With no FAME in April, electric two-wheeler makers report 53% decline in sales

Market leader Ola Electric reported a decline of 36.30% last month [View in browser]( [See all newsletters]( 11 May 2024 With no FAME in April, electric two-wheeler makers report 53% decline in sales The retail sales of electric two-wheelers (E2W) fell by about 53 per cent to 65,111 units in April against 1,39,531 in March. Industry insiders say that sales picked up just before the government’s subsidy scheme got over on March 31 and slumped after the scheme came to an end. The government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme commenced on April 1, 2019 for a period of three years, which was further extended for a period of two years up to March 31 this year, with a total outlay of ₹10,000 crore. Companies were offering discounts to customers during the scheme period. On year-on-year (y-o-y) basis, too, the total sales of E2W declined by around three per cent as compared with 66,873 units in April 2023, the latest data shared by Federation of Automobile Dealers Associations (FADA) said on Friday. “The drop in EV sales across various segments in April is primarily due to the expiration of the FAME-II subsidy, which led to increased EV prices. This increase has made EVs less affordable, contributing to the significant decline in retail figures on a MoM basis,” Manish Raj Singhania, President, FADA told businessline. He said that the new electric mobility promotion scheme, when compared to the FAME-II subsidy, is less favourable across the board for electric two-wheelers, three-wheelers, and passenger vehicles. “This situation has placed the industry in a challenging position, impacting the affordability and accessibility of EVs for consumers. FADA hence urges the government to revisit the support framework to ensure that India’s transition to clean mobility remains on course, benefiting both consumers and the environment,” Singhania added. Market leader Ola Electric reported a decline of 36.30 per cent on month-on-month (m-o-m) basis to 33,963 units during the month as compared with 53,320 units in March. However, on y-o-y basis, its sales grew 54 per cent against 22,068 units in April 2023. Similarly, TVS Motor Company reported a MoM decline of 71 per cent in its sales to 7,675 units in April as against 26,501 units in March. ‘Chetak’ maker Bajaj Auto reported a MoM decline of 58 per cent in its sales to 7,529 units in April against 18,008 in March but on YoY basis it grew by 84 per cent as compared to 4,093 units in April 2023. Ather Energy registered sales of 4,062 units last month, which is a MoM decline of 76.43 per cent as compared with 17,232 units in March. Other manufacturers including Greaves Electric Mobility and Hero MotoCorp also reported a MoM decline in their sales during the month. In the electric passenger vehicle segment too, the sales declined by 22 per cent MoM to 7,415 units in April as compared with 9,503 units in March. However, on YoY basis it grew by 23 per cent against 6,039 units in April last year. Tata Motors continues to lead the market with 4,956 units though lesser as compared to 7,005 units in March. ‘ZS EV’ maker MG Motor India sold 1,203 units during the month as against 1,131 units in March. In the electric three-wheeler segment, there was a MoM decline of 31 per cent to 42,030 units against 60,773 units and electric commercial vehicles too declined by 76.27 per cent MoM to only 510 units as compared to 2,149 units in March this year. End You Might Also Like [Tata Motors Q4 net profit more than triples to ₹17,407 crore]( [Companies]( [Tata Motors Q4 net profit more than triples to ₹17,407 crore]( [Supreme Court grants interim bail to Arvind Kejriwal till June 1]( [National]( [Supreme Court grants interim bail to Arvind Kejriwal till June 1]( [CPSEs encouraged to join NPS as Finance Ministry steps up efforts]( [Money & Banking]( [CPSEs encouraged to join NPS as Finance Ministry steps up efforts]( [Strong manufacturing boosts factory output by 5.8% in FY24]( [Economy]( [Strong manufacturing boosts factory output by 5.8% in FY24]( Stay informed Subscribe to businessline to stay up-to-date with in-depth business news from India [arrow]( Copyright @ 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please try [here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails go [here](