India Electric Scooter and Motorcycle Market Report: Size and Share Analysis, Trends, Forecasts (2024 - 2030)

India Electric Scooters and Motorcycles Market Trends & Drivers

Growing Investment in Electric Two-Wheeler Space Is a Key Trend

• In the past, due to a lack of consumer awareness, flip-flop regulatory and incentive policies, and low market visibility, among other factors, startups faced difficulties in getting investors on board.
• However, with the entry of major two-wheeler manufacturers, such as TVS Motor Company and Bajaj Auto Limited, coupled with the government’s strong push for electric vehicles, investors are showing active interest in the electric two-wheeler space.
• These investments have not only helped manufacturers with the high upfront capital required in the initial stages of assembly and supply chain setup but also in keeping the cost of these vehicles low, while boosting their quality.

Government Subsidies and Regulatory Policies Are Key Driving Factors

• The Indian government is supporting the electric vehicle market by providing subsidies on the purchase of battery and two-wheelers.
• Subsidies help the market grow by making such automobiles more viable for the customer. Some of the supportive initiatives in India are tax exemptions, purchase rebates, and financial incentives for the buyers. The Government of India has introduced the FAME-2 scheme to fund the purchase of EVs and the installation of charging stations.
• It focuses on the adoption of EVs with the aim to reach 30% penetration by 2030, which further strengthens the evolution potential of electric mobility in the country.
• Furthermore, under the National Mission for Transformative Mobility and Battery Storage, the Indian government has formulated an action plan to promote electric two-wheelers and three-wheelers and proposed to ban all conventional internal combustion engine two-wheelers from 2025 and three-wheelers from 2023.

Lack of Charging Infrastructure and Range Anxiety Are Key Challenges

• Even though electric two-wheelers can be charged at home, the presence of ample charging stations can go a long way in increasing the sales of plug-in models. However, at present, the charging infrastructure in India is severely inadequate.
• As of 2023, only 12,146 public charging stations were installed across India. Increasing the number of charging stations at a sufficient scale would require public and private funding and considerable time, which could slow down the sales of plug-in electric two-wheelers.
• Range anxiety in customers is another major factor affecting the sale of electric scooters and motorcycles. Since the battery of an EV cannot store an equivalent amount of energy as a gasoline vehicle tank, electric models suffer a substantial disadvantage in terms of range.
• Most electric scooters have a shorter range (50–80 km) than their conventional counterparts. While electric vehicles outdo as a daily commuting option for short, fixed-distance round trips, drivers often experience range anxiety for long-distance needs.

India Electric Scooters and Motorcycles Market Analysis

Product Insights

• Electric scooters will dominate the market with a share of 60% in 2024. The availability of a considerable number of electric scooter models in various speed ranges, their low cost, as well as their viability in place of the conventional gasoline-driven mopeds are fueling their sales in India.
• The motorcycle category is expected to have the higher CAGR over the forecast period, as manufacturers are expected to launch various models in the country in the coming years.

The products covered in the report include:

• Scooter (Larger Category)
• Motorcycle (Faster-Growing Category)

Battery Type Insights

• Sealed lead–acid (SLA) batteries have been dominating the market with a share of 65% in 2024. This is due to their lower price compared to lithium-ion (Li-ion) batteries. However, over the past few years, the global prices of Li-ion batteries have seen a significant decline.
• The Li-ion battery bifurcation is expected to be the faster growing during the forecast period, with 66.7% CAGR. These batteries have a higher energy density than SLA batteries, making them lighter and more efficient.
• Moreover, Li-Ion batteries have a greater life span (more than 2,000 charge cycles) compared to SLA alternatives (maximum of 400 charges). Furthermore, Li-Ion batteries charge faster (1–2 hours) than SLA ones (7–8 hours). Apart from this, the latter have higher environmental risks than Li-Ion batteries.
• Despite the price drop, Li-ion-battery-powered electric two-wheelers cost considerably more than those powered by SLA batteries. However, automobile companies believe that the customers would be willing to pay the extra amount and get the above-mentioned benefits.

The following battery types are included in the report:

• Sealed Lead–Acid (Larger Category)
• Lithium-Ion (Faster-Growing Category)

Voltage Insights

• 48-V batteries are the most-commonly used, holding an over 40% share in 2024. Scooters with 48-V batteries are a reasonable buy in terms of cost-effectiveness, range, and safety, which is why the category will remain dominant during the forecast period.
• Owing to the increasing demand for higher speeds and longer driving ranges, the share of electric two-wheelers with batteries that offer 72 V and higher voltages is expected to rise at the highest CAGR.

