| Published | Report Code | Available Format | Pages |
|---|---|---|---|
| May 2019 | AT11193 | 228 |
India Electric Scooters and Motorcycles Market Overview
The Indian electric scooters and motorcycles market generated a revenue of $80.0 million in 2018, and it is expected to register CAGR of 36.3% during the forecast period. The growth of the market is attributed to the availability of supportive government subsidies, the rising concern towards the environment, as well as introduction of stringent emission norms.
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On the basis of technology, the Indian electric scooters and motorcycles market is categorized into removable and non-removable. The non-removable battery based electric scooters have accounted for the majority sales in the Indian market till now, and the market for removable battery-based electric scooters is negligibly small. It is expected that the share of removable battery based electric scooters would increase in the forecast period, owing to the greater convenience these vehicles offers.
Based on charging time, the Indian electric scooters and motorcycles market is categorized into <4 h, 4–6 h, and >6 h. Electric scooters and motorcycles with charging time less than 4–6 h dominated the Indian market in 2018, in terms of volume. However, the market of <4 h category is expected to witness the fastest growth, in terms of volume during the forecast period. This is attributed to the growing customer preference for electric scooters with shorter charging time.
Uttar Pradesh stood as the largest state in the Indian electric scooters and motorcycles market. The state is the largest market for motorcycles in India, and accounts for 15% of the total sales volumes, and the penetration of electric scooter and motorcycle is increasing in the state. Rising women users, specially in tier 2 and tier 3 cities, is also resulting in increased demand of electric scooter. The major OEMs are focusing to increase their share by expanding dealer networks in the state. Other prominent market for electric scooters in India are Maharashtra, West Bengal, Gujarat, and Tamil Nadu.
India Electric Scooters and Motorcycles Market Dynamics
Driver
The introduction of stringent emission control regulations is a major driver for the Indian electric scooters and motorcycles market. India would eventually follow the emission norms prevalent in western countries. Bharat Stage (BS) norms which are currently prevalent in India, are similar to the Euro norms of European Union (EU) countries. For instance, BS IV norms of India (implemented in 2017), are similar to Euro IV norms in EU countries. Moreover, the government plans to jump directly to BS VI by 2020, skipping BS V. These stringent emission norms are in line with the commitments made by India at the Climate Change Conference in Paris in 2017. Government focus to curb pollution levels in the country promises a positive regulatory environment for electric two-wheelers in the coming years, thereby driving the growth of the Indian electric scooters and motorcycles market.
Restraint
Lack of awareness about electric two-wheelers is a major hurdle in the growth of Indian electric scooters and motorcycles market. Majority of people, especially in the rural and semi urban areas, are still unaware of electric vehicles. Customers in these regions are more likely to prefer electric scooter, due to their short and slow trips in the countryside. The companies need to expand their dealerships every 20–40 kms to target these customers, and also invest in marketing to increase the awareness.
Additionally, the high cost of Li-ion batteries further increases the cost of the electric scooters and motorcycles, hindering the growth of the Indian electric scooters and motorcycles market. The other restraining factors deterring the growth of the market are the under developed value chain for the lithium-ion batteries, motors, and controllers of these two-wheeler. The presence of lesser number of variants in the market due to the existence of limited number of OEMs manufacturing electric scooters and motorcycles in India is also hampering the growth of the market.
Opportunity
Range anxiety in customers is a major factor thwarting the large-scale deployment and adoption of electric scooters and motorcycles in India. At present, electric scooters and motorcycles in the region have a short travel range (50–70 km) as compared to their equivalent conventional variants. However, advancements in the battery technology provides ample opportunity to the Indian OEMs to introduce higher range electric scooters and motorcycles, which can compete with that of conventional two-wheelers. Thus, the introduction of long-range vehicles by market players is expected to boost the adoption of electric scooters and motorcycles in the European region in the coming years.
Furthermore, the customers using electric scooters and motorcycles are demanding vehicles with higher range because of the unavailability of charging infrastructure, across the country. Thus, growing demand for electric scooter with longer range is providing ample opportunity to the OEMs in the Indian electric scooters and motorcycles market.
India Electric Scooters and Motorcycles Market Competitive Landscape
Some of the major players of the Indian electric scooters and motorcycles market are Hero Electric Vehicles Pvt. Ltd., Electrotherm (India) Ltd., Avon Cycles Ltd, Ampere Vehicles Pvt Ltd., LOHIA AUTO INDUSTRIES, and Okinawa Autotech Pvt. Ltd.
