EV startups causing headaches for established two-wheeler firms | The Financial Express

EV startups causing headaches for established two-wheeler firms

It is interesting to note that EV startups in the two-wheeler segments are stealing the thunder from established big players in the industry in terms of wholesales. 

EV startups causing headaches for established two-wheeler firms
Ather Energy is another EV entrant to have capitalised on its sales on the back of the transition towards electric mobility.

The share of electric vehicles (EVs) in the Indian market has witnessed robust growth in the past two years, especially in the two-wheeler sector. It is interesting to note that EV startups in the two-wheeler segments are stealing the thunder from established big players in the industry in terms of wholesales. 

For instance, electric two-wheeler manufacturers like Okinawa Autotech and Ather Energy, who are also considered the dark horses, are already giving head-to-head competition to the prominent manufacturers as their sales have grown two-fold in the Q1 FY 2023 as compared to the corresponding quarter in FY 2022.

Sales figures:

Honda Motorcycle & Scooter India (HMSI) saw a 78 percent growth in its scooter wholesales as it sold 8,12,086 units in Q1 FY 2022 as against 4,55,214 units sold in the same period last year. Honda Activa and Dio, once again, led the scooter sales while the former constituted a majority of the company’s two-wheeler sales.

TVS Motors occupied the second spot with 4,08,036 units sold, up by 108 percent as compared to 1,96,037 scooters sold in Q1 FY 2022.

Suzuki Motorcycle India’s sales stood at 2,21,931, up by 30 percent as against its 1,70,313 units sold in Q1 FY2022. Suzuki’s old warhorse Access constituted a majority share in the company’s sales.

Hero MotoCorp ranked third as the sales stood at 1,04,885 in the quarter, a slight uptick of 15 percent as against 90,867 scooters sold in the first quarter of FY 2022. 

Yamaha’s sales saw an uptick of 60 percent on a YoY basis as the company sold 57,525 units as compared to 35,880 units sold in Q1 FY 2022.

Piaggio Vehicles sales stood at 17,329, up by 45 percent as against 11,912 units sold in Q1 FY 2022. 

Having witnessed a rather disappointing Q1 in FY 2022 with just 1,723 sales to show, Bajaj Auto staged a comeback in the scooter market as its sales grew by a massive 437 percent and stood at 9,261 in Q1 FY 2023.

Witnessing a two-fold growth in sales, Okinawa’s sales numbers stood at 42,744 in Q1 FY 2023. With the government’s persistent thrust towards electric mobility, the EV maker’s sales saw robust growth and saw a massive 260 percent uptick as compared to 11,888 in the corresponding quarter in FY 2022. The company’s Praise Pro electric scooter dominated its overall sales.

Ather Energy is another EV entrant to have capitalised on its sales on the back of the transition towards electric mobility. Ather’s sales stood at 13,265, a massive 219 percent growth on a YoY basis as against its 4,152 electric scooters sold in Q1 FY 2022.

Union Minister Nitin Gadkari, last year, said that the government intends to have electric vehicle (EV) sales accounting for 80 per cent of the two-wheeler segment.

Market share:

Honda Motorcycle & Scooter India (HMSI) continues to dominate the scooter market, capturing nearly half of it, having witnessed a slight 1.59 percent uptick in its market share, which stood at 48.13 percent as against 46.54 in the corresponding quarter last year. 

TVS Motors recorded substantial growth in its sales but witnessed a decline in its market share, which saw a 4.14 percent downfall, dropping to 20.04 percent. Meanwhile, Suzuki Motorcycle India occupied 17.41 percent of the market, rising from 13.15 percent recorded in the same period in FY 2022.

Hero MotorCorp’s market share stood at 9.29 percent, witnessing growth from its 6.21 percent in the corresponding quarter last year. On the other hand, Yamaha Motor India’s market share remained flat in the quarter. 

Electric scooter manufacturer Okinawa Autotech, despite witnessing a nominal downfall in its market share, stood strong in terms of sales. 

Piaggio’s market share, meanwhile, remained flat.

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