According to a report by TechSci Research, the India electric two-wheeler market is projected to reach USD 1,028.04 million by 2028, growing at a compound annual growth rate (CAGR) of 29.07%.
This substantial growth is driven by the increasing adoption of electric vehicles (EVs), technological advancements, and government policies supporting the transition to cleaner transportation alternatives. This report provides a comprehensive overview of the current state and future potential of the electric two-wheeler market in India, including key growth drivers, market challenges, technological developments, and competitive landscape.
India Electric Two-Wheeler Market Overview
The electric two-wheeler market in India has gained significant momentum in recent years, largely due to rising environmental concerns, improved consumer awareness, and increased government support.
The focus on reducing air pollution, curbing carbon emissions, and decreasing dependency on fossil fuels has accelerated the shift toward electric mobility. Additionally, the affordability of electric two-wheelers, combined with the financial incentives provided by the government, has made these vehicles more accessible to the average consumer.
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Key India Electric Two-Wheeler Market Segments
The market for electric two-wheelers in India is segmented based on vehicle type, battery type, voltage capacity, battery capacity, range, region, and company.
1. Vehicle Type
The Indian electric two-wheeler market can be categorized into scooters/mopeds and motorcycles. Currently, the electric scooter/moped segment dominates the market, holding a significant share. However, the motorcycle segment is expected to experience rapid growth, projected to grow at a CAGR of 47.72% by 2028. The increasing demand for high-performance electric motorcycles is likely to drive this growth.
2. Battery Type
Lithium-ion batteries dominate the Indian electric two-wheeler market, holding more than 90% of the total market share. These batteries are preferred due to their high efficiency, longer life cycle, and better overall performance compared to traditional lead-acid batteries. Lithium-ion batteries also contribute to the zero-emission goals of electric vehicles. This trend is expected to continue in the coming years as more companies adopt advanced battery technologies.
3. Voltage Capacity
In terms of voltage capacity, the 48-59V segment currently holds the majority of the market share, representing nearly 70% of the total market. This voltage range is popular due to its ability to offer a balance between performance and affordability, making electric two-wheelers more accessible to Indian consumers.
4. Battery Capacity
The <2 kWh battery capacity segment leads the market, followed by the 2-2.5 kWh segment. Smaller battery capacities allow for lower costs, aligning with consumer expectations in price-sensitive markets like India. However, as technology improves, there may be a gradual shift towards higher battery capacities to increase the vehicle’s range and performance.
5. Vehicle Range
In terms of range, the 50-100 km per charge segment has the highest market share, followed by the 101-150 km per charge segment. With advancements in battery technology, the range of electric two-wheelers is expected to increase, making them more suitable for longer commutes.
Key Growth Drivers of India Electric Two-Wheeler Market
1. Rising Pollution Concerns
One of the primary factors driving the growth of electric two-wheelers in India is the increasing concern over pollution caused by internal combustion engine (ICE) vehicles. As urban centers struggle with poor air quality, there is a strong push towards the adoption of electric vehicles to reduce harmful emissions.
2. Government Support and Incentives
The Indian government has implemented several policies aimed at promoting electric mobility. The FAME II (Faster Adoption and Manufacturing of Electric Vehicles) scheme provides subsidies for electric vehicles, making them more affordable for consumers. In addition, various state-level electric vehicle policies further incentivize the adoption of electric two-wheelers by offering rebates, tax incentives, and infrastructure development for charging stations.
3. Increasing Per Capita Income
India has seen a rise in per capita income, which has translated into greater purchasing power for its citizens. As a result, more people can afford electric vehicles, including two-wheelers, which are seen as both cost-effective and environmentally friendly alternatives to traditional ICE vehicles.
4. Low Operating Costs
Electric two-wheelers have lower operating costs compared to their ICE counterparts. Since electric vehicles have fewer moving parts, they require less maintenance and servicing. Additionally, the cost of electricity for charging is lower than the cost of petrol, leading to overall savings for consumers.
5. Technological Advancements
The electric two-wheeler market in India has benefited from continuous research and development efforts by both established companies and new players. Improvements in battery technology, motor efficiency, and vehicle design have made electric two-wheelers more competitive in terms of performance, range, and affordability.
Market Challenges
Despite the positive outlook, the electric two-wheeler market in India faces several challenges that may hinder its growth.
