India's Electric Two-Wheeler Retail Sales Fall 13.4% in August as TVS and Bajaj Retain Top Spots

India’s electric two-wheeler market experienced a sequential contraction in August, with retail registrations falling 13.4% month-on-month to 1.78 lakh units from 2.06 lakh in July. Despite the monthly drop of about 27,560 registrations, the market recorded a 62.4% year-on-year growth compared to 1.10 lakh units registered in August last year, according to data matching figures projected by CRISIL Intelligence.

The monthly correction brought EV penetration down slightly to 10.6% from 11.2% in July, though it remained higher than the 7.7% recorded in August a year earlier. Analysts note that electric two-wheeler registrations grew at more than three times the rate of the overall two-wheeler market, which expanded by 17% year-on-year.

Company-Wise Performance

TVS Motor maintained its position as the market leader with approximately 48,150 registrations in August. However, it recorded the largest absolute volume loss among leading manufacturers, shedding about 7,700 registrations as retail sales fell 13.7% from 55,825 in July.

Bajaj Auto retained the second spot with about 40,060 registrations, declining roughly 12.7% sequentially from 45,861 vehicles. Despite the monthly drop, Bajaj’s performance reflected significant long-term growth, registering about 227% higher year-on-year compared to 12,246 electric two-wheelers in August last year. Concurrently, Bajaj’s conventional two-wheeler registrations fell 8.7% year-on-year, with electric models accounting for roughly 26% of its combined two-wheeler registrations for the month.

Ather Energy secured the third position with about 28,130 registrations, marking an 8.2% decline from 30,632 in July. Ather's contraction was substantially milder than the wider market average of 13.4%.

Hero MotoCorp observed the steepest percentage decline among major players. Its electric retail sales dropped 21.7% to roughly 18,010 units from nearly 23,000 in July, resulting in a loss of about 5,000 registrations.

Ola Electric recorded the smallest sequential drop among the top five firms, with retail sales slipping 4.6% to approximately 13,570 units from 14,226 in July.

Industry Perspectives

Industry participants pointed out that short-term monthly fluctuations do not alter the broader trajectory of electric vehicle adoption. Hemant Kabra, Founder and Managing Director of BGauss Electric, stated that consumer acceptance continues to strengthen as buyers receive broader product choices alongside lower running and ownership costs, pushing EVs into mainstream mobility.

CRISIL Intelligence attributed the sustained year-on-year expansion to favourable ownership economics, reduced operating costs, a developing charging ecosystem, and wider market availability of competitive models.

"The sequential drop in August retail registrations highlights the cyclical nature of the retail automotive market, but the strong year-on-year growth of over 60% indicates fundamental demand remains intact. Crossing the 10% penetration milestone demonstrates that electric two-wheelers are steadily transitioning into a mainstream category. For startups and incumbent manufacturers alike, sustaining this momentum will depend heavily on optimizing supply chains, enhancing product reliability, and addressing consumer financing needs as competition intensifies." — Dr. Shishir Gupta, Founder & CEO, StartupLanes