The FAME 2 subsidy on electric vehicles, was recently slashed by the government. This has led to a steep increase in the prices of electric two-wheelers.
The registration of e-scooters has dropped to the lowest in 16 months in June 2023 as reported by Vahan data.
The Vahan vehicle registration portal depicts 35,461 units sold till June 27th. The Electric two-wheeler sales dropped from 3.391 units per day to 1,363
units per day in May.
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Overall in June 2023, the sales of electric two-wheelers dropped month-by-month to 61 percent. The sales volume is expected to be around 40,000 to 40,500 units. However, the electric vehicle manufacturers are optimistic.
Sohinder Gill, CEO of Hero Electric said “We are headed for a 60 percent achievement of the 23 lakh unit targets set by Niti Aayog due to the subsidy blockage further getting accentuated due to tapered subsidy.”
Gill also mentioned that government needs to strategically plan out the objectives linked with electric vehicles.
Ather Energy witnessed a drop of 35 – 40 Percent in sales compared to sales in May. Ravneet Phokela, Chief Business Officer expects sales to improve next month.
Vinkesh Gulati, the former President of FADA said the electric two-wheeler industry in India is going through turmoil due to change in regulations. “We expect a decrease of 30 percent in the registration in June, which is expected to continue to be the same till the festive period,” Gulati said.
He also suggested “OEMs will have to have to take a hard decision in absorbing the major part of subsidy reduction to handle the de-growth.”
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