Even as conventional (Internal Combustion Engine) two-wheeler makers are cautiously optimistic about the demand during the upcoming festival season, electric two-wheeler makers are bullish and expect a surge in volumes during the period.

Electric two-wheeler sales have seen a steady increase since July as leading companies, mostly new players, report higher levels of volumes, supported by an improving environment. With September also showing good momentum for electric two-wheeler sales, the average monthly volumes are in the range of about 15,000 units now and the number is expected to grow further.

For April-September 2021 period, the total electric two-wheeler sales are estimated at about 44,000 units. “We are going good on sales figures, and expect to perform well this month just like we have in the previous months. The market growth has been majorly fuelled by affordability, and increased attention towards infrastructure development. The customer’s perception has significantly changed, and larger players have helped in increasing awareness of EVs in the country,” said Sohinder Gill, CEO, Hero Electric.

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Apart from Hero Electric and Ather, companies such as Okinawa, PureEV and Ampere, among others have also been expanding rapidly in view of growing sales.

“We had a great start to this quarter. In July, our Indiranagar (Bengaluru) experience centre generated ₹10 crore in sales, which is 2X of what ICE showrooms do with half the size. September looks great so far, we are likely to sell the maximum we have done so far in any of the months. I am even more kicked for the upcoming festive period though. We are at a scale where the festive demand bump will be quite real,” says Tarun Mehta, Co-founder & CEO at Ather Energy.

Policy boost

Electric two-wheeler companies have seen a greater amount of excitement and encouragement from both policymakers and consumers in the last few months to be precise.

In addition to lower total cost of ownership and higher fuel prices, the entry of mainstream brands in the market and the introduction of newer, high-performance EV two-wheelers has increased the awareness among consumers and resulted in a strong volume growth. For an ICE scooter, there are options for consumers at every price point, which wasn't the case for an e-scooter.

“Now, with the industry growing, multiple options being available, solid subsidies being given by the Centre through the Fame II policy, state subsidies, banks offering great deals on EV purchases, and the density of charging infrastructure improving. All these have contributed to strong sales momentum for electric two-wheelers,” says Mehta.

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As demand has picked up, traditional players are also ramping up their EV strategies. “With new players leading the way in the electric 2W market, we are witnessing massive investment from big traditional players.

“Also, they have an edge in terms of manufacturing, supply chain and dealer network, which will help them scale up quickly once the product is ready for market,” said Rajeev Singh, Partner and Automotive Leader, Deloitte India.