Now Reading: EV two-wheeler demand boom creates supply crisis in India
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EV two-wheeler demand boom creates supply crisis in India
India's electric two-wheeler penetration hit a record 11.2 per cent in July, up from 7.7 per cent a year ago, triggering an unprecedented supply crisis. Original equipment manufacturers (OEMs) are facing 20-30…
India's electric two-wheeler penetration hit a record 11.2 per cent in July, up from 7.7 per cent a year ago, triggering an unprecedented supply crisis. Original equipment manufacturers (OEMs) are facing 20-30 per cent unfulfilled demand, with waiting periods exceeding four weeks.
EV two-wheeler sales surged 88.3 per cent year-on-year to 204,000 units in July. TVS Motor sales jumped 135 per cent, Bajaj Auto 122 per cent, Ather Energy 70 per cent, and Hero MotoCorp 111 per cent. The Federation of Automobile Dealers Associations (Fada) has urged OEMs including TVS, Ather, Bajaj and Hero to ramp up production.
OEMs are planning capacity expansions, but the demand-supply gap is expected to persist until the first half of 2027. The crisis may intensify during the upcoming festive season. Ather Energy is considering a second-phase expansion at its new Aurangabad facility, which will start production in a couple of months.
Indian Opinion Analysis
The 11.2 per cent penetration milestone, driven by volatile crude oil prices amid the West Asia crisis, has caught the industry off guard after years of single-digit adoption. The festive season starting September typically accounts for 30-40 per cent of annual two-wheeler sales, meaning the unmet demand of 20-30 per cent could translate into lakhs of lost bookings. Ather's existing Hosur plant can make 420,000 units a year, but that capacity is already strained. The company's upcoming Aurangabad unit, with an eventual 500,000-unit capacity, may not be fully operational until mid-2026. The real test is whether OEMs can cut waiting periods before the next round of state EV subsidies expires in 2027.
Source: rediff.com
This brief was synthesised by AI from the source linked above.
