March 2021
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india electric two wheeler market
India Electric Two-Wheeler – Industry
Trends & Forecast Report 2027
The Indian electric two-wheeler market was worth USD 64.5 million in 2020 and is further projected to reach USD 360.3 million by 2027, at a CAGR of 27.6% during the forecast period (2021-2027). The growing concern over air pollution is pushing the automobile industry to reduce its carbon footprint, bolstering the need for electric cars on the market. Additionally, the market is primarily driven by strict emission norms/regulations, government incentives, and increasing environmental awareness. The government also extends its support to electric two-wheelers through subsidies, thus, encouraging the adoption of these vehicles as a ‘good replacement’ of the conventional ones.
Source: BlueWeave Consulting
India Electric Two-Wheeler
Overview
An electric two-wheeler comes with an electric motor instead of an internal combustion engine (ICE). It generates
power by burning a mixture of fuel and gases. One of the most unique features
of electric two-wheelers is that they can be plugged in by the driver to charge
from an off-board electrical power source. This property differentiates
electric two-wheelers from hybrid electric vehicles, which have an internal
combustion engine and an electric motor that consumes energy contained in
batteries. However, the hybrid vehicle cannot be charged by plugging it in.
India has a sizable
two-wheeler market and the fact that these vehicles can help reduce pollution is
likely to benefit India’s electric two-wheeler industry. Additionally, government
initiatives, such as incentives for the purchase of electric vehicles, have
made electric two-wheelers a more appealing choice than two-wheelers running on
fuel.
India Electric Two-Wheeler
Forecast and Trend
Growth Drivers
Growing Concerns Over Environmental
Pollution
On the Environmental Pollution Index, India is among the bottom five
countries in the environmental health category. As far as air quality is
concerned, India’s CO2 emissions rate is increasing every year owing to the
emission of toxic gases by fuel-based vehicles. The Government of India is now
focusing more on EVs such as two-wheeler vehicles and introducing policies such
as FAME 1 and FAME 2. These initiatives would help improve air quality besides
favoring the market during the forecast period. Furthermore, the fact that an
electric two-wheeler has lower maintenance and running costs than an internal
combustion engine vehicle will propel the industry forward in the coming years.
Heavy Investments from
Automakers in Electric Two-Wheeler
The rising demand for India's electric two-wheeler market is expected to
be fueled by heavy investments from automakers. Big companies like Hero
Electric Vehicles Pvt. Ltd., Lohia Auto Industries, Electrotherm (India) Ltd,
and others are investing huge money in the EV market by launching new, cheap,
and affordable two-wheelers.Over the forecast period, the Indian electric
two-wheeler market is expected to be driven by the rising number of electric
two-wheeler manufacturers and their increasing emphasis on research and
development to produce technologically advanced and affordable electric
two-wheelers.
Restraints
Lack of Standardization of
Charging Infrastructure
One of the biggest restraints for the
success of deploying the electric two-wheelers in India is the lack of adequate
charging infrastructure. India's electric vehicle charging infrastructure is
still in its infancy. It is yet to catch up to meet the country's needs, which
is seriously impeding the adoption of electronic vehicles in the country. The land
proposal is a major challenge in any metro city as charging stations need
reserved space not just for the setup, but also for parking spaces so that
multiple vehicles can park and use the charging station. These are a few
factors hindering the growth of the electric two-wheeler market in India.
Impact of COVID-19
The COVID-19 pandemic has posed a major
threat to India’s electric two-wheeler market as demand has been hampered as a
result of the lockdown. For a market that is trying to strengthen its position
in the industry, the COVID-19-infused lockdown was a severe blow. Moreover,
major auto manufacturers were also impacted by this communicable disease. However,
the launch of BS-VI standards has created ample opportunities for electric
two-wheelers amid the pandemic. Since BS-VI cuts down tailpipe emissions, they
emit less heat and produce less noise compared to conventional vehicles. Investing
in electric two-wheelers is likely to help in retaining air quality and lower
health risks in communities. We have already entered the post-pandemic era;
consumers now feel safer and protected to travel in their own vehicles so the
demand for private vehicles is increasing, thus, creating significant opportunities
in the electric two-wheeler market.
India Electric Two-Wheeler Vehicle
Market: By Battery
Based on battery, the Indian electronic
two-wheeler market is categorized as lead-acid battery and Lithium-Ion-batteries.
Lithium-ion batteries have the highest market share because they are
lightweight, have improved protection, are chemically and thermally stable, are
more reliable, and are capable of fast charging. Because of these advantages, electric
two-wheeler manufactures are widely adopting lithium-ion batteries in electric
two-wheelers, which in turn is driving the growth of the lithium-ion battery in
this segment. Furthermore, lithium-ion batteries can last up to 10 years or
longer, based on how well they are maintained, attracting customers to purchase
electric two-wheelers besides fueling market development.
