iQube, keeps gaining popularity. iQube made up 5% of TVS’ total two-wheeler wholesale volume in the March quarter (Q4FY23), up from 3.5% in the previous quarter.
In the electric two-wheeler (e-2W) sector, TVS Motor Co. Ltd. is steadily closing the retail market share gap with Ola Electric Technologies Pvt. Ltd. According to data from Vahan vehicle registration, the latter now retains the top spot with a market share of 24.8% in March, followed by TVS’ 19.5%.
The market share of Ola has decreased for the second time in a row. According to Kumar Rakesh, an analyst at BNP Paribas Securities India, Ampere Vehicles saw the most volume share growth in March, while Ola experienced the largest loss. According to Rakesh in a report on April 10, “this is most likely the cause of Ola’s price reduction.” At the conclusion of FY23, Ola reduced the cost of the S1 Pro electric scooter by INR 5,000. This, however, is only good through April 16.
The market share of TVS, on the other hand, increased in March for the sixth time in a row. Its electric scooter, iQube, keeps gaining popularity. iQube made up 5% of TVS’ total two-wheeler wholesale volume in the March quarter (Q4FY23), up from 3.5% in the previous quarter.
“This is a sign of consumer confidence in the incumbent brands as the electric vehicle customer looks for better quality and reliability. There is a possibility of TVS overtaking Ola in terms of market share in the medium term provided the ongoing momentum sustains,” Varun Baxi, an analyst at Antique Stock Broking, said.
The overall market share of electric two-wheelers was close to 6% in March, the highest level since FY23. This suggests a successful start to FY24.
E-2W penetration increased to 4.5% in FY23, up roughly 260 basis points from the previous year. As businesses expand their current goods and introduce new ones, there is still potential for improvement.
“We view Ola S1 Air’s delivery, starting in July, and Honda launching two electric two-wheeler models in FY24 as the next positive catalysts for e-2W sales and mix,” the BNP Paribas report said.
As soon as government subsidies end, demand may suffer as a result of the rising cost of living. Therefore, it’s important to pay attention to how the e-2W industry develops after this.
Bajaj Auto Ltd. and Hero MotoCorp Ltd., two other listed incumbents, currently don’t own a sizable market share in e-2Ws. An essential catalyst for investors in the equities of these two firms would be an increase in traction. One factor that has helped investor emotions in the case of TVS is its growing presence in the e-2W market. The TVS stock is gradually edging closer to its October 52-week highs of INR 1176.90 per share.
Keyword: TVS Motor inches closer to Ola in E2W market as iQube becomes more popular