Electric Two-Wheeler Sales Surge 20%, Bajaj Auto Gains Market Share

By Editor


In September this year, the sales volume of electric two-wheelers (E2W) witnessed a substantial rise, surging by 20 percent year-on-year and 2 percent on a monthly basis, as per a report released by BNP Paribas India EV report–October 2023. Despite leading the segment in volume, Ola Electric (Ola) experienced a drop in market share on a month-on-month basis, sliding to 29 percent, reflecting a decrease of 66 basis points.

Bajaj Auto emerged as the frontrunner in gaining market share with a notable increase of 11.1 percent, a rise of 57 basis points. In contrast, Ola saw the largest decline in market share, closely followed by Okinawa.

Among the top-five original equipment manufacturers (OEMs), Bajaj Auto reported the highest monthly sales volume growth, while Okinawa witnessed a decline in sales volume. The report did not reveal the electric scooter market share of Hero Electric.

Kumar Rakesh, an analyst specializing in IT and Auto, noted that monthly sales volume growth varied across states, with Bihar marking the highest growth at 27 percent. Additionally, penetration rates saw the most significant improvement in Karnataka, advancing to 9.9 percent from the previous month’s 9.5 percent.

In the electric passenger vehicle (EPV) segment, sales volume demonstrated a substantial year-on-year increase of 71 percent, but a concerning decline of 9 percent on a monthly basis, marking the third consecutive monthly decrease and a 23 percent drop from its peak in March this year. Electric vehicle (EV) penetration in passenger vehicles (PVs) also experienced a slight deterioration, decreasing to 1.5 percent from the previous month’s 1.7 percent, as indicated by the report.

Rakesh further elaborated that EPV penetration as of FYTD24 stood at 1.8 percent, with Kerala witnessing the most significant decline in penetration, dropping to 3.7 percent from 4 percent in August. Tata Motors’ EV mix also experienced a decrease, falling to 10 percent from 11 percent on a monthly basis.

The report emphasized that new model launches at attractive prices would continue to drive E2W sales and structurally enhance EV penetration. However, the electrification of passenger vehicles (PVs) remained under pressure, with penetration and volume witnessing a decline in recent months. The report highlighted that for PVs, new model launches have been a vital factor for penetration, and in the absence of new model releases, this trend is expected to persist in the near term.

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