India Electric Two-Wheeler Market All Set to Flourish: Expected to Reach Worth USD 360.3 Million in 2027
Published | March 2021
According to a study conducted recently by the strategic consulting and market research firm, BlueWeave Consulting, the Indian electric two-wheeler market was worth USD 64.5million in 2020 and is further projected to reach USD360.3 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 vehicles in the market. Additionally, the market is primarily driven by strict emission norms/regulations, government incentives, and increasing environmental awareness.
Stringent Emission Norms Expected to Benefit the India Electric Two-Wheeler Market
The electric two-wheeler market is mainly driven by stringent pollution norms, government incentives, and rising climate change awareness. Since the emissions from conventional gasoline-based vehicles cause environmental degradation, the Indian government, therefore, has initiated various measures for regulating carbon emissions, which is indirectly driving the sales of electric scooters and motorcycles in the country. Moreover, 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. An average electric two-wheeler provides a lifetime savings of 1.98 tonnes of carbon emissions as compared to an average petrol two-wheeler, which is equivalent to planting 11 trees."
Launch of Different Initiatives by Government Augmenting the Market Growth
The Indian electric two-wheeler market is rising rapidly as a result of government funding and incentives under the country's "FAME India" schemes, which encourage faster adoption of electric two-wheelers. The electric two-wheeler market in India is projected to prosper more in the coming years as the market anticipates a more conducive climate for the growth of the electric two-wheeler industry under "FAME-II."According to the new standards (FAME II), battery-powered scooters and motorcycles with a minimum range of 80 km and a top speed of 40 km/h is eligible for the subsidy. The new standards are expected to significantly boost the segment. Over the projected period, the Indian electric two-wheeler market is expected to be propelled by the rising number of electric two-wheeler manufacturers and their rising emphasis on research and development to produce technologically advanced and affordable electric two-wheelers.
48V by Voltage Type Dominate the India Electric Two-Wheeler Market
Since 48V electric two-wheeler vehicles are stable and cost-effective, such vehicles have gained maximum traction in the Indian electric two-wheeler industry. Because of their high current power, 48V batteries are the safest and most cost-effective choice. Moreover, low-power dissipations provide excellent efficiency and guarantee high reliability and long service life, besides increasing their market penetration. Owing to these factors, electric two-wheelers are in high demand in different sectors, including the automotive, industrial, and communication industries. Moreover, as emission regulations are becoming more stringent, manufacturers are now shifting their focus to low and medium-range electric vehicles. The shift of consumers toward low-cost and medium-range electric vehicles is expected to influence the demand for 48 voltage batteries during the forecast period.
India Electric-Two Wheeler Market: Regional Insights
India electric two-wheeler market is segmented into Eastern India, Northern India, Southern India, and Western India. Southern India caters to the largest share in the market followed by Northern India. These two regions are growing due to the rising technological advancement and infrastructure projects in India's electric two-wheeler market. The “Switch Delhi’ campaign was launched by Delhi’s Chief Minister, Mr. Arvind Kejriwal for promoting electric vehicles in the city. Additionally, monetary incentives are likely to be offered to people who switch to electric two-wheelers in the city, as a result of which North India dominates the Indian electric two-wheeler market.
Impact of COVID-19
The COVID-19 pandemic has posed a significant threat to India's electric two-wheeler market, as the production of electric two-wheelers has been hampered as a result of the lockdown. For a market that is trying to strengthen its position in the industry, COVID 19 came as a severe blow. Moreover, major auto manufactures were also impacted by this communicable disease. Nevertheless, the launch of BS-VI standards has created ample opportunities for electric two-wheelers said the pandemic. Since BS-VI cuts down tailpipe emissions, they emit less heat and produce less noise compared to conventional vehicles. Investing in an electric two-wheeler 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.
The leading players in the Indian electric 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 focusing on improving their services to attain a competitive edge over other players.
For example, YULU bike announced in June 2020 that they had raised more than USD 20 million in funding from key investors such as Bajaj Auto Ltd, Blume Ventures, 3one4 Capital, Wavemaker, and US-based Rocketship.The fresh investment amid the COVID-19 crisis validates the growth potential of the new-age mobility firms in the Indian market.
Don’t miss the business opportunity of the Indian electric-two wheeler market. Consult our analysts to gain crucial insights and facilitate your business growth.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of India’s electric two-wheeler market size, along with current trends and forecasts. The report promises to provide recent technology trends of the Indian electric two-wheeler market and industry insights to help decision-makers to make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online & offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost up the performance of your business solution. BWC has built its reputation from the scratches by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.