Sans FAME, e2W sales dip 53% in April; 3-wheelers, PVs too hit
LESS AFFORDABLE. With no sop, EV prices surged; FADA seeks review of support regime
Sale of electric two-wheelers (e2W) fell a steep 53 per cent to 65,111 units in April against 1,39,531 in March.
According to industry insiders,sales had surged just before the government’s subsidy scheme ended on March 31 and slumped after the sop regime ended.
The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme commenced on April 1, 2019, for three years, and then extended for two years up to March 31, 2024, with a total outlay of ₹10,000 crore. Companies oered discounts through the scheme period.
Year-on-year, too, e2W sales declined by around three per cent compared with 66,873 units in April 2023, according to the latest data put out by the Federation of Automobile Dealers Associations (FADA).
EV PRICES UP
“The drop in EV sales across segments in April is primarily due to the expiration of the FAME-II subsidy, which led to increased EV prices. This increase has made EVs less affordable, contributing to the significant decline in retail figures on an month-on-month basis,” FADA President Manish Raj Singhania told businessline.
He said that the new electric mobility promotion scheme is less favourable for electric two-wheelers, three-wheelers, and passenger vehicles when compared to the FAME-II subsidy. “This situation has placed the industry in a challenging position, impacting the aordability and accessibility of EVs. FADA hence urges the government to revisit the support framework to ensure that India’s
transition to clean mobility remains on course, benefiting both consumers and the environment,” Singhania said.
ALL-ROUND DECLINE
Market leader Ola Electric reported a decline of over 36 per cent in April sales at 33,963 units compared with 53,320 units in March. However, its sales rose 54 per cent against 22,068 units in April 2023.
Similarly, TVS Motor Company reported a 71 per cent drop in April sales to 7,675 units compared with 26,501 units in March. For Bajaj Auto, April sales declined 58 per cent to 7,529 units against 18,008 in
March but were up 84 per cent compared to 4,093 units in April 2023.
Ather Energy’s sales of 4,062 units in April were down over 76 per cent compared with 17,232 units in March.
Other manufacturers including Greaves Electric Mobility and Hero MotoCorp also reported a decline in April sales over March.
ELECTRIC PVS TOO HIT
Electric passenger vehicle sales, too, declined 22 per cent in April to 7,415 units compared with 9,503 units in March. However, the sales were up 23 per cent compared with 6,039 units in April last year. Tata Motors continued to lead selling 4,956 units in April though less than the 7,005 units it sold in March. ‘ZS EV’ maker MG Motor India sold 1,203 units during the month as against 1,131 units in March.
W3WS/CVS IN SAME BOAT
In the electric three-wheeler segment, the decline in April was 31 per cent at 42,030 units against 60,773 units in March. Electric commercial vehicles sales dropped 76.27 per cent to 510 units in April compared to 2,149 units in March.