Costly E2Ws slows down November sales
According to Society of Manufacturers of Electric Vehicles, the clean and green energy two-wheeler sales fell 4.7 per cent YoY to 73,774 units in November 2023 from 77,376 units in year ago period.
The sales of electric two-wheelers have fallen, both on year-on-year and month-on-month basis. According to Society of Manufacturers of Electric Vehicles (SMEV), the clean and green energy two-wheeler sales fell 4.7 per cent to 73,774 units in November 2023 from 77,376 units in year ago period. While, E2W sales took marginal dip in comparison to the preceding month in which 74,913 units were sold in October 2023.
Sales dipped in November 2023 vis-à-vis preceding month because consumers got more discount and benefits during the festive season in the country, a major portion of which fell in October 2023.
On yearly basis, sales took a hit because government reduced FAME-II subsidy from June 1, 2023, onwards. Earlier customers used to get subsidies to the tune of 15,000/kwh plus 40 per cent of the ex-factory price of the E2W. But from June 1, 2023, onwards, customers get only 10,000/kwh plus the additional subsidy on ex-factory price has also been reduced to 15 per cent. So this has made E2Ws costlier.
Albeit, its not that E2W sale has plunged deeply after subsidy cut. Companies had reported sharp reduction in sales immediately after the subsidy cut, but, sales gradually picked up from July 1, 2023, onwards. November 2023 was the first time that sales dipped on month on month basis after the subsidy cut jolt. Since July 2023, green energy two wheeler sales had increased continuously every month uptill October 2023.