India’s Electric Vehicle Goals are filling by EV Two Wheelers rather than EV Four Wheelers

The growing trends of Electric Vehicles and Government EV targets will propel the Electric Two Wheeler Market in India.

India: Prime Minister Narendra Modi’s government has set a target of electric vehicles making up 30 percent of new sales of two-wheelers by 2030 from less than 1 percent today. It would also open up a new market for global companies like Japan’s Yamaha Motor and Suzuki Motor that are drawing up initial plans to launch electric scooters and motorcycles in the country. India as the world’s biggest market for scooters and motorcycles with annual domestic sales exceeding 19 million in the fiscal year ended March 31, 2018 – six times that of car sales over the same period.

In fiscal 2017-18, sales more than doubled to 54,800 from a year ago while electric car sales fell to 1,200 from 2,000 over the same period, according to data from the Society of Manufacturers of Electric Vehicles (SMEV). By 2030, sales of electric scooters are expected to cross 2 million a year. A handful of carmakers including Maruti Suzuki India Ltd, Toyota Motor Corp, and Nissan Motor Co are testing the ground to launch electric vehicles in the country, some as early as 2020. Japan’s Suzuki Motor is working on plans to launch an electric scooter in India by 2020, while Indian motorcycle makers Bajaj Motor and TVS Motor are also eyeing electric models. “India’s electric revolution will be led by two-wheelers. It is a value for money equation,” said Sohinder Gill- Global chief executive officer at Hero Electric, the country’s top-selling e-scooter manufacturer.

According to BlueWeave Consulting, Electric scooters make up a fraction of the total but are growing fast. Ather’s scooters (Bengaluru-based start-up Ather Energy) are connected to the internet, come with a touchscreen and have a top speed of 80 kph. They cost about Rs 1,31,000 – nearly twice the amount Gore paid. Okinawa (Indian electric two-wheeler manufacturing company) and Ather are both expanding their production facilities. While Okinawa is already building a new plant in northern India to more than treble its capacity to a million electric scooters a year, Ather is scouting for a site to set up its second plant. Ather, whose business model includes setting up charging stations in every city it launches, is working on new products ahead of plans to expend to 30 cities in the next three years.  Indian Electric Two-Wheeler market is growing significantly on account of government support and several subsidies under its “FAME India” schemes, which support faster adoption of electric two-wheelers in the country. Market anticipation about the more favorable environment for the development of electric two-wheelers industry under “FAME-II” is also expected to aid the electric two-wheeler market in India in the coming years. The increasing number of electric two-wheeler manufacturers in India and their escalating focus on research & development to manufacturing technologically advanced and affordable electric two-wheelers is further expected to drive the Indian electric two-wheeler market over the forecast period.

According to BlueWeave Consulting’s published report, Titled – India Electric Two-Wheeler Market, By  Vehicle Type (Scooter And Motorcycle), By Battery Type (Lead Acid Battery, Lithium-Ion Battery), By Voltage (36V, 48V, 60V, AND 72V), By Technology (Plug-In And Battery), By Region(North, South, East, West); Size AND Forecast, 2014-2025.

India Electric Two-Wheeler market is growing rapidly with a CAGR over 40% during the forecast period 2018-2025, owing to strict emission norms and regulations, government incentives, and increasing environmental awareness. The emissions from conventional gasoline based vehicles cause environmental degradation. The government has started various measures for regulating carbon emissions, thereby indirectly driving the sales of electric scooters and motorcycles in the country. Moreover, the government also prolongs its support for these vehicles in the form of subsidies, thus, encouraging the adoption of these vehicles, as ‘good replacement’ of old conventional ones.

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