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News: According to media sources, existing 2-W players such as Bajaj Auto and TVS Motor are increasingly asserting their dominance in the electric two-wheeler segment. As of mid-September 2024, these companies, along with domestic motorcycle leader, collectively control nearly 48.4% of the electric two-wheeler market, a notable increase from 31.4% in May 2024. Bajaj Auto has recently surpassed TVS Motor in registrations, securing a 22.09% market share, while TVS holds 21%. This shift indicates that traditional players are effectively responding to competition from startups like Ola Electric, which has seen its market share decline to below 30%.
Views: Both Bajaj and TVS are expanding their electric vehicle portfolios and distribution networks, positioning themselves to meet the growing demand for electric mobility while capitalizing on their longstanding industry expertise. The introduction of new models in the sub-1-lakh segment has clearly worked for Bajaj auto which saw its market share based on VAHAN registration data increase from 11.6% in June 2024 to 19.3% in August. With policy clarity in terms of announcement of PM E-Drive (FAME-III) scheme, we expect EV penetration to pick up pace going forward.
Impact: Neutral