Electric Two-Wheeler Sales Increases by 17% in India as Electrification Improves

Electric two-wheeler (E2W) sales volume in India increased by 17 % year-on-year in December as electrification improved after a recent pause in sales growth. In the E2W space, Ola Electric (Ola) remained the market leader by volume and gained market share, reaching 40 %. According to the BNP Paribas India EV report, Ola gained the most market share, followed by Bajaj Auto, while TVS Motor lost the most.

The report mentioned that Ola's market share improved mainly due to the company's aggressive marketing campaign, 'December to Remember'. Under this campaign, the company offered aggressive discounts to customers and reduced prices of its products," the report mentioned.

Ola slashed its S1X+ e-scooter prices by Rs 20,000 or by 18 %. Penetration improved the most in Delhi to 19.8 % from 6.9 % in November, almost entirely driven by Ola. The report further states that OEMs are launching lower-priced models and offering aggressive discounts as a positive catalyst for EV adoption. However, discontinuing FAME (if it happens) could pose a near-term headwind.