Two-Wheeler EV Registrations Inch Up In February, Ola Electric, TVS, Ather Top The Charts

Amid the ongoing issues surrounding the FAME-II scheme, the total number of two-wheeler EV registrations slightly increased in February, with Ola Electric, TVS Motors, and Ather Energy leading the race.

The registrations in the two-wheeler EV category inched up 1.6% month-on-month (MoM) to 65,623 units last month, according to the data on Vahan (as of March 1, 2023). The rise in the number of two-wheeler EVs registered is about 15% less than the highest monthly registrations of 77,094 units in October last year.

Among the 97 electric two-wheeler companies that are registered on Vahan, Ola Electric, TVS Motor, and Ather Energy currently account for almost 50% of the total vehicle registrations in this category.

It is pertinent to note that though the overall number has increased MoM, the case is quite the opposite for most original equipment manufacturers (OEMs).

Here’s a look at the vehicle registration numbers of some of the top OEMs:

After witnessing continuous growth in vehicle registrations over the last five months, Ola Electric’s registration numbers dropped to 17,616 units in February, down 3.8% MoM from 18,313 escooters registered in January.

Despite hoards of customer complaints on social media platforms and several safety issues flagged by its customers, the demand for Ola Electric’s escooters has been northbound since September last year, after the startup launched a more affordable two-wheeler model and started opening experience centres across the country.

Betting on the growing numbers, the Bhavish Aggarwal-led eclectic mobility startup launched two new and more affordable variants of its escooters models – Ola S1 and Ola S1 Air – earlier last month, while more product launches are in its pipeline.

Currently, Ola Electric continues to top the chart in terms of two-wheeler EV registrations.

Meanwhile, Okinawa Autotech, which had positioned itself as one of the top five escooter OEMs last year, saw a 12.9% MoM decline in its vehicle registrations to 3,840 units in February. 

In October 2022, Okinawa’s vehicle registrations stood at 14,944 units, second only after Ola Electric.

The EV company is also one of the first few OEMs to have stopped receiving subsidies under the FAME-II scheme, following the allegations that it flouted the minimum localisation norms required to receive the subsidy.

Besides, the Ministry of Heavy Industries (MHI) also halted the FAME-II subsidies for Hero Electric last year, impacting the demand for its escooters in the last few months. 

Hero Electric’s EV registration dropped 8.5% in February to 5,855 units from 6,399 units in January. In August last year, the OEM’s vehicle registration numbers crossed the 10K mark.

The trouble is quite the same for the other top OEMs in the category, including Pure EV and Bajaj Auto, among others. 

However, despite the slump for most electric two-wheeler OEMs, TVS Motor and Ather Energy have been able to keep their northbound journey steady.

TVS Motor’s escooter registration grew over 20% MoM to 12,568 units in February, which helped the company retain its second position in the market.

Electric mobility startup Ather Energy’s numbers grew to 9,959 units in February from 9,224 units in January.

Ola Electric, Ather Energy, and TVS Motor together witnessed escooter registrations of over 31K units last month.

Meanwhile, RattanIndia’s ebike manufacturer Revolt and Greaves Cotton’s Ampere made some improvements in their vehicle sales in February. 

While Revolt’s vehicle registration grew to 79 units from just 14 units in January, Ampere’s vehicle registration rose over 33% MoM to 5,835 units last month.

It must be noted that both the OEMs were undergoing investigations for flouting the subsidy norms under FAME-II and have seen a sharp decline in their vehicle sales over the last few months.

Experts and various industry bodies have already warned against the negative impact of the government’s step to stop the subsidy in the sunrise sector. While investigations are still on, the MHI is trying to streamline the process.

As per a recent report, the ministry has hired public sector non-banking finance company (NBFC) IFCI Ltd and global consultancy firm EY to manage data and conduct audits to improve the FAME-II subsidy process.

Last month, the current top three sellers of electric two-wheelers also came under the government scanner. There are allegations against Ola Electric, Ather Energy, and TVS Motor that they have artificially kept the prices of their vehicles low to claim subsidies under the FAME-II scheme.

FAME-II has a total outlay of 10,000 Cr, and the government only spent INR 2,464.27 Cr until December 2022.

EV registrations, including all categories, rose to 1,05,976 units in February from 1,01,032 in January.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.