As previously announced, the Government of India had announced a reduction in the amount of subsidy for the FEM-II project from the beginning of June. As a result, almost every company doing business in the country announced to increase the prices of their battery-powered two-wheelers in turn. Experts feared that this could affect sales. By the end of June, the published statistics proved that their fears have come true.
FAME II reduced subsidy sales of electric scooters
In May, the Center reduced the amount of subsidy payable under FEM-II scheme from 40% to 15%. Again, financial assistance is capped at a maximum of Rs 10,000 per kilowatt. That is why leading electric scooter manufacturers including Ola Electric, TVS Motor have gone on a price hike. And that’s why the companies witnessed a slight decline in sales in June compared to May.
For example, Ola Electric, India’s largest electric scooter maker, sold 28,629 units of the two-wheeler in May this year. Whereas the company sold only 17,572 units in June. As a result, sales fell by 38.62%. TVS Motor, which is at the next position, sold only 7,791 iQubes last month. Whereas the previous month’s sales were 20,397 units.
Third-placed Ather Energy saw the biggest decline in sales. In June this year, 4,543 new buyers brought their two-wheelers home. Whereas Ether witnessed a 70.51 percent decline in sales last month as the number of units sold in May was 15,507 units. Bajaj Auto (Bajaj Auto) and Okinawa Autotech (Okinawa Autotech) at the fourth and fifth positions have sold 2,966 and 2,616 respectively. Whereas in May it sold 9,965 and 2,907 units respectively. That is 70.24% decline in sales of Bajaj Auto. In fact, sales of electric scooters in India last month are reminiscent of 2021. When such two-wheelers were not so popular in this country.