The sales of electric two-wheeler could miss the target of 10 lakh units in 2022-23 by 20 per cent, due to the withholding of around Rs 1,100-crore subsidy by the government, according to industry body SMEV.

In 2022, the sales of electric two-wheelers stood at around 6 lakh units, with three major electric two-wheeler (E2W) makers — Hero Electric, Ola and Okinawa — crossing the 1 lakh annual sales mark for the first time, the Society of Manufacturers of Electric Vehicles (SMEV) said in a release.

These original equipment manufacturers (OEMs) dominated the E2W market, controlling over 50 per cent of the total market share, and emerged as the top players in the category.

Though the E2W industry performance in the calendar year 2022 looks positive with sales of around 6 lakh units, “the volumes are not keeping up with the projections made by Niti Aayog and many other research agencies”, SMEV said.

“December has raised a red flag for the industry as it has witnessed a 28 per cent dip in sales,” it added.