In the dynamic world of electric mobility, the festive season has proven to be a significant catalyst for growth, particularly in the electric two-wheeler segment. As consumer interest continues to rise, the demand for eco-friendly alternatives to traditional vehicles has surged. In FY25, this shift in consumer behavior played a pivotal role in boosting sales, with electric two-wheelers becoming a popular choice for many. Yogesh Bhatia, Managing Director and CEO of LML, sheds light on how this festive surge has influenced the market and what it means for the future of electric mobility in India.
October was a month of widespread celebrations across the country, with the extended festive season spreading joy and excitement. The electric vehicle (EV) industry also felt the festive surge, as demand for eco-friendly vehicles saw a significant rise. Among the most notable trends was the growing consumer interest in electric two-wheelers, which experienced a substantial boost in sales. In fact, just days before Diwali, electric scooter registrations had already surpassed the one lakh mark, setting a positive tone for the industry. By the end of the festive period, the sales numbers were highly encouraging, reflecting a rising wave of consumer interest in green mobility.
In October 2024, retail sales of electric two-wheelers surged by 85% year-on-year, reaching 1,39,031 units. This impressive growth can be attributed to several key factors. The tradition of making significant purchases during auspicious occasions like Navratri, Dhanteras, and Diwali naturally drove up vehicle sales. Furthermore, the increasing popularity of electric two-wheelers, combined with proactive preparations by manufacturers, helped capitalize on the festive demand. Many companies launched attractive deals and offers on their best-selling models, drawing in more buyers eager to make the most of the festive season.
Several prominent players in the electric two-wheeler space announced significant price reductions on some of their models, making electric two-wheelers more accessible to a wider audience. These attractive discounts provided a welcome relief to potential buyers, who were hesitant to make the switch to electric mobility due to the high upfront costs of electric vehicles. In addition to attractive pricing, numerous e-scooter manufacturers also offered lucrative benefits such as cashbacks, extended warranties on vehicles or batteries, free access to charging stations, free upgrades and even free accessories. With so many tempting deals available during this festive season, consumers had plenty of reasons to consider purchasing an electric two-wheeler. These offers not only helped in boosting sales numbers but also raised awareness about the benefits of electric two-wheelers.
Some key players also partnered with banks and credit card companies to offer attractive deals and discounts, flexible EMI schemes, etc. Additionally, many electric two-wheelers were made available for purchase on multiple ecommerce platforms that ran significant festive promotions, thus triggering sales. Apart from these festive promotional offers, the introduction of new models during the last two months further stimulated the demand of electric two-wheelers in India. Manufacturers have unveiled a range of innovative and feature-packed models that cater to the needs of the modern Indian consumers. This provided them a range of exciting new options to choose from – those that are not only environmentally friendly but also boast superior technology and aesthetics. As a result, there was a noticeable increase in sales.
Government incentives and subsidies too were a driving force behind the increase in electric two-wheeler sales in India this festive season. Consumers were more willing to make the switch knowing that they would be eligible for government benefits and support in their journey towards a greener future. Thus, the combination of these incentives, festive spirit, and auspicious timing has acted as the much-needed spark for the EV industry.
Interestingly, this increase in demand for electric two-wheelers came not only from the metro cities, but also from the country’s tier-2 and tier-3 markets. This trend indicates a growing awareness of environmental issues, changing consumer preferences and an increasing acceptance of electric mobility in India. Further supporting this claim, data shows that a total of 9,54,164 electric two-wheelers were sold in the first 10 months of the calendar year 2024. This marks a 38% annual increase from the previous year’s sales of 6,92,363 units during the same period.
With the continued upward trajectory in demand for electric two-wheelers, the industry is positioned for substantial growth and innovation in future. Manufacturers are continually investing in research and development to improve battery technology, increase range, and enhance vehicle performance. With these advancements in technology, electric two-wheelers are bound to become more affordable and accessible to the masses. Thus, the path ahead looks promising. The nation is gradually getting ready to embrace this clean and green technology, thus paving the way for a more sustainable and eco-friendly future.
