Electric two-wheeler (E2W) makers posted their second-highest monthly sales on record in May, as fuel price hikes, improving ownership economics and flexible financing accelerated the shift to electric mobility.
E2W registrations surged 58% year-on-year to 1,65,998 units in May, according to Vahan data. The industry’s only stronger monthly performance came in March, when registrations hit an all-time high of 1,92,508 units, aided by a year-end sales push and advance purchases amid expectations of price hikes by OEMs due to rising raw material costs linked to the West Asia conflict. Sales were also up 18% sequentially from 1.39 lakh units in April, indicating sustained demand for electric scooters across the country.
Market Share Shuffle
TVS Motor retained its leadership position with registrations rising 25% year-on-year to 41,558 units, accounting for about one-fourth of all E2Ws sold during the month. TVS Motor Director and Chief Executive Officer K N Radhakrishnan said growing EV adoption is being supported by affordability and strong financing penetration.
“If you look at the year as a whole, the penetration has moved from 6.2% to 6.6%. I’m very sure that EV 2-wheelers will continue to increase the penetration and the momentum will continue this year,” he said during the company’s Q4FY26 earnings call.
Bajaj Auto consolidated its second position, with registrations rising 68% year-on-year to 38,012 units, giving it a market share of nearly 23%.
In the last two weeks, petrol and diesel prices have risen by ₹7 per litre through multiple hikes, stoking concerns over household budgets as transportation and food costs increase. Ather Energy Chief Executive Officer Tarun Mehta had indicated that changing consumer behaviour could provide a significant demand boost for both the company and the broader E2W industry.
“Even without that (fuel price hike), just the LPG crisis itself I think has put this question in the mind of every customer that maybe it is electric and electricity which is the most reliable commodity,” Mehta said during the company’s fourth-quarter earnings call.
He said the company was witnessing a shift in consumer thinking from “if you’re buying an electric, then at least keep one petrol in the family, one petrol vehicle” to “well, you can have all vehicles, but at least keep one electric vehicle in the family, for that rainy day.” “So I think there is a larger shift underway here,” Mehta added.
The shift in consumer behaviour was visible in Ather’s monthly performance with registrations nearly doubling to 27,523 units in May from 14,016 units a year ago. Its market share also expanded to 17% from 13% during the same period.
Volatile Fuel
Hero MotoCorp reported the fastest growth among the top five E2W manufacturers, with registrations jumping 147% year-on-year to 18,261 units in May. Growth was driven largely by its Battery-as-a-Service offering, which lowers upfront acquisition costs with select models available as low as ₹44,990.
Ola Electric reported a 22% year-on-year decline in registrations to 14,752 units in May. However, the company has shown a steady recovery in monthly volumes over recent months. Registrations rose from 3,968 units in February to 10,117 units in March, 12,166 units in April and 14,752 units in May.
“With the fuel price rise, seeing a lot of demand for our EVs from the gig ecosystem. They need EVs the most as their daily run and fuel cost is the highest,” Ola Electric founder and CMD Bhavish Aggarwal wrote on X last week.