India Electric Two-Wheeler Market All Set to Flourish: Expected to Reach Worth USD 360.3 Million in 2027
Published | 16 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.
Competitive
Landscape
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.
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