Electric 3-wheeler sales rise 23% in May; industry awaits FAME 3: FADA | Auto
Electric 3-wheeler sales rise 23% in May; industry awaits FAME 3: FADA | Auto
Electric three-wheeler (E3W) sales in India saw an increase of 22.6 per cent in May 2024 compared to the same month last year, according to a report released by the Federation of Automobile Dealers Associations (FADA). A total of 54,729 electric three-wheelers were sold in May 2024, up from 44,641 units in May 2023.
Despite this growth, industry players have reported ‘stagnant’ sales of electric two and three-wheeler vehicles, particularly following the conclusion of the government subsidy scheme Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) in March.
Upon releasing the May 2024 EV retail sales data, FADA President Manish Raj Singhania said, “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.”
Month-on-month EV sales rose by 30.21 per cent from 42,030 E3W units in April 2024, indicating a positive uptick in the retail of electric vehicles.
“The automotive industry is eagerly looking forward to the announcement of FAME 3 by the newly formed Government. We believe that 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,” Singhania said.
In terms of specific companies, Mahindra Group recorded the highest number of EV sales at 4,536 units, reflecting a 12.67 per cent increase compared to May 2023. Sequentially, Mahindra Group saw a 44.37 per cent rise in sales. YC Electric Vehicle followed, selling 3,779 units in May 2024, up 16.49 per cent year-on-year.
Atul Auto Ltd experienced nearly 130 per cent growth in sales in May 2024 compared to the same month last year, selling 940 units. The firm almost doubled its sales from the previous month, when it sold 441 units.
Earlier the FADA had reported a 1 per cent drop in sales of passenger vehicles in India in the month of May. This drop was attributed to India’s hot summer, the end of the 2024 general elections and cash restrictions. As the new government forms and more stability comes in, sales are expected to pick up.
First Published: Jun 11 2024 | 5:22 PM IST
