India Electric Scooters and Motorcycles Market by Product (Scooter, Motorcycle), by Battery Type (Sealed Lead Acid, Li-ion), by Voltage (36V, 24V, 48V), by Technology (by Plug-in, Battery) – Market Size, Share, Development, Growth and Demand Forecast, 2013-2025

India Electric Scooters and Motorcycles Market Overview

India electric scooters and motorcycles market size valued at $24.6 million in 2016, it is expected to grow at a CAGR of 45.4% during 2017 - 2025. Electric scooters started commercially selling in India in mid 2000s. However, the sales grew slowly, mainly because of sub-standard products, lack of government support and high taxes. However, with increasing government support and rising population awareness electric scooter and motorcycle sales in the country is expected to grow significantly over the forecast period. The investors interest in this market has increased and start-ups, backed up by leading venture capitalists have entered into the market. Moreover, leading two-wheeler manufacturers too have announced their plans to launch electric scooters and motorcycles in coming years.

Electric scooters and motorcycles are similar to the gasoline powered ones, except that they use electric power (from the battery) to propel the vehicle. Electric scooters and motorcycles are environmentally friendly as they do not have any tailpipe emissions and are virtually silent. Electric two-wheelers can manoeuvre through congested streets; can be charged from traditional wall outlets and often have a removable battery, allowing them to be charged indoors. They are either plug-in or fully battery operated.

Drivers

India would follow the toughest global emission norms Bharat Stage (BS)-VI, from the current BS-IV, by 2020, skipping the BS-V. Such policies or initiatives to curb pollution levels in the country promises a positive regulatory environment for electric two-wheelers in coming years.

Challenges

Lack of awareness of electric two-wheelers is a major hurdle to the sales of electric scooters and motorcycles in the India. The majority of people, especially in the rural and semi-urban areas are still unaware of electric vehicles. Customers in these regions are the most prospective target for sales due to their short and slow trips in the countryside. Companies would need to expand their dealerships every 40-50kms to target these customers and also invest in marketing to increase the awareness.

Unlike electric cars, the batteries of electric two-wheelers could be charged overnight at home. However, on-the-go recharge stations could go a long way increasing practicality of owning an electric scooter or a motorcycle. Currently, the recharge stations in India is negligible. Considerable increase in the number of recharge stations would be required in medium to long term to support the growth of electric two-wheelers in the country.

India Electric Scooters and Motorcycles Market - Competitive Landscape

The competition is less with only a few players of players operating in the India electric scooter and motorcycle industry. Few players closed down their operations in the past due to less sales. Hero-Electric is a clear market leader accounting for close to three-fourth of sales. However, the competition is set to increase in the coming years. Start-ups and big automobile manufacturers are expected to introduce electric two-wheelers in India in the next few years.

Over the last decade, start-ups backed up by big venture capitalists have entered the market. For instance, Ather Energy, formed in 2013, is funded by Tiger Global Management. Other important players in the market includes Tork and Electrotherm. Big two-wheeler manufacturers such as Bajaj, Mahindra, TVS and Hyosung also have plans to launch electric scooters in the next couple of years.