EV Sales Show Slight Recovery In May 2024: FADA

The Federation of Automobile Dealers Associations (FADA) has released its EV retail sales data for May 2024, showing a modest recovery across various segments following the end of the FAME-II subsidy scheme on March 31. The discontinuation of these subsidies had previously caused a significant decline in sales.

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.”

In the electric two-wheeler market, 76,907 units were sold in May, marking an 18.12 per cent increase from April 2024. Ola Electric Technologies led the segment with 37,225 units sold, followed by TVS Motor Company with 11,788 units and Bajaj Auto Group with 9,214 units.

The electric passenger vehicle segment saw a 3 per cent month-over-month increase in sales, with 7,638 units sold in May compared to 7,415 units in April. However, on a year-over-year basis, this represented a 1.24 per cent decline from the 7,734 units sold in May 2023. Tata Motors remained the market leader with 5,038 units sold, though this was down from 6,018 units in the same month last year.

Singhania added, “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.”

Electric three-wheeler sales experienced a significant month-over-month growth of 30 per cent, reaching 54,729 units in May compared to 42,030 units in April. Additionally, sales of electric commercial vehicles increased by 8 per cent month-over-month, from 510 units in April to 551 units in May.