Medilytix Bureau:
Driven by increasing consumer interest, government subsidies and new product launches, the share of electric vehicles (EV) in the two-wheeler industry has been steadily increasing. In fact, in March, the share of EVs among two-wheelers rose to 4.3%, according to Vahan registrations. Note that data from Vahan registrations covers 33 states of 37. The share of electric two-wheeler (e-2W) in states leading the transition–Delhi and Karnataka–was 8-12% in March, according to analysts at Jefferies India Pvt. Ltd in a report on 7 April.
“Registration data for the state of Karnataka shows that EV adoption is not limited to tier-1 cities but spreading far wider,” said the Jefferies report. They noted that so far in calendar year 2022, penetration in smaller cities such as Mandya and Hubli stood at 15% and 10%, respectively, while adoption in the capital city of Bengaluru, including key suburbs, was at 12%.
The e-2W segment has seen an increased number of new entrants which currently enjoy a higher market share vis-a-vis listed incumbents. For perspective, “Ola Electric registrations have ramped up from 1,100 in Jan to 3,900 in February and further to 9,100 in March,” added the Jefferies report. Even so, with products from these new companies catching fire, concerns on vehicle safety arise which could weigh on demand and might impede the sharp acceleration in penetration of e-2Ws.