India Electric Scooters and Motorcycles Market by Product (Scooter, Motorcycle), by Battery Type (Sealed Lead Acid, Lithium-ion), by Voltage (36V, 48V, 60V, 72V), by Technology (Plug-in, Battery) – Market Size, Share, Development, Growth, and Demand Forecast, 2013-2025

India Electric Scooters and Motorcycles Market Overview

The Indian electric scooters and motorcycles market is projected to reach 757,900 units by 2025, registering a CAGR of 42.9% during the forecast period. The market has witnessed significant growth in the recent past owing to strict norms and regulations pertaining to environmental, government incentives, and rising environmental awareness.

On the basis of product, the electric scooters and motorcycles market has been categorized into scooter and motorcycle. Of the two, the volume sales of scooters were higher in 2017, accounting for more than 95% market share. However, motorcycle is expected to be the faster growing category during the forecast period, owing to its higher engine capacity and speed, and higher engine capacity.

Based on battery type, the electric scooters and motorcycles market has been categorized into sealed lead acid (SLA) and lithium-ion (Li-ion). Among these, the SLA battery has been accounting for higher volume sales. However, the Li-ion category is poised to grow at a faster rate during the forecast period, owing to its declining prices, and lower environmental risk and longer life span as compared to the SLA category.

The technology segment of the India electric scooters and motorcycles market, is further classified into plug-in and battery. Between these two, plug-in was the dominant category, accounting for more than 95% volume sales share in 2017. However, battery is expected to record faster growth during the forecast period, owing to the emergence of battery swapping technology and associated convenience.

India Electric Scooters and Motorcycles Market Dynamics

Growth Drivers

The electric scooters and motorcycles market is primarily driven by strict emission norms and regulations, government incentives, and growing environmental awareness. The emissions from the conventional gasoline based vehicles cause environmental degradation. In order to address this issue, the government has been instituting various measures for regulating carbon emissions, thereby indirectly driving the sales of electric scooters and motorcycles in the country. Moreover, the government also extends its support for these vehicles in the form of subsidies, thus, promoting the adoption of these vehicles, as ‘good replacement’ of old conventional ones. Also, the related environmental protection agencies are concerned about the declining air quality and environmental degradation, and are therefore, organizing environmental awareness campaigns to herald a change towards sustainability.

Restraints

Inadequate charging infrastructure coupled with the circulation of sub-standard products in the local market causes a slow-down in the growth of the electric scooters and motorcycles market. At present, the charging stations in India are very less and mainly restricted to shopping malls. Increasing the number of charging stations at a sufficient scale would require public and private funding and considerable time, which would slow down the sales of plug-in electric two-wheelers.

In the last few years, small companies have entered the electric two-wheeler market with substandard products. Most of these companies have no prior experience in manufacturing automobiles. Apart from hampering replacement sales of electric two-wheelers, the sub-standard products have also adversely affected the consumer perception of electric two-wheelers in general, thereby restraining the growth of the electric scooters and motorcycles market in India.

India Electric Scooters and Motorcycles Market Competitive Landscape

Some of the key players in the Indian electric scooters and motorcycles market are Hero Electric Vehicles Pvt. Ltd., Electrotherm (India) Ltd., Avon Cycles Ltd., Ampere Vehicles Pvt. Ltd., and Lohia Auto Industries.