Significant increase in sales of e-two wheelers in the current financial year despite obstacles

Mumbai: Despite the hurdles, the current financial year has seen an increase in sales of electric two-wheelers in the country. Looking at the vehicle sales figures till February of the current financial year, it seems that the sale of electric two wheelers has been 637128 units till February which was 239180 units in the last full financial year.

The sales figure in FY 2020 was 24845.

The increase in sales has been witnessed despite allegations of misuse of the Fatu scheme by electric vehicle manufacturers and subsequent withholding of subsidy amount due to them. The government has withheld a subsidy of approximately Rs 1100 crore.

Thus, the vehicle manufacturers are expecting to witness a strong market share in the next few years due to the strong increase in sales.

In addition to the new model launch in the coming year, two wheeler manufacturers can see a lot of competition, said an expert in the two wheeler sector.

The reason behind the increase in sales of electric two-wheelers compared to other vehicles in the domestic market is the reduction in purchase costs.

45 to 50 percent of the overall cost of electric two-wheelers is the battery, which is coming down significantly. He also added that prices of other components are likely to come down as volumes increase.

Government's Production Linked Incentive Scheme is also a step in this direction. Charging points, servicing and easy finance will help achieve the government's target for electric vehicles by 2030.