The sales of electric two-wheelers have taken a hit, especially with customers buying it for personal use according to a report by InCred Equities.
The company did a survey of EV dealers in the Mumbai region that found that after the subsidy cut, dealerships have not seen any recovery in the volumes. This is in contrast to the 50 percent recovery seen in the country from the low volumes seen in June. They say electric two-wheelers have become unattractive purchases due to sudden and sharp price increases post-subsidy cut.
InCred Equities found that dealers are facing profitability pressure as their volume has halved, thereby resorting to cost-cutting measures. In an interesting anecdote, the report found that one of the dealers stated it had not received good aftersales services and hence was forced to buy parts and extend free service from its own pocket to cater to the end customer. This impacted their working capital and profitability.
The impact of the revision of the FAME 2 subsidy on average saw the cost of the EV hiked between 8-30 percent or Rs 10,000 to Rs 38,000 per unit.
The report states that dealerships run by brands like Ola, have seen recovery due to the company absorbing a large part of the subsidy cut, but recovery was still below expectations.
On the other hand, brands like Ampere and Ather have experienced that 60-70 percent of new customers were buying E2W for commercial use. Whereas Ola saw 30 percent of its customers buying for commercial use.
| Prices trend (Rs.) | Before Subsidy cut | After subsidy cut | Change % |
| Ampere | |||
| Zeal | 87,000 | 107,000 | 23% |
| Magnus | 92,000 | 115,000 | 25% |
| Primus | 120,000 | 158,000 | 32% |
| Ather | |||
| Top model | 160,000 | 182,000 | 14% |
| Mid model | 143,000 | 167,000 | 17% |
| Small (recently launched) | 157,000 | na | |
| Ola | 144,000 | 155,000 | 8% |
| Bajaj Chetak | 150,000 | 175,000 | 17% |
| TVS | |||
| iQube S | 126,000 | 147,000 | 17% |
| iQube ST | 136,000 | 162,000 | 19% |