The voltages covered in the report are:

• 36 V
• 48 V (Largest Category)
• 60 V
• 72 V and Above (Fastest-Growing Category)

Technology Insights

• The removable bifurcation dominates the market in 2024, and it is expected to grow with the higher rate, during the forecast period. Due to the lack of charging infrastructure and range anxiety among customers, removable batteries have emerged as a solution.
• People can simply detach the battery from their vehicle, carry it along, and connect it to a regular domestic electricity socket. Hence, the technology is expected to have a significant impact on the market and augment the speed of vehicle electrification in the country.

The segment is classified as:

• Removable (Larger and Faster-Growing Category)
• Non-Removable

Maximum Speed Insights

• Electric scooters and motorcycles with a maximum speed less than 25 km/h hold the largest share in the market, in 2024. This is mainly due to the no license and number plate registration requirement for these vehicles. Besides, the category is expected to continue dominating the market during the forecast period.
• Greater than 50 km/h is expected to be the fastest-growing category during the forecast period. Government support in the form of incentives and subsidies, coupled with the decreasing Li-ion battery price, is supporting the growth of the category.
• Furthermore, the increasing consumer purchase power and preference for superior comfort, safety, and motive power will benefit the market during the forecast period.

The maximum speeds analyzed in the report include:

• <25 km/h (Largest Category)
• 25–50 km/h
• >50 km/h (Fastest-Growing Category)

Sales Channel Insights

• The offline category dominates the market share in 2024, and it is expected to grow fastest during the forecast period.
• Automobile dealerships have been the conventional places for people to purchase vehicles, as they get to learn all they want about the model, as well as test-drive them.
• The online bifurcation is expected to grow significantly, during this decade.
• With the increasing internet penetration, growing e-commerce sector, and the ease and convenience of shopping through these sales channels, consumers’ confidence in them is surging.

We have studied the following sales channels in the report:

• Online
• Offline (Larger and Faster-Growing Category)

Application Insights

• B2C is the larger category in 2024. Two-wheelers, be it electric or ICE models, have traditionally been used majorly for personal mobility and owned by end users themselves.
• The B2B category is expected to grow significantly, during the forecast period, owing to the emergence of shared mobility services, such as scooter sharing and moto taxi, as well as urban freight & logistics.
• More than 2 million petrol-run scooters and motorcycles in India are engaged in courier services, plying for multiple hours every day. Moreover, the large number of food and beverage stores opening across tier-1 and tier-2 cities has increased the demand for two-wheeler fleets for delivery.
• This has provided an opportunity to the major OEMs to convince last-mile delivery firms to replace their old vehicle models with cost-effective, low-maintenance, and environment-friendly alternatives.

The applications covered in the report are:

• Business-to-Business
• Business-to-Customer (Larger and Faster-Growing Category)

Regional Analysis

Uttar Pradesh Is Largest State

• Uttar Pradesh dominates the Indian electric scooters and motorcycles market with a share of 30% in 2024.
• Uttar Pradesh is the largest two-wheeler market in India, with the penetration of electric variants continuously increasing in the state, especially in the major tier-2 and tier-3 cities.
• As per The Times of India, Uttar Pradesh has around 5.7 lakh electric vehicles registered, the highest of any state.
• In addition, owing to the high growth potential in this state, the major OEMs’ focus on increasing their share, by expanding their dealer network, is benefiting this domain.
• The Karnataka electric scooters and motorcycles market is expected to be the fastest growing in the country, with 67.2% CAGR.
• This will be due to the increasing sale of electric motorcycles in the state.

The states analyzed in this report include:

• Uttar Pradesh (Largest State)
• Maharashtra
• West Bengal
• Madhya Pradesh
• Gujarat Electric
• Tamil Nadu
• Delhi Electric
• Rajasthan
• Karnataka (Fastest-Growing State)
• Haryana
• Rest of India

India Electric Scooter and Motorcycle Market Share

Market Nature – Consolidated

The Indian electric scooters and motorcycles market is consolidated in nature with the main players being Okinawa Autotech, Hero Electric, Ather Energy, Ampere, and Revolt. Companies are expanding their distribution networks to sell electric scooters along with the conventional models, to attain a pan-India presence. Further, they are pursuing advancements in batteries and motors, the two most-important and -expensive components of EVs.

India Electric Scooters and Motorcycles Market News

• In January 2023, Hero MotoCorp won an arbitration to use the ‘Hero’ logo for its electric vehicles against Hero Electric.
• In February 2024, Yamaha Motor Co. Ltd. acquired a stake in EV startup River with an investment of around USD 20 million.
• In December 2023, Jindal Mobilitric Pvt. Ltd. announced that it will launch three electric two-wheeler models by the end of December 2024.
• In December 2023, Honda Motors announced that it will launch its electric vehicle, equivalent to conventional models in the range of 110–125 cc, in India in 2024.