Report Overview

The India electric scooter market is growing at a high rate owing to the growing awareness of carbon emissions and footprints, as well as a trend away from traditional forms of transportation for shorter distance trips...

India Electric Scooter Market- Industry Trends & Forecast Report 2028

The India electric scooter market is anticipated to grow at the CAGR of 35% during the forecast period 2022-2028. The rapid rise of the electric scooter industry may be ascribed to a growing awareness of carbon emissions and footprints, as well as a trend away from traditional forms of transportation for shorter distance trips. In addition, government measures and monetary incentives to encourage the use of electric scooters are expected to promote market growth over the forecast period.

Electric Scooter - Overview

An electric scooter is a three-wheeled vehicle, which is powered by an electric motor and is designed to let the rider stand on it to operate. This vehicle is also capable of functioning with or without human propulsion. Electric scooter runs on a rechargeable battery which is stored onboard but also has variations of hybrid and fuel cell. The average range of a fully-charged electric vehicle is around 6 to 25 miles, with the exception of certain brands.

India Electric Scooter Market Forecast and Trends

Growth Drivers

Increasing Consciousness Towards Environment and Sustainability

The expansion of the electric scooter industry is expected to be fueled by rising levels of air and noise pollution, as well as a growing carbon footprint from gasoline cars. Electric scooters are gaining popularity as convenient short-distance commuters with a low to zero carbon footprint. These vehicles run entirely on electricity, resulting in zero direct emissions. Electric vehicle demand is expected to rise in the forecast period as people's awareness of the environment and sustainability grows, particularly among the younger demographic.

Favorable Government Initiatives and Incentives

Various state governments are taking steps and providing incentives to encourage the use of electric scooters on the roadways. Purchase refunds, tax exemptions, and tax credits are among the schemes and incentives, as are other benefits like access to bus lanes. Gujarat, for instance, is offering an incentive of INR 10,000 (approx USD 130) per kWh of battery capacity. Delhi is also granting a subsidy of INR 30,000 (approx USD 390) on electric two-wheelers.

Restraints

Lack of Charging Infrastructure in India

One of the greatest stumbling blocks for the whole electric vehicle sector, including electric scooters, is a lack of charging infrastructure. The range of electric scooters is limited, necessitating a regular recharge. There are only 1,640 operational public charging stations in India as of now, which is largely concentrated in metropolitan and larger cities such as Mumbai, Delhi, Surat, only. This might inhibit the broad adoption of electric scooters, damaging the entire market's progress.

Impact of COVID-19 on India Electric Scooter Market

The unexpected breakout of the COVID-19 epidemic hampered the expansion of the electric scooter market in India. During the COVID-19 period, the manufacture of electric scooters was prohibited because of a lockdown imposed by the government. Even after the lockdown was lifted and manufacturing began, the market faced a component scarcity owing to a lack of output. The pandemic, on the other hand, appeared to present chances for the electric scooter business in terms of increased environmental awareness and sustainability.

India Electric Scooter Market - By Product Type

Based on product type, the India electric scooter market is segmented into retro, standing/self-balancing, and folding. The retro group has the biggest market share because they are best for traveling shorter distances. The low cost of acquisition, as well as the low maintenance expenses associated with retro electric scooters, are attracting a large number of younger and working people, which is expected to drive market expansion during the projection period. The popularity of foldable electric scooters is also on the rise.

India Electric Scooter Market - By Battery Type

Based on battery type, the India electric scooter market is segmented into sealed lead acid, NiMh, and li-Ion. Because sealed lead-acid batteries provide more power and energy per KWH, they have the biggest market share. SLA batteries are also more dependable and have a longer life cycle, making them more cost-effective. However, because of its higher energy density, voltage capacity, and lower self-discharge rate, the Li-ion battery category is expected to grow at the fastest rate throughout the projection period.

India Electric Scooter Market - Regional Insights

Geographically, the India electric scooter market is segmented into North India, South India, East India, and West India. Western India accounts for the largest market share because of the favorable incentives the government of the states like Maharashtra and Gujarat offer. Maharashtra, for instance, offers an incentive of INR 5000 per kWh (approx USD 65.65) of their battery capacity while the maximum subsidy amount has been capped at INR 25,000 (approx USD 328). These incentives are promoting the use of electric scooters among consumers in West India.

Competitive Landscape

The leading market players of the India electric scooter market are Ather Energy, Revolt Motors, Bajaj Auto Yo-Bykes, Ampere, Tvs Motor Company, Hero Electric, Okinawa Autotech, Ultraviolette Automotive, Gemopia Electric, Ola Electric, Simple Energy, And Other Prominent Players.

With the existence of multiple global firms as well as small mobility startups, the market is tremendously fragmented. In terms of offers, regional entrepreneurs are giving tough competition to multinational corporations. Companies are working on growing their target market and extending outside geographical limits, thus they are introducing items in other nations. In addition, in this industry, competitive techniques such as partnerships, mergers, acquisitions, joint ventures, and so on are common.

Recent Development

• In March 2022, Hero MotoCorp, the leading motorcycle and scooter manufacturer, announced their upcoming EV venture ‘Vida - Powered by Hero’ and will unveil its first electric scooter by July.

Scope of the Report

By Product Type

• Retro
• Standing/Self Balancing
• Folding

By Battery Type

• Sealed Lead Acid
• NiMh
• Li-Ion

By Region

• North India
• South India
• East India
• West India