TVS Motor inches closer to Ola in electric two-wheeler market

In the electric two-wheeler (e-2W) segment, the gap between TVS Motor Co. Ltd and Ola Electric Technologies Pvt. Ltd in terms of retail market share is getting smaller. Vahan data on vehicle registrations show that TVS came in second with 19.5% of the market in March, while TVS came in first with 24.8%.

This is the second time in a row that Ola’s market share has gone down. Kumar Rakesh, an analyst at BNP Paribas Securities India, says that Ampere Vehicles gained the most in volume share in March, while Ola lost the most. In a report from April 10, Rakesh said that this is probably why Ola cut its prices. At the end of FY23, Ola cut the price of the S1 Pro electric scooter by 5,000. But this is only good until April 16.

On the other hand, TVS’ share of the market went up for the sixth month in a row in March. The company’s iQube electric scooter keeps getting more and more popular. iQube made up 5% of TVS’s two-wheeler wholesale volume in the March quarter (Q4FY23), which was up from 3.5% in Q3.

“This is a sign that consumers trust the brands they already have, as buyers of electric cars want better quality and dependability. There is a chance that TVS will pass Ola in terms of market share in the next few years if the current trend keeps going “said Varun Baxi, an analyst at Antique Stock Broking.

In March, nearly 6% of the two-wheeler market was made up of e-2Ws. This was the highest share of e-2Ws in FY23. This means that FY24 is off to a good start.

For FY23, the number of e-2W users rose by about 260 basis points from the previous year to 4.5%. As companies make their existing products bigger and launch new ones, there are still ways to make them better.

“We think that the delivery of the Ola S1 Air in July and Honda’s release of two electric two-wheeler models in FY24 will be the next good things for e-2W sales and mix,” “The BNP Paribas report said that.

Eventually, when government incentives end, the price could make it hard for people to buy, which could hurt demand. So, it will be important to see how the e-2W market changes after this.

Bajaj Auto Ltd and Hero MotoCorp Ltd, which are also listed, don’t have a big share of the e-2Ws market right now. For investors in the stocks of these two companies, a rise in traction would be a very important sign. One thing that has made investors feel better about TVS is that it is getting a bigger share of the e-2W market. TVS stock is close to its 52-week high of 1176.90 per share, which was reached in October.

Source: team currencyveda