Incumbents’ share of electric two-wheeler market on the rise
TVS Motor Co. Ltd and Bajaj Auto Ltd are swiftly closing the gap on startups such as Ola Electric, though it still retains the top position. TVS Motor became India’s second-largest electric two-wheeler maker several months ago and is rapidly closing the gap with Ola Electric, while Bajaj Auto emerged as No.3 in October, displacing Ather Energy to the fourth spot.
Ola Electric’s three-month rolling average market share, which peaked at 34% in August, fell to 30% in October, while Ather Energy fell from 13% to 11%. Meanwhile, TVS Motor’s electric two-wheeler market share jumped from 14% in January to 24% in October, while Bajaj Auto’s rose from 4% to 11%, Vahan data on three-month rolling automobile registrations showed. Four companies—Ola Electric, TVS Motor, Bajaj Auto and Ather—accounted for 77% of the 74,261 e-two-wheelers sold in India in October.
At the end of June, there were five companies that made up this share, a Mint analysis at the time showed. Since then, the leaders strengthened production and distribution, and introduced new products and price points, while others, such as Greaves’s Ampere, Okinawa Autotech and Hero Electric, faced setbacks as the government clamped down on their claims of FAME-II incentives, affecting sales. E-two-wheeler sales in October were 17% up from the preceding month but 4% lower from a year earlier.
This was due to the early arrival of the festive season the year before, said Jay Kale, an analyst at Elara Capital. Similarly, The trend in the internal combustion engine two-wheeler segment showed a 16% year-on-year decline but a 10% month-on-month increase. Consequently, in October, the penetration of e-two-wheelers stood at 5.1%, a notable increase from 4.8% in September.
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