TVS Motor Continues to Lead the Electric Two-Wheeler Market

TVS Motor Company has maintained its lead in India’s electric two-wheeler (e2W) segment for the third consecutive month, according to the latest Vahan data. The Chennai-based automaker sold 23,472 units of its iQube electric scooter in June (till the 29th), accounting for a 25% share of the total e2W market.

The industry’s total electric two-wheeler sales stood at 95,605 units between June 1 and 29, slightly lower than May’s tally of 100,901 units, which was the second-highest monthly volume in 2025.

TVS Widens Lead Over Bajaj Auto with Robust Q2 Sales

TVS Motor surpassed Bajaj Auto in April 2025 to take the top position, driven by an expanding dealership network and a diversified product range. The company has held this leadership since, with quarterly iQube sales hitting 68,195 units, more than double the 33,660 units sold in Q1 FY25.

This surge underlines TVS’s strong market response and its successful strategy in scaling electric mobility in India.

Bajaj Auto Holds Strong at Second Place with 22% Market Share

Bajaj Auto remains in close competition, having sold 21,238 units of its Chetak e-scooter in June so far. This gives the Pune-based company a 22% share of the e2W market. Despite losing the top spot, Bajaj’s consistent volumes and brand strength keep it firmly in the race.

China’s Rare Earth Magnet Export Curbs May Disrupt EV Production

Despite strong sales momentum, the electric two-wheeler industry faces a looming supply chain crisis. Both TVS and Bajaj have flagged potential production cuts starting July 2025 due to China’s export restrictions on rare earth magnets—a key component used in EV motors and electronics.

“This EV supply chain disruption is certainly going to pose a short- to medium-term challenge,” said Sudarshan Venu, MD, TVS Motor.

Bajaj Auto’s Executive Director Rakesh Sharma also issued a warning, noting that production volumes could take a serious hit if the issue isn’t addressed swiftly.

Industry Groups Engaged with Government to Mitigate Risk

Leading auto industry bodies, including SIAM (Society of Indian Automobile Manufacturers) and ACMA (Automotive Component Manufacturers Association), are in discussions with the Indian government to seek solutions to the China export dependency, which currently accounts for over 90% of the world’s rare earth magnet supply.

The objective is to secure alternative sourcing and minimize the impact on domestic EV production.

Ola Electric Drops to Third with 18% Share Amid Decline

Once the dominant player, Ola Electric has slipped to third place in June with sales of 17,628 units, translating to an 18% market share—unchanged from May. This is a significant decline from its 46% market share in June 2024.

The company has faced headwinds due to quality issues, regulatory scrutiny, and customer service concerns, allowing legacy brands like TVS and Bajaj to gain ground.

Ather Energy Doubles Market Share with Rizta Success

Ather Energy continues its upward trajectory, selling 13,397 units in June and capturing a 14% share of the electric scooter market. This marks a doubling of its market share year-on-year, driven largely by the popularity of the Rizta family scooter and rapid retail expansion.

The company added 143 new stores in FY25, and claims it has the capacity to scale at a rate of two new outlets per day—positioning itself for further growth.

Hero MotoCorp Targets Budget Buyers with Upcoming VX2 Launch

Hero MotoCorp, another legacy two-wheeler player, also saw its market share double to 7% year-on-year, with 6,775 units sold in June. The company is set to intensify the competition with the launch of its new VX2 electric scooter under the Vida brand on July 1, 2025.

The VX2 is expected to be priced below the current starting price of ₹74,000 for the Vida V2, targeting budget-conscious buyers and further heating up the battle for leadership in the growing e2W market.