Slight recovery in EV retail sales before May 2024, reports FADA mobility outlook

The Federation of Automobile Dealers Associations (FADA) has released retail sales of electric vehicles (EV) for May 2024, indicating some recovery in several segments after the significant decline following the completion of FAME 2 subsidies in March. Despite this modest increase, the market share of electric commercial vehicles, two-wheelers and three-wheelers has remained relatively stable in recent months.

Commenting on the data, FADA President Manish Raj Singhania said, “May 2024 has seen a slight recovery in electric vehicle (EV) retail sales across segments, following the major decline caused by the completion of FAME 2 subsidies in March. Despite this modest increase, the market share of electric commercial vehicles, two-wheelers and three-wheelers has remained relatively stable in recent months.’

The electric two-wheeler market saw a total of 76,907 units sold in May 2024, up 18.12% from April 2024. Ola Electric Technologies led the segment with 37,225 units, registering an increase of 9.60% month-on-month (MoM) and a 29.51% year-on-year (YoY) growth. TVS Motor Company and Bajaj Auto Group followed, with TVS posting a substantial 53.59% month-on-month increase but a 42.31% year-on-year decline, and Bajaj Auto up 22.38% month-on-month and a decline of 8.75% on an annual basis.

In the electric commercial vehicle sector, total sales reached 551 units in May 2024, reflecting an increase of 8.04% month-on-month and a growth of 6.4% year-on-year. Tata Motors led the segment with 247 units despite declining 4.63% month-on-month but growing 8.3% year-on-year. Other notable performers included PMI Electro Mobility Solutions, which rose 35.4% year-on-year, and VE Commercial Vehicles, which recorded 28.57% month-on-month growth.

The electric passenger car market showed mixed results with 7,638 units sold in May 2024, down slightly 3.01% year-on-year but up 3.00% month-on-month. Tata Motors Passenger Vehicles remained the leader with 5,083 units, up 2.56% month-on-month but down 15.54% year-on-year. MG Motor India showed impressive growth, up 19.78% month-on-month and 210.56% year-on-year.

The electric three-wheeler market saw total sales of 54,729 units in May 2024, up 30.21% month-on-month and growing 22.60% year-on-year. Mahindra Group led with 4,536 units, up 44.37% month-on-month and growing 12.67% year-on-year. Mahindra Last Mile Mobility also posted strong performance with 4,427 units sold, up 47.52% month-on-month.

The automotive industry is eagerly awaiting the announcement of FAME 3 by the newly formed government. Expressing optimism on the potential impact of FAME 3, Singhania stated, “The introduction of new subsidies and incentives under FAME 3 will provide the necessary impetus to the sales of electric vehicles and help significantly increase their market share. FADA remains committed to supporting this transition and looks forward to working with all stakeholders to drive the growth of sustainable mobility solutions in India.”

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Mixed results in Indian auto retailing for May 2024: FADA