The Federation of Automobile Dealers Associations (FADA) has released the electric vehicle (EV) retail sales data for May 2024 indicating some recovery across various segments following the significant decline post the conclusion of FAME 2 subsidies in March. Despite this modest increase, the market share for electric commercial vehicles, two-wheelers, and three-wheelers has remained relatively stagnant over the past few months.
FADA President Manish Raj Singhania commented on the data, mentioned 'May 2024 has shown a slight recovery in electric vehicle (EV) retail across various segments following the major decline caused by the conclusion of FAME 2 subsidies in March. Despite this modest increase, the market share for electric commercial vehicles, two-wheelers, and three-wheelers has remained relatively stagnant over the past few months.'
The electric two-wheeler market saw a total of 76,907 units sold in May 2024, an 18.12% increase from April 2024. Ola Electric Technologies led the segment with 37,225 units, marking a 9.60% month-on-month (MoM) increase and a 29.51% year-on-year (YoY) growth. TVS Motor Company and Bajaj Auto Group followed, with TVS posting a substantial 53.59% MoM increase but a 42.31% YoY decline, and Bajaj Auto recording a 22.38% MoM increase and an 8.75% YoY decline.
In the electric commercial vehicle sector, total sales reached 551 units in May 2024, reflecting an 8.04% MoM increase and a 6.4% YoY growth. Tata Motors led the segment with 247 units, despite a 4.63% MoM decline but an 8.3% YoY growth. Other notable performers included PMI Electro Mobility Solutions, which saw a 35.4% YoY increase, and VE Commercial Vehicles, which recorded a 28.57% MoM growth.
The electric passenger vehicle market showed mixed results with 7,638 units sold in May 2024, a slight 3.01% YoY decline but a 3.00% MoM increase. Tata Motors Passenger Vehicles remained the leader with 5,083 units, posting a 2.56% MoM increase but a 15.54% YoY decline. MG Motor India showed impressive growth, with a 19.78% MoM increase and a 210.56% YoY growth.
The electric three-wheeler market saw total sales of 54,729 units in May 2024, a 30.21% MoM increase and a 22.60% YoY growth. Mahindra Group led with 4,536 units, a 44.37% MoM increase and a 12.67% YoY growth. Mahindra Last Mile Mobility also showed strong performance with 4,427 units sold, a 47.52% MoM increase.
The automotive industry is eagerly awaiting the announcement of FAME 3 by the newly formed government. Singhania expressed optimism about the potential impact of FAME 3, stating, 'The introduction of new subsidies and incentives under FAME 3 will provide the necessary boost to EV sales and help increase their market share significantly. FADA remains committed to supporting this transition and looks forward to collaborating with all stakeholders to drive the growth of sustainable mobility solutions in India.'
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