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Luxury EV market in India over the year
The automobile sector of the Indian economy is now ranked fifth internationally, but by 2030, it is anticipated to rise to third. Considering the reality that most vehicles still use fuel, the switch to EV mobility has already begun. Overall EV sales in October 2022 increased by 28.1% over the previous month to 1,19,889 units. In fact, there has been a growth of almost 200% year over year. By 2022, sales of all two-wheelers, three-wheelers, and four-wheelers had increased by up to 200%. This demonstrates the commitment of consumers to EV purchases.
Growing EV industry
Since 2014, the electric motorbike and scooter business in India has been expanding steadily. Approximately 15L electric bikes and scooters will be purchased in 2019, a 20.6% yearly increase from 2014. Even by the close of 2025, it is anticipated that annual sales volumes would total 10L units, with a CAGR of 57.9% from 2020 to 2025. The sales growth volume is anticipated to increase to over $1 billion by 2025, with a CAGR of 63.9% from 2020 to 2025. Sales of electric 2W increased by 16% over the prior quarter in the September quarter to 162,215 units. In comparison to the comparable quarter last year, there was a staggering 225 percent gain year over year. As sales of
electric two-wheelers
in India topped 75,000 units for both the consecutive month in November, the market for these vehicles was also seeing tremendous growth. In all, there were more E2W registrations over the last two months than there were in 2021 as a whole. This is closely related to the FAME II subsidy's implementation last year. The cost of EVs further decreased because of the additional subsidies offered by each state, which contributed to the year's higher demand.The Premium EV Market
The leading electric automaker in India,
Ola Electric
, announced on Thursday that it has increased its revenue sales volume to 50% spanning EV and ICE 2Ws in the luxury scooter class. From 1400 EVs in June 2021 to 16000+ sales in the month of November 2022, Ola Electric has reached 90% EV share in the luxury scooter segment this month. The penetration of the Ola EVs accounted for the year 2022 can be attributed to many factors. Such as the rising price of the fuel & the incapable mileage,Transition to E2W segments is inevitable. The festive month of october also played an important role in gaining the total EV market share. Ola has also promised that EVs market share will be 100% in all 2W segments by end 2025.
Bajaj Auto
intends to spend Rs 750 crore on capital expenses in the current fiscal year, FY23, to build up their EV 2W facilities and increase the sales of its premium scooters. In recent years, the corporation has made some of the greatest yearly contributions for the introduction of innovative technologies and capacity expansion. The present investment, according to Dinesh Thapar, CFO of Bajaj Auto, is an improvement over previous investments. The money is specifically designated for building a two- and three-wheeled electric vehicle (EV) factory at Waluj, Maharashtra. Additionally, according to Thapar, a portion of the investment would be utilised to expand a new production plant which will be utilised to produce Bajaj's Premium scooter, Chetak EV. This will further contribute to the expansion of the Luxury EV 2W market in the upcoming year.Many exciting newcomers are to be seen in this year's premium 2W market segment. When
Ultraviolette
revealed the F77's price a few days ago, everyone's minds were completely blown. The base trim has the potential to be the quickest electric bike produced in India despite having a lesser battery and motor tuning. However, the cost of such an exhilarating performance, which comes to Rs 3.80 lakh, limits it to those committed early adopters. But, as per the craze of EV consumers in India, the bike has been completely sold out after just two hours of its opening for bookings. This well indicates how much the consumers are looking out for EVs as the substitute for its ICE counterparts. The F77 will be competing with its 300cc ICE counterparts such as the Apache RR 310 & BMW G 310.
The market leaders of the ICE luxury scooter segments are also eyeing to enter the EV sector. The well-known company Vespa is preparing to enter India's market for electric mobility. Elettrica is the name of the EV sub-brand created by Italian automaker Piaggio to create electric Vespa scooters. Since the market for electric two-wheelers in India is steadily growing, the business is now preparing to debut its electric scooter. Other premium companies like Suzuki are also planning to launch its
Burgmann Electric
model anytime in the coming future.Conclusion
The advent of these much larger market leaders to the luxury EV two-wheeler industry can disrupt the market share of the present leaders like Ola, Bajaj, etc. But as per sources, it will take a lot of time before these companies finally introduce their products in the market. Until then, companies like Ola & Ather are the future of the EV market segment of India.
These EV manufacturers are aiming to take over the whole two-wheeler market segment and with their intent as well as the craze of the Indian consumers, this could happen really sooner than later.