Just a month after the government reduced the amount of subsidy provided on electric two-wheelers, Vahan portal data shows that EV sales have taken a massive hit.

On June 1, 2023, the government reduced the subsidy incentive cap from 40 percent of a vehicle's value to 15 percent and capped the subsidy to Rs 10,000 per kWh of battery.

While the government claimed that it is doing so to promote the incentive scheme and ensure that a larger number of people benefit from the Rs 10,000 crore allocated subsidy, manufacturers such as Ola, TVS and Ather had to increase the prices of their electric scooters.COMPANYJune 2023May 2023ChangeOla Electric17,57228,629-38.62%TVS Motor7,79120,397-61.80%Ather Energy4,54315,407-70.51%Bajaj Auto2,9669,965-70.24%Okinawa Autotech2,6162,907-10.01%Source: Vahan DashboardSales numbers across all five major electric two-wheeler brands in the country have seen a substantial dip in June 2023, when compared to May 2023.

Ola Electric saw a dip of 38.62 percent, with 17,572 units sold in comparison to the earlier month’s 28,629 units.

Sales of TVS EVs, on the other hand, fell by 61.80 percent and Ather Energy also took a massive hit in sales, 70.51 percent less than the 15,407 units it sold in May 2023.

Bajaj Auto EV sales also dropped by 70.24 percent and Okinawa Autotech saw the least amount of loss in sales with a 10.1 percent dip.With brands suffering up to 70 percent loss in sales numbers after seeing consistent growth year-on-year, it is quite clearly the impact of the revamped FAME-II subsidy.

Prices for Ola electric scooters were hiked by Rs 15,000 on average and Ather scooters got costlier by approximately Rs 32,500 among similar price adjustments within other manufacturers.

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