Electric two wheeler sales up 17% in India as electrification improves: Drive by aggressive strategies
In a recent report by BNP Paribas India on the electric vehicle (EV) market, Ola Electric emerged as the undisputed leader in the Electric Two-Wheeler (E2W) space, capturing a remarkable 40% market share. The report highlighted significant gains for Ola Electric, while Bajaj Auto followed suit in market share growth, and TVS Motor experienced a decline.
Ola Electric’s ascendancy was attributed to its strategic marketing initiative, aptly named ‘December to Remember.’ This campaign featured enticing discounts and a substantial price reduction, specifically slashing Rs 20,000 or 18% off its S1X+ e-scooter prices. The move proved instrumental in Ola’s surge in market share, showcasing the impact of well-executed promotional efforts in the competitive EV landscape.
While several states witnessed a decline in E2W sales volume, notable exceptions included Delhi, West Bengal, and Uttar Pradesh. Of particular interest is the impressive penetration surge in Delhi, rising from 6.9% in November to a substantial 19.8% in December. Ola Electric played a pivotal role in driving this surge, emphasizing its regional impact on the EV market.
The report underscored the positive influence of Original Equipment Manufacturers (OEMs) introducing lower-priced models and implementing aggressive discount strategies, fostering a conducive environment for EV adoption. However, a note of caution was sounded regarding the potential near-term challenges posed by the discontinuation of FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) incentives.
Beyond the E2W segment, the report highlighted encouraging trends in EV penetration across electric passenger vehicles, electric three-wheelers, and electric two-wheelers. December saw record-high penetration for Electric Three-Wheelers (E3Ws) and approached all-time highs for Electric Passenger Vehicles (EPVs). The consistent improvement in EV penetration since subsidy cuts reflected a normalization of market dynamics, showcasing the resilience and adaptability of the electric mobility sector.
The report concluded with a notable mention of the Bihar government’s unveiling of a new EV policy, spanning the next five years. This announcement adds a positive dimension to the evolving landscape of EV policies, indicating a continued commitment to sustainable and eco-friendly transportation solutions. As Ola Electric continues to lead the E2W market, such developments contribute to the overall momentum of electric mobility in India.