- High Initial Cost
One of the significant barriers to the widespread adoption of electric two-wheelers is the high upfront cost. While electric vehicles are cheaper to operate, they typically cost between 35% and 50% more than ICE vehicles. This price difference can deter potential buyers, especially in a price-sensitive market like India.
- Limited Charging Infrastructure
The lack of adequate charging infrastructure is another challenge faced by the electric two-wheeler market. Although efforts are being made to expand the charging network across the country, the current infrastructure is insufficient to meet the growing demand for electric vehicles. Long charging times also pose a significant disadvantage when compared to the quick refueling times of traditional ICE vehicles.
- Limited Awareness and Consumer Perception
There is still limited awareness among Indian consumers regarding the benefits of electric vehicles. Many potential buyers are hesitant to switch from ICE vehicles to electric ones due to concerns about performance, range, and battery life. Additionally, the perception that electric two-wheelers are not suitable for long distances or high-speed travel is a deterrent for some buyers.
Government Initiatives and Policy Support
Government policies have played a crucial role in the growth of the electric two-wheeler market in India. The FAME II scheme provides subsidies to manufacturers and consumers, making electric vehicles more affordable. In addition, various state governments have implemented their own EV policies, offering incentives such as tax rebates, reduced registration fees, and access to charging infrastructure.
The Indian government has also been actively promoting the development of EV charging infrastructure across the country. Public and private sector partnerships are being encouraged to set up charging stations in key urban areas, which will be essential for the widespread adoption of electric vehicles.
Competitive Landscape of India Electric Two-Wheeler Market
The Indian electric two-wheeler market is highly competitive, with several key players contributing to its growth. Both established manufacturers and new entrants are investing heavily in research and development to improve their product offerings and expand their market share.
Major Players in the Market
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Hero Electric Vehicles Pvt. Ltd.
- One of the leading players in the electric two-wheeler market, Hero Electric offers a wide range of electric scooters and has a strong distribution network across India.
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Okinawa Autotech Pvt. Ltd.
- Okinawa is known for its high-performance electric scooters and has gained popularity due to its advanced features and affordable pricing.
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Greaves Electric Mobility Pvt. Ltd.
- A subsidiary of Greaves Cotton, this company focuses on electric mobility solutions and has seen significant growth in the electric two-wheeler segment.
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Ather Energy Pvt. Ltd.
- Ather Energy is a key player in the premium electric scooter segment, known for its innovative design and technology, including smart connectivity features.
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Ola Electric Technologies Pvt. Ltd.
- Ola Electric has made a major entry into the electric two-wheeler market with its popular S1 and S1 Pro models, focusing on high performance and affordability.
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TVS Motor Company
- TVS has been a traditional player in the two-wheeler market and has recently expanded its portfolio to include electric scooters like the TVS iQube.
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Revolt Intellicorp Pvt. Ltd.
- Revolt Intellicorp is known for its electric motorcycles, offering innovative features like AI-powered systems and battery-swapping options.
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Bajaj Auto Ltd.
- Bajaj Auto has ventured into the electric two-wheeler space with its Chetak electric scooter, blending traditional design with modern electric technology.
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Benling India Energy & Technology Pvt Ltd.
- Benling India is a growing player in the market, offering affordable electric scooters with a focus on high efficiency and low maintenance costs.
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India Electric Two-Wheeler Market Future and Opportunities
The future of the electric two-wheeler market in India looks promising, driven by strong government support, technological advancements, and shifting consumer preferences towards eco-friendly transportation. With the expected expansion of charging infrastructure, improvements in battery technology, and greater affordability of electric vehicles, the market is set for substantial growth.
Investment and Collaboration
In the coming years, the market is likely to see more investment and collaboration between companies to develop innovative solutions that cater to the specific needs of Indian consumers. This includes efforts to reduce the cost of electric two-wheelers, improve battery efficiency, and enhance vehicle range.
Focus on Green Energy and Sustainability
Electric two-wheelers are expected to play a significant role in India’s transition to a greener, more sustainable transportation system. As the country continues to prioritize renewable energy sources and reduce its carbon footprint, the electric two-wheeler market will benefit from these broader environmental goals.
Conclusion
The India electric two-wheeler market is poised for rapid growth, supported by strong government policies, technological advancements, and increasing consumer demand for clean and affordable transportation solutions.
While challenges such as high initial costs and limited charging infrastructure remain, the market’s future looks bright, with numerous opportunities for innovation and expansion.
As more companies enter the market and invest in electric mobility, India’s transition towards electric two-wheelers is likely to accelerate in the coming years.
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