The rise of the traditional players
Indian two-wheeler giants, TVS and Bajaj Auto, have been making significant moves in the electric two-wheeler market in recent months. Both companies have expanded their hold by registering more electric vehicles than new players such as Ather Energy and Ola Electric. As per the government’s vehicle portal, TVS and Bajaj Auto now hold a substantial 37.1 percent of the electric two-wheeler registrations for September, a notable increase from 24.5 percent in June. This displays their assertive approach to cater to the rising demand for environmentally-friendly transportation options.
Challenge of the new models
Unfortunately, several startups in the electric two-wheeler industry are encountering obstacles in securing government approval for their latest models to receive the FAME 2 subsidy. FAME 2, a program implemented by the central government, offers monetary incentives to individuals purchasing electric vehicles.
In a recent development, Ola and Ather debuted new electric scooter models; however, their release has been hindered by the absence of approval. Additionally, the companies have faced limitations in transferring the scooters from their production facilities to the designated retailers.
A senior official of one of the affected companies said, “We have a huge backlog of bookings that we are not able to fulfill. We are waiting for the government to clear our new models for FAME 2.”
He added, “We hope this is a temporary issue and we will be able to resume our operations soon.”
Outlook for the festive season
The upcoming festive season is expected to bring about a rise in demand for electric two-wheelers, as more and more consumers seek out cost-effective and eco-friendly alternatives to traditional vehicles. With the presence of numerous players in the market, competition is bound to heat up as they strive to entice customers with enticing deals and impressive features.
The traditional players like TVS and Bajaj Auto have an edge over the newcomers in terms of their brand recognition, distribution network, and after-sales service. However, the startups like Ola and Ather have an advantage in terms of their innovation, design, and technology.
It remains to be seen who will emerge as the winner in this exciting race for the future of mobility.