Muristek
Vijay C Roy
Chandigarh, March 9
It seems electric two-wheeler space is hotting up. In February, all major electric two-wheeler makers registered a sharp increase in sales while internal combustion engine-powered two-wheeler manufacturers witnessed decline in sales, as per data of Federation of Automobile Dealers Associations (FADA).
"The two-wheeler segment is showing no signs of recovery as economic conditions are likely to play spoilsport. With the cost of acquisition continuously going north, the inquiry level remained weak. As corporates and educational institutions continued operating from home, urban demand also took a hit," according to FADA.
Overall, two-wheeler sales declined by 10.67% to 9,83,358 units in February as compared to 11,00,754 units in February 2021. The data includes sale of electric vehicles. In comparison, over 27,400 electric vehicles were sold in February as compared to 5,427 units in February 2021.
Currently, the EV penetration is extremely low at less than half a per cent nationally. As far as northern states are concerned, the penetration is even lower than the national average.
According to insiders, high acquisition cost and lack of infrastructure are acting as stumbling blocks. EVs are sold at 20-50% premium as compared to internal combustion vehicles, mainly because of battery which is majorly imported and it constitutes 50-60% of the total vehicle cost.
Secondly, lack of charging infrastructure is also acting as a deterrent.