E2W sales have taken a slight hit as a result of recent fires and safety concerns. EV registration in India has declined in the month of April 2022.
Electric vehicle registrations fell 6% in the first month of FY23 compared to the previous month, as the discussion about EV safety and power sources for charging EVs heated up. However, year-over-year figures showed a significant increase.
Total registered EV sales in April 2022 were 72,519 units, up from 77,243 units in March 2022 and 14,179 units in April 2021, according to data from Vahan Dashboard.
Electric two-wheelers and passenger-type electric three-wheelers drove EV registrations in April 2022, accounting for almost 93% of overall registrations. Electric automobiles (almost 4%), cargo-type electric three-wheelers (3%), and other categories came in second and third, respectively, according to a JMK Research survey.
Last month, overall high-speed electric two-wheeler registrations were around 49,141 units, compared to 49,491 units in March 2022, as the month saw increased debate over recent fire incidents involving electric two-wheelers and the resulting recall of electric scooters by companies like Ola, PURE EV, and Okinawa.
EV Registration in India: Supply chain collapse
Hero Electric, India’s leading electric two-wheeler manufacturer, stated the company’s manufacturing was hampered by an overseas chip shortage, which has pushed up the waiting list for its clients to 60 days or more, and some dealerships had no stock to show.
“It’s like putting an emergency brake on a fast-moving train. Our sales were almost doubling month on month and we somehow managed with sourcing from different geographies but the war collapsed a major supply chain resulting in this disruption,” Sohinder Gill, CEO, Hero Electric, said.
“The recent happenings of fire incidents is an awakening call for the industry and we believe that even the best of the companies should introspect and constantly improve their designs and quality to repose confidence in the electric mobility that is going through such a robust growth path,” he added.
Ather Energy’s Chief Business Officer, Ravneet S. Phokela, stated that the company’s highest-ever monthly sales of 3,779 electric scooters occurred in April 2022. Due to severe supply chain issues, including component shortages, the number of delivery is a fraction of the pre-orders.
EV Registration in India: Negative impact of fire incidents
Despite the great development potential for electric two-wheelers, industry analysts warn that fires could have a detrimental influence on the burgeoning market.
“Recent fires have the potential to discourage new users to buy electric vehicles, who may now become more cautious and aware of the potential challenges. However, to quell these fears, the government should publicly share the key reasons for the fire incidents and penalise OEMs in case the batteries did not meet the necessary quality standards,” Rishabh Jain, Programme Lead, CEEW-CEF
“Also, the testing and certification mechanism of batteries may be revisited based on the finding from the investigation of fire incidents. Awareness campaigns by OEMs and government agencies on best practices of electric vehicle usage should also be carried out,” he added.
In April 2022, total electric car registrations totaled 2,659 units, a decrease of 26% month over month but a 345 percent increase year over year. While Tata Motors has been driving E-car sales (accounting for 87 percent of registrations last month), BYD, Audi, and BMW all saw an increase in sales throughout the month.
According to CEEW-CEF research, total electric three-wheeler registration was at 21,043 units, including 19,461 units of e-rickshaws, 700 units of passenger vehicles, and 812 units of cargo vehicles.