director general of SMEV.

The central government subsidises the cost of electric vehicles for buyers under the second phase of its Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II), with benefits directly linked to the battery size on these vehicles. The subsidies are targeted towards vehicles used for public transport and for personal two-wheelers and usually work out to Rs 10,000-20,000 for a two-wheeler.

However, while the sales of high-speed electric two-wheelers declined by 25.6 percent between April and September 2020 on the back of the coronavirus-induced lockdown, the month of September saw a 72 percent year-on-year increase in sales in this category, said the SMEV

At the end of September, Hero Electric accounted for 35 percent of the market share with sales of 2,629 units. Okinawa had a 24 percent share after selling 1,836 units. Ather Energy sold 941 units during this period, for a market share of 12 percent.

“The outlook for this financial year remains positive as we hope that the recent move by the central government allowing the vehicle to be sold without battery and the announcement of EV policy by Delhi government would further help the industry to move forward. Also, extending the PMP (phased manufacturing program) guidelines would allow the industry to ramp-up production and strengthen the local component market,” Gill added.