Sales of electric two-wheelers in India is expected to fall 15-17pc in FY20-21, according to ICRA, an Indian rating agency that prepares various market reports.
The COVID-19 pandemic, economic uncertainties and health concerns in the country are main reasons for this potential drop.
India’s incentive scheme, FAME-II, was introduced to boost production and sales of electric vehicles (EVs) in three years from FY20. However, only 2pc of the original target has been achieved yet.
FAME-II had set a target of selling 1mn electric two-wheelers by the end of FY22. Sales were hurt by general slowdown in the economy related to the pandemic and the lockdowns. From March-September, wholesale of electric two-wheeler was down 38pc from the previous year.
The electric scooter segment was expected to penetrate faster compared to other segments of the automobile market, given the favorable economics and limited reliance on widespread charging infrastructure. But the scenario is different with tepid demand for electric vehicles in the country, the ICRA report said.