Sales of electric two-wheeler vehicles, the mainstay of India's EV market, witnessed a slight decline in April compared to the same month last year, according to data released on Thursday by the Federation of Automobile Dealers Associations (FADA).
Deliveries fell 2.63% to 65,111 units, down from 66,873 units a year earlier, amid concerns over reduced government subsidies and rising electric two-wheeler prices.
There have been uncertainties regarding the fate of the demand subsidy given by the government post-expiration of the new Electric Mobility Promotion Scheme 2024 (EMPS) in July. The new scheme was rolled out for four months after the FAME 2 scheme expired on March 31.
It is unclear whether the new scheme will be extended or a third phase of FAME will be launched when the newly formed government presents the full budget for the financial year 2025 in July. Meanwhile, the subsidy given by the government through the new scheme is lower when compared to what was given through the FAME 2 scheme. With the new scheme coming into effect from April 1, the subsidy for electric two-wheelers has been halved to Rs 5,000 per kWh from Rs 10,000 per kWh with a maximum limit of Rs 10,000 per vehicle.
However, the broader electric vehicle market displayed robust growth in other segments. Electric three-wheeler sales surged 10.36% to 42,030 units, while electric passenger vehicles saw a significant jump of 22.79% to 7,415 units. The electric commercial vehicle segment also experienced a strong showing, with sales rising 43.3% to 510 units.
FADA India represents over 15,000 automobile dealerships with over 30,000 dealership outlets, including multiple associations of automobile dealers at the regional, state and city levels, representing the entire auto retail industry. Collectively, it claims it employs 4.5 million people at dealerships and service centres.