Legacy Automakers Surge Ahead in India’s Electric Two-Wheeler Market, While EV Sales Face Setback in December
India’s electric two-wheeler (E2W) market has seen a shift in its competitive dynamics as legacy automotive players such as Bajaj Auto and TVS Motor outperformed Bhavish Aggarwal-led Ola Electric in December 2024, taking the lead in terms of escooter sales and market share. This development signals a significant change in India’s evolving E2W landscape, highlighting the emergence of well-established companies vying for dominance in this fast-growing sector.
In a year marked by high competition, technological advancements, and increasing demand for eco-friendly transportation options, December witnessed a remarkable reshuffle in the electric two-wheeler market rankings. Bajaj Auto and TVS Motor, long recognized for their strong foothold in the traditional two-wheeler industry, have made significant strides in the electric vehicle (EV) segment. Their electric two-wheeler sales surged in December, enabling them to outpace Ola Electric, a pioneer in India’s EV space, which has dominated the market for several months.
While Ola Electric had a strong presence throughout 2024, the December figures suggest a growing momentum for Bajaj and TVS, both of which have leveraged their legacy brand reputation, extensive distribution networks, and growing consumer trust in their products. TVS, with its iQube series of electric scooters, and Bajaj with its Chetak electric range, have both solidified their positions in the market by delivering high-performance electric vehicles backed by extensive service networks.
However, despite this market shake-up, the overall electric two-wheeler market faced a notable downturn in December. Total EV two-wheeler registrations dropped to an 8-month low, registering only 73,363 units—a significant 38.7% decline compared to 1,19,671 units in November 2024. This sharp dip in sales can be attributed to several factors, including the seasonality of sales, tightening government subsidies, and market saturation in some regions. Additionally, the year-end period traditionally sees a lull in consumer purchases as customers await new-year models or opt for year-end discounts from traditional internal combustion engine (ICE) two-wheelers.
The YoY comparison of electric two-wheeler registrations in December also revealed a slight contraction. A year ago, in December 2023, 75,945 electric two-wheelers were registered. This 3% decline on a YoY basis indicates a temporary slowdown in the market, which has been rapidly expanding over the past few years. Despite the seasonal and short-term drop in sales, the overall performance of the EV two-wheeler market in 2024 remained positive, driven by the long-term shift towards sustainable mobility options.
Looking at the broader picture, the electric two-wheeler market in India showed strong growth in 2024, with total registrations reaching an impressive 11.48 lakh units. This represents a 34% increase over the 8.60 lakh units registered in 2023, despite a reduction in government subsidies that was expected to hinder market growth. The subsidies, which have historically played a key role in incentivizing EV adoption, were scaled back in 2024 as part of the government’s ongoing policy adjustments. Despite this, the market demonstrated resilience, buoyed by a greater variety of EV options, improved battery technology, and growing environmental awareness among Indian consumers.
In conclusion, while the electric two-wheeler sector in India faces short-term challenges, the long-term growth trajectory remains promising. The December sales dip could be a temporary blip, with expectations of a rebound in the coming months. With legacy automotive giants like Bajaj Auto and TVS Motor now actively competing against the new-age leaders like Ola Electric, the E2W market is set to witness further innovation, competition, and growth in the years to come. The 34% increase in total EV registrations over the course of 2024 proves that the transition to electric mobility is well underway, making India a key player in the global EV revolution.
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