While recent fires on electric two-wheelers have impacted demand for these vehicles, the impact is likely to last only a month or two, said Vinkesh Gulati, president of the Federation of Automobile Dealers Associations (FADA).
“EV research levels have dropped,” Gulati said in an interview with CNBC-TV18.
“You will see understated retail happening for at least a month or two, but this phenomenon won’t last long. I have a feeling that when things like this happen, the customers are surprised… and in a month or two things disappear,” he said.
Gulati’s comments come after recent data from VAHAN, the national registry for e-services, showed that electric two-wheeler registrations fell 20 percent in May to 39,339 from April.
While sales of electric vehicles had risen significantly this year, the numbers of top e-scooter companies such as Ola, Hero Electric and Okinawa saw a significant drop in May due to two main reasons: vehicles that caught fire and a shortage of semiconductor chips.
|Electric Scooter Co||May ’22||Apr ’22||Difference YoY||% grow||% share May ’22|
The FADA president said the semiconductor problem has been largely resolved.
While EV sales have fallen, the demand for internal combustion engine (ICE) vehicles has risen. However, according to Gulati, the two are not comparable.
“These are two different phenomena we are seeing, but in general the ICE cars are on the rise and the order book is increasing month by month,” he said, adding that he expects June to be the best month for sales. of private vehicles.
Multiple fires on electric two-wheelers in the past two to three months have raised concerns about the safety of these vehicles.
Following reports of cell and battery defects, the government is working on stricter standards for EVs.
“The problem with EVs catching fire is in the battery, not in the car or bike,” said Sohinder Singh Gill, CEO of Hero Electric Motors, adding that the incidents have become a global phenomenon.
Gill added that these issues should be addressed transparently and companies should be proactive in taking security measures.
“Tata incident was a rare case,” Gulati said, adding that the problem that may have caused the accident could be external. However, he said the cause could not be determined until after a report from the government or Tata.
First print: June 24, 2022, 13:55 IST