Electric 2W rush hits supply roadblock as OEMs struggle to meet demand

Rising demand triggers high waiting period for major brands

In July, India’s domestic electric two-wheeler sales hit a record high in penetration, crossing 11.2 per cent, compared with 7.7 per cent during the same month last year. While the rising demand is attributed mainly to global crude oil price fluctuations, it has led to an unexpected crisis for Indian original equipment manufacturers (OEMs), with a new peak in unfulfilled customer demand. 

The unfulfilled demand for industry majors is now around 20-30 per cent, with an average waiting period of more than four weeks, according to multiple industry sources.  

The crisis is expected to intensify in the upcoming festive season. The Federation of Automobile Dealers Associations (Fada) has already asked major OEMs such as TVS Motor Company, Ather Energy, Bajaj Auto, and Hero MotoCorp to increase stocks, and expects the crisis to continue till the first half of 2027. The OEMs are considering various strategies, from production ramp-up to coming up with new units. 

"We have been requesting all two-wheeler players, such as Ather, TVS Motor and Bajaj, to improve production. Some players like Ather are already looking for aggressive production expansion. I don't think Indian OEMs expected this sudden rise in EV demand, with penetration crossing 11 per cent from the 7 per cent range in a year's time," said C S Vigneshwar, president, Fada. 

In absolute numbers, EV two-wheelers witnessed an 88.3 per cent rise in demand from 108,000 units in July 2025 to 204,000 in July 2026. This got reflected in the numbers of all the market leaders, with TVS Motor sales zooming 135 per cent from 23,592 units to 55,499 units, Bajaj Auto around 122 per cent to 45,613 units, Ather around 70 per cent to 30,357 units, and Hero around 111 per cent to 22,900 units, said Fada data. 

"We are seeing a 20-30 per cent unfulfilled demand across the industry for major players, with an average waiting period of up to four weeks. In the case of our company, two-wheelers witnessed a 120 per cent year-on-year [growth] during April-July, compared with around 75 per cent growth for the overall industry," Vikas Singh, managing director of Greaves Electric Mobility Ltd (GEML), told Business Standard. 

The volatility in international crude oil prices due to the global geopolitical crisis helped accelerate EV buying across vehicle segments and also got fence-sitters to shift to zero-emission mobility. "This is quite challenging in the short term. Hopefully, with increasing capacity investments, it will be a short-term challenge only," said Tarun Mehta, cofounder and chief executive officer of Ather Energy. With demand outpacing market expectations, Ather is reportedly considering a second-phase expansion at its upcoming 500,000-unit Aurangabad manufacturing facility, which will start production in a couple of months. The company's Hosur unit has an annual production capacity of 420,000 units now. 

"The West Asia crisis catalysed the surge due to challenges in fuel availability and an increase in fuel prices. Government support at the Centre and state levels is also a positive contributor. I agree with you that there is a lot of unmet demand and this gap may expand during the festive [season]," said Rakesh Sharma, joint managing director of Bajaj Auto. 

"Almost all segments of the auto industry are showing robust growth, with two-wheeler sales growing over 22 per cent, despite negative factors such as the Gulf conflict and concerns over a deficient monsoon. Nearly 10 months after GST (goods and services tax) rationalisation, sustained growth suggests that fundamental demand and consumer sentiment remain strong. EVs are growing even faster, while supply-chain constraints are increasing waiting periods for popular models," said Anurag Singh, managing director and chief operating officer, global capacity hub, at consulting firm Primus Partners.