Indian Electric Two-Wheeler
Vehicle Market: By Vehicle Type
Based on the vehicle type, the Indian
electric two-wheeler is segmented into EV scooters and motorcycles. The scooters hold the largest share among the
two vehicle types. EV scooters are expected to stay at the top as the trends
and volume of sales appear to favor two-wheeler EV scooters. The contributing factors for this growth in
the demand for EV scooters could be the rising subsidies granted by the
government for reduced use of conventional vehicles which have increased the pollution
levels in the past several years.
India Electric
Two-Wheeler Market: Regional Analysis
India electric two-wheeler market is segmented into Eastern
India, Northern India, Southern India, Western India wherein, Southern India
accounts for the highest share. Southern India is expected to be the largest
and fastest-growing market as many automotive industries are setting up their
manufacturing units in the Southern part of India. Bangalore is known as
Silicon Valley of India as many startups have established their business in Bangalore
due to friendly rules and regulations set up by the Government of Southern India,
which have attracted various manufacturers to set up manufacturing units, thereby
boosting the demand for electric two-wheelers in the region.
Competitive
Landscape
The leading players in India’s electronic two-wheeler
market are Hero Electric Vehicles Pvt. Ltd, Lohia Auto
Industries, Electrotherm (India) Ltd, Avon Cycles Ltd, Okinawa
Autotech Pvt. Ltd., NDS Eco Motors Private Limited, YULU, Ather
Energy, AMPERE VEHICLES, Revolt Motors, Hero Electric Vehicles Pvt. Ltd., and
other prominent players.
The Indian electric two-wheeler market is consolidated in
nature. The rise in government initiatives and programs for providing subsidies
has led to the rising demand for electric two-wheelers. In terms of
competition, many new players are expected to enter the market in the coming
years as the electric two-wheeler market is emerging rapidly. Moreover, the
market participants are continually focusing on improving their services to
attain a competitive edge over other players.
Recent Developments
·
In February 2021, the
Delhi Government announced its lofty target of registering 25% of all vehicles
in Delhi as electric vehicles by 2024. According to its EV policy 2020, the
government provides Rs.5000 per kWh of battery capacity per vehicle. However,
depending on the vehicle, this amount can go up to INR. 30,000.
·
In May 2020,
Okinawa announced that the company will launch a completely made-in-India
electric motorcycle. Apart from the battery cells, the electric motorcycle, called
Oki100 will be completely made in India and will be launched in the third
quarter of the current financial year.
Scope of the Report
Attribute |
Details |
Years Considered |
Historical data – 2017-2020 Base Year – 2021 Forecast – 2022 –
2027 |
Facts
Covered |
Revenue in USD Million |
Market
Coverage |
Eastern India, Northern India,
Southern India, Western India |
Product/Service
Segmentation |
By
vehicle type, technology, voltage, battery type, and region |
Key Players |
The key players for the electric
vehicle market are Hero
Electric Vehicles Pvt. Ltd., Lohia Auto Industries, Electrotherm (India)
Ltd., Avon Cycles Ltd., Okinawa Autotech Pvt. Ltd., NDS Eco Motors Private
Limited, Kawasaki, Ather Energy Pvt. |
By Vehicle Type
Ø Scooter
Ø Motorcycle
By Battery Type
Ø Lead Acid Battery
Ø Lithium-ion Battery
By Voltage
Ø 36V
Ø 48V
Ø 60V
Ø 72V and above
By Technology
Ø Plug-in
Ø Battery
By Region
Ø Northern
Ø Eastern
Ø Western
Ø Southern
FAQs:
1. What
will be the expected size of the Indian electric two-wheeler market in 2027?
Answer: The Indian electric two-wheeler market is expected to reach USD 64.5million in 2027.
2. What
are the major factors driving the growth of the Indian electric two-wheeler market?
Answer: The
major factors driving the growth of the Indian electric two-wheeler market are growing
concerns over environmental pollution and heavy investments from automakers in
electric two-wheelers.
3. Who
are the key players in the Indian electric two-wheeler market?
Answer: The key
players in the Indian electric two-wheeler vehicle market are Hero Electric
Vehicles Pvt. Ltd., Lohia Auto Industries, Electrotherm (India) Ltd., Avon
Cycles Ltd., Okinawa Autotech Pvt. Ltd., NDS Eco Motors Private Limited,
Kawasaki, Ather Energy Pvt., and other prominent players.
4. Which
battery type accounted for the largest share in the Indian electric two-wheeler
market?
Answer: Lithium-Ion accounted for the largest share in
the Indian electric two-wheeler market.
5.
Which region is expected to grow at a higher CAGR
during the forecast period?
Answer: Southern region is expected to grow at a
higher CAGRduring the forecast period.
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