India E2W Registrations Fall 16.2% in August

Electric two-wheeler (E2W) registrations in India fell by 16.2% month-on-month to 1.72 lakh units in August 2025, according to data from Vahan. This marks the second consecutive month registrations have dropped below the two lakh mark, declining from 2.05 lakh units in July, though they remain 64% higher than the 1.05 lakh units recorded in August the previous year. You can explore more industry stats.

Most leading original equipment manufacturers (OEMs) saw double-digit sequential declines. The slowdown follows a government decision to halve the incentive for registered E2Ws to ₹2,500 per kWh of battery capacity, capped at ₹5,000 per vehicle, for the period from April 1, 2025 to March 31, 2028. This compares to the previous incentive of ₹5,000 per kWh, capped at ₹10,000 per vehicle.

Market Leaders Maintain Positions

TVS Motor remained the market leader in August despite a substantial dip. Its registrations stood at 46,587 units, down about 17% from 55,823 units in July. During the month, its flagship iQube model crossed the one million cumulative customer milestone. TVS also launched a new 2.3 kWh iQube variant priced at ₹1.16 lakh and expanded its EV portfolio internationally into Kenya and Sri Lanka.

Bajaj Auto strengthened its position, closing the gap with TVS Motor. The company registered 45,861 E2Ws in August, taking its market share to 22.5%. Bajaj has ramped up Chetak's production capacity to 60,000 units per month and crossed the three lakh E2W sales mark in calendar year 2026, becoming the second EV maker after TVS to reach that milestone. The company is working on introducing new Chetak models and electric motorcycles. Check the latest standings for more details.

A Focus on Affordability

With more modest policy support, affordability is becoming a critical lever for adoption as manufacturers target the larger commuter segment. TVS Motors, Bajaj Auto, Ola Electric, and Ather Energy have all introduced variants priced below ₹1 lakh in recent months. The shift highlights a focus on practical range, lower running costs, and commuter-focused designs.

Hero MotoCorp recorded 17,432 units in August, down 24% from 22,989 units the previous month. The company has doubled its monthly EV production capacity to 30,000 units from 15,000 units at the end of the 2025-26 fiscal year. It plans a further 50% increase to 45,000 units by the end of the current fiscal. Separately, Hero increased its stake in Ather Energy to 32.8% through an investment of up to ₹1,758 crore.

Ola and Ather's Market Moves

Ola Electric, led by Bhavish Aggarwal, saw a 7.7% dip in registrations to 13,132 units in August from 14,226 units in July. Its market share, however, improved to 7.6% from 6.8%. The company is targeting the mass market with its new S1Z range, priced from ₹79,999. The scooters come with 3.1 kWh and 5.1 kWh battery options, with claimed ranges of up to 179 km and 301 km, respectively.

Amid the decline, Ola Electric secured a ₹95.81 crore incentive under the Ministry of Heavy Industries' Production Linked Incentive (PLI) scheme for advanced automotive technology products for sales in fiscal year 2026-27. The S1Z is also the company's first model to use its indigenously developed Bharat Cell LFP battery technology. The government has extended the timeline for Ola to meet its advanced chemistry cell manufacturing commitments under the ACC PLI scheme.

Ather Energy maintained a lead over its rival, recording 27,218 registrations in August, down 11% from 30,632 in July. The company launched a new e-scooter variant, the Konarc, in August priced at ₹99,999. It is Ather's first scooter built on its new EL platform. The company faces supply constraints with demand exceeding its existing production capacity. It is ramping up its manufacturing footprint, expecting its new AURIC facility to help bridge the gap. For more on specific models, see our squad page.