E2Ws finish FY24 with record sale despite FAME-II subsidy cut

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Electric two wheelers (E2Ws) have finished financial year 2023-24 (FY24) with record sales despite of the fact that the government had cut FAME-II subsidy  in the concerned fiscal. The sales in FY24 were up 274 per cent year-on-year (YoY) to 9.44 lakh units from 2.52 lakh units in FY23. This is the highest-ever sales figure that has ever been recorded in the country in any given fiscal of green energy two-wheelers.

The E2W sale in FY24 was driven by India’s largest EV manufacturer, Ola Electric. The Bengaluru-based electric vehicle manufacturer accounted for the largest chunk of E2W sales in the fiscal. Ola Electric finished FY24 with 35 per cent market share and sale of 3.26 lakh units.

India’s automobile majors TVS and Bajaj grabbed second and fourth spot, respectively. Riding on sale of its flagship E2W, iQube, TVS finished FY24 with sale of 1.83 lakh units taking 19 per cent share of the electric two-wheeler industry pie. While, its rival, Bajaj recorded sale of 1.07 lakh units in the concerned financial year with 11 per cent market share.

Another Bengaluru-based E2W manufacturer, Ather Energy, finished FY24 on second position as it recorded sale of 1.09 lakh units and 12 per cent market share.

There were concerns that government’s decision to trim subsidies under its flagship FAME-II incentive scheme from June 1, 2023, would put speed bumps on E2W sales. Sales fell in June after the subsidy trim, but gradually sales picked up as FY24 progressed. And, the fiscal recorded highest ever sale of clean and green energy two wheelers in the history of India.

After, the government reduced FAME-II subsidies in June  2023, and, then entirely withdrew the incentive scheme at the end of FY24, it brought in a new subsidy scheme called Electric Mobility Promotion Scheme (EMPS) 2024 effective April 1, 2024 for incentivizing E2W purchase. The government further reduced subsidies given to consumers under the new scheme.

The government used to give Rs 10,000 per kilowatt hour subsidy on E2Ws with a cap of 15 per cent of the ex-factory price. But under EMPS 2024, the government has further reduced the subsidy to Rs 5,000 kWh with a cap of Rs 10,000 kWh on each E2W.