Bajaj to TVS, legacy ICE players assert dominance in EV two-wheeler segment

Bajaj Auto, TVS and Hero Motocorp collectively grab nearly half the electric two-wheeler market share in the second half of September till 17th

Legacy ICE players Bajaj Auto, TVS and Hero Motocorp have responded to the challenge thrown by certain two-wheeler startups -- which have forecast their demise. The three players are collectively close to achieving a new milestone by grabbing nearly half the electric two-wheeler market share in the second half of September till 17th, VAHAN figures suggest.

The three players now control 48.4 per cent of the electric two-wheeler sweepstakes with their collective registrations hitting 20,363 vehicles in the month of September till 17th. However, in May the same three players had only 31.4 per cent of the electric two wheeler market.

Bajaj Auto has for the first time overtaken its arch rival TVS in the electric two-wheeler sweepstakes to grab the second spot, with its registrations in the first half of September till 17th hitting 9,256 vehicles accounting for 22.09 per cent share of the market.

In comparison, TVS with 8,798 vehicles (with a market share of 21 per cent) is now in the third spot after ruling as number two for many months.

Clearly market leader Ola Electric is under pressure. Its market share based on registrations in the same period has hit below 30 per cent. And its once yawning gap with Bajaj has become narrower. The Bhavish Aggarwal-promoted company which just had a successful IPO till 17th of September hit a market share of 29.1 per cent with 12,221 vehicle registrations.

The churn in the electric sweepstakes has in many ways been led by Bajaj Auto-through a twin strategy of increasing distribution as well as taking on Ola head on in the sub ~1 lakh electric segment where it was not present earlier.

The gamble has clearly worked. Bajaj saw its market share based on VAHAN registration data fly from a mere 11.6 per cent in June this year to hitting 19.3 per cent in August. In the same period market leader Ola Electric which controlled 47.5 per cent of the market fell to 32.1 per cent in August. And TVS also saw a marginal increase.

However, the other significant start up in the game Ather Energy which has also announced it is going for an IPO, launched its electric scooter just months ago. That seems to be showing traction in its share in September to date is up to 14.1 per cent and it has sold over 5,934 vehicles.