Despite a host of fire incidents and supply-chain constraints, the share of electric models in total two-wheeler registrations has remained between 3-4 per cent in the April-June period, according to analysts at Jefferies.
Electric models accounted for merely 0.15 per cent of the total two-wheeler registrations in FY20. While their share increased to 0.35% in FY21, the performance was much better at 1.93 per cent in FY22.
After making a contribution of 4.28 per cent in March, the share of electric two-wheelers has held up at 3-4 per cent in April-June, Jefferies analysts wrote. Although the fire incidents have resulted in higher customer queries on safety, they have not impacted demand much, they opined.
Electric scooters of companies like Ola, Okinawa, Hero Electric, Pure EV, Jitendra New EV, and Boom Motors have been involved in fire incidents in recent months.
Besides, the industry has had to deal with supply-chain constraints owing to a shortage of semiconductors worldwide, exacerbated by the geopolitical situation. Many original equipment manufacturers (OEMs) have cut their production due to shortage of components, including semiconductors.
However, in such a scenario, OEMs have resorted to alternative design and sourcing in the last few months, so that they are not specifically buying one particular type of semiconductor.
Society of Manufacturers of Electric Vehicles (SMEV) president Sohinder Gill recently told FE that some of the leading chip suppliers are giving delivery timelines of 12-18 months.
Jefferies analysts also said that Ola, Okinawa, and Ampere have ramped up their volumes well in 2022. From 14,100 units in the March quarter, Ola’s registrations have risen to 26,000 units in June QTD (quarter to date), translating into 23 per cent market share during the period.
Okinawa’s registrations have shot up from 19,800 units in the March quarter to 25,400 units in June QTD, resulting in a market share of 22 per cent, while that of Ampere from 14,900 units in the March quarter to 16,500 units in June QTD, with the company’s market share at 14 per cent.
“The Okinawa ecosystem comprises everything, including the supply chain of other products that are sourced to make the electric two-wheelers in India. In the last five years, we have developed all the components for electric vehicles in India and we work with the suppliers to make those components as well,” said Jeetender Sharma, founder and managing director, Okinawa.“We have successfully developed a complete supply chain in India by making customers and suppliers a part of our journey,” Sharma added.