Electric two-wheeler (E2W) makers are witnessing robust growth in March, driven by a year-end sales push by OEMs, pre-buying ahead of expected price hikes, and the impending expiry of EV subsidies.
The industry has sold 127,232 units so far in March, already surpassing several full-month tallies to emerge as the second-highest monthly sales figure in the current financial year, according to Vahan data. The highest-ever monthly volume was recorded in October 2025, when the industry retailed 145,017 units, supported by festive demand.
Sales so far this month remain marginally lower than the 131,475 units sold in March 2025. However, the full-month tally could surpass last year’s figure, with five days still remaining.
The industry has sold 1.34 million electric two-wheelers so far this fiscal, significantly higher than the 1.15 million units recorded in the entire previous financial year.
Poonam Upadhyay, director, Crisil Ratings, said the pick-up in March E2W sales largely reflects the typical year-end momentum, as OEMs and dealers strive to meet annual targets. “Price revisions linked to commodity inflation and cost pressures are already coming through,” Upadhyay added.
Subsidy Exit
Several two-wheeler manufacturers have already flagged potential price hikes in the fourth quarter, as a sharp rise in the cost of key inputs — including precious metals such as silver and platinum, along with broader commodity inflation — has squeezed margins, forcing companies to pass on part of the increase to customers.
TVS Motor Director & CEO K N Radhakrishnan said the commodity price surge was driven by higher costs of aluminium, copper, zinc, and precious metals such as platinum, palladium, and rhodium. “We are closely monitoring the situation,” he said during the third-quarter earnings call, adding that the company is relying on scale benefits, cost optimisation, product mix, and selective price increases to offset the pressure.
Ather Energy CEO Tarun Mehta also flagged the impact of rising commodity prices, noting that this had increased the company’s raw material costs by 53% in the third quarter.
Raw materials typically account for 65%–75% of an OEM’s bill of materials (BoM). In EVs, silver contributes only about 1%–2% of the BoM, but remains highly volatile due to import dependence.
Crisil’s Upadhyay added that buyer interest has also been influenced by the impending expiry of the PM E-DRIVE Scheme, which offers EV subsidies ranging from ₹3,000 to ₹5,000 per vehicle and is scheduled to end in March 2026.
Barring April and December 2025, the E2W industry has consistently recorded monthly sales exceeding 100,000 units.
Market Shuffles
TVS Motor continues to lead the E2W market, selling 34,657 units and commanding a 27% market share. Bajaj Auto and Ather Energy retained the second and third positions, with 24% and 19% market share, respectively. Ola Electric, which recently lost its ranking to Greaves Electric, slipped to the fifth position, selling 5,952 units and holding a 5% market share.
