The electric two-wheeler market in India has experienced a significant slowdown, with total registrations falling by over 18% in November 2024. According to the latest data, electric two-wheeler registrations stood at 1.14 lakh units in November, down from 1.39 lakh units in October, signaling a notable dip in consumer demand.
The decline has particularly affected some of the top electric two-wheeler manufacturers, with Ola Electric witnessing a sharp 33% drop in month-on-month (MoM) registrations. In November, the company registered just 27,746 units, down from 41,500 in October. This slump comes despite the company’s earlier efforts to ramp up production and expand its market presence across the country.
Rival TVS Motor, however, is slowly gaining ground in the electric two-wheeler segment. With 26,036 units registered in November, TVS Motor came close to matching Ola Electric’s numbers, signaling a growing competitive challenge for the market leader.
Bajaj Auto, another significant player in the electric two-wheeler market, also saw a decline, though at a more modest rate. The company’s registrations dropped by 12%, with 24,978 units registered last month, compared to 28,320 units in October.
Meanwhile, Ather Energy, which is preparing for its upcoming Initial Public Offering (IPO), experienced a concerning over 24% drop in its registrations, with 12,217 units sold in November compared to 16,130 units the previous month. This decline could potentially affect the company’s valuation as it moves closer to its IPO debut.
Industry experts attribute this slump to a combination of factors, including the seasonal nature of electric two-wheeler demand, rising competition, and ongoing economic uncertainty. The festive season, which typically sees a surge in vehicle sales, may have failed to boost sales this year as expected. Additionally, several customers are waiting for new launches or government policy updates, leading to a delayed purchase cycle.
Despite the setbacks in November, the electric two-wheeler market is still seen as a promising sector for the future. The government’s push for EV adoption through subsidies, tax incentives, and green energy initiatives continues to offer long-term growth prospects. However, manufacturers will need to adapt to the shifting market dynamics and intensifying competition to stay ahead in this rapidly evolving segment.
As the year draws to a close, it remains to be seen if the electric two-wheeler market can rebound in December or if these downward trends will persist into the new year.
