The growing environmental concerns, stringent emission norms, government push for vehicle electrification, and supportive financial and non-financial incentives by the central and various state governments are leading to the rising sale of electric two-wheelers in India. It is expected that the sales volume of electric scooters and motorcycles will reach 1,080.5 thousand units by the end of 2025, with a CAGR of 57.9% during the forecast period (2020–2025). Additionally, the expected surge in the demand for high-speed electric scooters, increase in the sales of electric motorcycles during the forecast period, the Indian electric scooter and motorcycle market revenue is expected to reach $1,043.4 million by 2025.
Due to the COVID-19 pandemic, the Indian electric scooter and motorcycle market has witnessed a slowdown. The most visible remedy taken by the government to curb the spread of the virus is the pan-India lockdown, which has brought the demand for two-wheelers to naught. Short-term financing support and tax deferrals from the government are expected; however, it is highly speculated that the government will alter its priorities and the focus too may divert toward more-pressing social and economic issues. Furthermore, the International Monetary Fund (IMF) has already sounded bells for ‘deep recession’, with markets crashing more than 30%, globally. This has created a trust deficiency in the minds of investors, which was of crucial importance for a capital-intensive industry such as electric vehicle (EV), which is still in its initial phase in India.
Electric Scooter Will Continue Dominating Market
In 2019, a total of 5,566.0 thousand scooters were sold. constituting 32.0% volume share in total two-wheeler sales. Over 95% of these scooters have engine capacity than 150 cubic centimeters (cc), as they are highly suitable for the local unpaved roads and affordable for people with a limited purchasing power. With Government of India’s plans to mandate 100% electric two-wheeler sales by March 2025, the uptake of conventional, fuel-based scooters under this segment is expected to decrease significantly. However, industry experts believe that the target set by the government is unrealistic and impractical. It is predicted that by 2025, electric scooters will have a penetration of just over 10%, under the business-as-usual (BAU) scenario. The sale of electric motorcycles was negligible in 2019; however, their production and demand are expected to surge in the coming years, thereby supporting the growth of the Indian electric scooter and motorcycle market.
Further, in terms of battery type, the Indian electric scooter and motorcycle market is categorized into lead–acid and lithium-ion (Li-ion) batteries. lead–acid batteries have been dominating the electric two-wheeler landscape in India, due to their low price, easy availability, and demand for low-speed electric scooters. However, the falling price of Li-ion batteries, government polices supporting Li-ion-battery-equipped electric two-wheelers, inherent advantages of Li-ion batteries over SLA variants, increasing demand for high-speed and high-range two-wheelers, and ongoing activities for the production of Li-ion batteries in the country are expected to benefit the Li-ion category during the forecast period.
Based on application, the business-to-business (B2B) bifurcation is gaining significant momentum in the Indian electric scooter and motorcycle market. Emerging two-wheeler services, such as scooter sharing, moto taxi, and ride hailing, and adoption of electric two-wheeler in these services are expected to raise the demand for electric scooters and motorcycles in the coming years.
On the basis of speed, electric scooters with a maximum speed of less than 25 km/h held the largest sales volume share, of over 80%, in the Indian electric scooter and motorcycle market in 2019. This was mainly due to their low cost and no license and number plate registration requirements. Driven by policy incentives, high-speed (>50 km/h) is expected to be the fastest-growing category during the forecast period.
Delhi and Karnataka are two of the fastest-growing electric scooter and motorcycle markets in India. The support by the government, rising popularity of two-wheeler mobility services among a large number of migrants, rising environmental concerns, and shifting preference toward clean and green vehicles are expected to benefit the electric scooter and motorcycle market in these states. Furthermore, Uttar Pradesh and Tamil Nadu are expected to be the two biggest states for electric two-wheelers by 2025.
Product Launches and partnerships Are Strongest Strategic Measures Taken by Players
Players in the Indian electric scooter and motorcycle market are launching new models, to avail the benefits of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME)-II scheme. As per the latest eligibility criteria, electric scooters ought to have a minimum range of 80 km per charge and minimum top speed of 40 kmph. More than 35 models have been launched in the market since 2018. All the major original equipment manufacturers (OEMs) are focused on increasing their product portfolio and dealer network, to gain a competitive edge in this emerging market. Furthermore, OEMs are partnering with B2B customers, such as sharing service providers and delivery partners.
Browse report overview with detailed TOC on "India Electric Scooter and Motorcycle Market Research Report: By Product (Scooter, Motorcycle), Battery Type (Sealed Lead Acid, Lithium-Ion), Voltage (36 V, 48 V, 60 V. 72 V), Technology (Removable, Non-Removable), Maximum Speed (<25 km/h, 25–50 km/h, >50 km/h), Sales Channel (Online, Offline), Application (B2B, B2C), State - Industry Analysis and Growth Forecast to 2025" at:https://www.psmarketresearch.com/market-analysis/india-electric-scooter-and-motorcycle-market
Some of the major players operating in the Indian electric scooter and motorcycle market are Hero Electric Vehicles Pvt. Ltd., Electrotherm (India) Ltd., Avon Cycles Ltd., LOHIA AUTO INDUSTRIES, Okinawa Autotech Pvt. Ltd., TVS Motor Co. Ltd., TWENTY TWO MOTORS PVT. LTD. (22 KYMCO), Bajaj Auto Ltd., Ather Energy Pvt. Ltd., Ampere Vehicles Pvt. Ltd. (Greaves Cotton Ltd.), and Tunwal E-Vehicle India Pvt. Ltd.