New Delhi: A recent report reveals that electric vehicle (EV) adoption in Indias two-wheeler (2W) sector has significantly increased over the past two months, even though incentives were nearly halved in April. This shift has led to notable market changes, with Ola Electric experiencing a drop in market share and TVS Motor Co Ltd (TVSL) recording gains. According to BNP Paribas India, electric 2W penetration and volumes have recovered, now surpassing figures from FY24.Market Dynamics and ShiftsElectric two-wheeler (E2W) sales volume saw strong year-on-year growth on a low base, with penetration improving month-on-month, the report stated. TVSL gained market share for the second consecutive month, while Ola lost.In contrast, electric passenger vehicle (EPV) penetration slightly deteriorated month-on-month, with Tata Motors losing market share while MG gained. In the electric three-wheeler (E3W) space, volumes increased year-on-year but declined month-on-month in June.Policy News and Future ProspectsKumar Rakesh, an analyst in IT and auto, noted, The FAME III incentives could be announced in the Union Budget, and Delhis EV policy expiration could lead to price increases for E2Ws and E3Ws.Another report from last month indicated that electric car sales in India are likely to reach 1.3-1.5 lakh in the current fiscal year (FY25), with an improving adoption rate. After a record growth of 90 percent, reaching 90,432 units in FY24, electric car penetration is steadily increasing. This growth is driven by the governments efforts towards a more sustainable, environmentally friendly, and efficient transportation sector, according to a CareEdge Rating report.The surge in EV adoption in Indias two-wheeler sector, despite reduced incentives, highlights the markets resilience and growing consumer interest. As policies evolve and adoption rates continue to rise, the future of electric vehicles in India looks promising, paving the way for a greener and more sustainable transportation landscape.
