India Electric Two-Wheeler Market Assessment, By Vehicle type [Electric Motorcycle, Electric Scooter], By Type of Battery [Lithium Ion, Lead Acid], By Battery Technology [Removable, Non-Removable], By Distribution Channel [Original Equipment Manufacturers

India Electric Two-Wheeler Market Assessment, By Vehicle type [Electric Motorcycle, Electric Scooter], By Type of Battery [Lithium Ion, Lead Acid], By Battery Technology [Removable, Non-Removable], By Distribution Channel [Original Equipment Manufacturers (OEMs), Dealers and Distributors], By Region, Opportunities, and Forecast, FY2017-FY2031F

India Electric Two-Wheeler Market is forecast to grow at a CAGR of 40.34% during the forecast period between FY2024-FY2031 and was valued at USD 1.16 billion in FY2023. Being one of the largest two-wheeler marketplaces in the world, India’s electric two-wheeler market is driven by rising environmental concerns among consumers, government schemes offering rebates and subsidies on usage of electric vehicles to promote reduced carbon emissions.

A shift towards electric mobility has become essential in India to control the adverse environmental impacts which is being caused by the increasing vehicles on the road. Electric two-wheelers are small, self-propelled vehicles that run on either a rechargeable battery or an integrated electric motor. They are an environmentally friendly replacement to other forms of transportation since they are lightweight, adaptable, durable, affordable, fuel-efficient, and fuel-efficient. The compact electric two-wheelers are becoming more popular since they make it possible to travel short distances faster and avoid traffic bottlenecks.

Environmental Consciousness coupled with Social Influence

Fossil fuels like, diesel, petrol and natural gas are used for transportation, carbon dioxide (CO2) is released into the atmosphere, compromising both human health and the environment. Electric vehicle (EV) production and promotion are significant steps in this approach. They lead to less noise pollution, zero carbon emission, better air quality, and overall fuel savings. Indian population is becoming highly conscious of the environmental concerns and switching to eco-friendly modes of transport, including electric two-wheelers. Moreover, India being a highly social nation, influence from peer, family members, celebrities and social media adds to the adoption preferences of buyers in the country.

Government scheme

By providing subsidies for the purchase of electric vehicles, the government of India is helping the industry grow at a faster pace. In line with this, these incentives have increased the consumer acceptability of battery-powered scooters and motorbikes. Tax deductions, purchase reimbursements, and financial incentives are some supportive initiatives for EV buyers. As a result, the government is offering subsidies through the FAME II (Faster Adoption and Manufacture of EV’s) scheme and separate state EV policies to encourage the adoption of electric vehicles more quickly.

Impact of COVID-19 on India Electric Two-Wheeler Market

The pandemic had an impact on the public's health and initiated an economic crisis globally. The pandemic had a significant impact on production and the supply chain. Due to restrictions the Indian government imposed on imports coming from China, the supply of lithium-ion batteries was affected, which led to stagnating sales of electric two-wheelers. All automobiles’ sectors, including factories, showrooms, and workshops, were closed, resulting in a massive drop in overall production and sales of automobiles. In addition to taking opportunity of the demand, two-wheeler EV manufacturers are now expecting an increase in sales following the lockdown, claiming that their vehicles are now more cost-effective and acceptable for commuting within cities.

Key Player Landscape and Outlook

Factors such as intensified competition, rising demand for two-wheeler, environmental sustainability, and globalization result in major challenges for vehicle production to sustain in the industry. Wide range of companies are involved in the development and manufacturing of Electric Vehicles to stay ahead of the competition and are making significant investments in R&D projects to introduce new products and increase production capabilities.

When Ola Electric launched its Electric two-wheelers, it immediately rose to the top of the list of the most popular Electric vehicle brands in India. Ola Electric, which is supported by several well-known investors, delivers electric automobiles to clients' houses instead of through conventional dealerships. In 2022, Hero Electric, India's first producer of electric two-wheelers, sold more than 100 thousand e-scooters and aims to sell over five million electric vehicles in coming three years.