India sold 7.3 lakh electric two-wheelers in FY23; Ola Electric leads the market

EVs are gaining mainstream momentum in India, riding on increasing vehicle awareness, accessibility, and affordability. Nearly 7.3 lakh electric two-wheelers (E2Ws) were sold in the country in FY23, which is 3X higher than the volume sold in FY22, according to Redseer’s latest electric mobility report.

Ola Electric continues to lead the charge in the segment with a 22 per cent market share in FY23. In the March quarter (Q4 FY23), however, its share went up to 30 per cent. “Their differentiated approach to providing end-to-end digital experience coupled with experience centers, tech-first product and efforts on making vehicles affordable has been the driving force behind them gaining market share in an explosively growing market,” Redseer explained in its report.

In a recent interview with Business Today, Ola Electric boss Bhavish Aggarwal had shared, “The future of EV is going to be technology-led and there are two or three major technologies that will define that. One is software and the other is energy and cell. We have expertise in both. So, once we master these technologies and build a platform, we can easily build different product segments on it. And once our supply chains are built out at scale on these core technologies, it will be very hard for anybody to compete.”

Overall, India’s EV market has gained from a variety of factors, including the influx of “tech-first, new-age” OEMs that are directly reaching out to Gen Z and millennial buyers;  the emergence of modern vehicle design and personalization; favourable government initiatives as well as demand-side tailwinds driving customer adoptions.

Indian E2W customers bought an average of ~60,000 electric vehicles per month in the last fiscal. “On the demand-side, rising fuel prices and increasing awareness and comfort towards electric vehicles is increasing, whereas on the supply-side, OEMs are focusing on vehicle quality, and putting effort on making the vehicle affordable to masses,” Redseer stated.

E2W adoption is projected to grow rapidly in this decade. Redseer estimates that E2W penetration will surpass ~30 per cent by next three years and ~75 per cent by 2030. ““India is the world’s largest two-wheeler market selling ~16 million vehicles in FY23. This offers massive headroom for growth of electric 2W… We have already seen aggressive electric adoption last year and this would only accelerate,” Mukesh Kumar, Associate Partner at Redseer Strategy Consultants, said in a statement.

“But few things that OEMs need to focus on are improving customer support and the after-sales service experience,” he added.

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