The Indian electric scooter and motorcycle market size is expected to advance at a CAGR of 27.30% during 2022–2030, to reach USD 6,161 million by 2030.
This is ascribed to the growing environmental concerns, stringent emission norms, government push for vehicle electrification, rising demand for high-speed two-wheelers, and supportive financial and non-financial incentives by the central and various state governments.
In recent years, the Indian electric scooter and motorcycle market has grows considerably in states in the southern part of the country. The government support, developments in the EV value chain, and the customer acceptance of such automobiles, especially in the major tier-1 and tier-2 cities in the region, are benefitting the market.
Delhi is also witnessing an increasing demand for these vehicles, owing to the regulatory support by the government. In the next few years, Karnataka, followed by Delhi, is expected to become the fastest-growing market in the country.
The increasing concerns for the environment, primarily due to the increasing rate of ozone layer depletion, are driving electric vehicle sales in India. At present, the automobile sector contributes over 40% of the country’s total greenhouse gas emissions. Environmental agencies’ concerns over the air quality degradation caused by the increasing amount of exhaust fumes from vehicles are paving the way for various government initiatives for the electrification of the transportation sector.
Apart from the central government, authorities at the state and city levels are also taking initiatives to curb the emissions, such as reducing the usage of fuel-based vehicles by promoting EVs.
Another important factor driving the Indian EV market is reduction in the cost of Li-ion batteries, due to economies of scale. Around 40–50% of the EV cost is made up by the battery. Currently, almost all EV manufacturers source Li-ion batteries from Japan, China, and South Korea, constrained from getting them locally by an underdeveloped value chain and a lack of raw material. Hence, as battery production increases in India, the prices of these components will decline, which will make EVs cost-effective.
Some of the major players operating in the market are Hero Electric Vehicles Pvt. Ltd., Electrotherm (India) Ltd., Avon Cycles Ltd., Benling India Energy and Technology Pvt. Ltd., Okinawa Autotech Pvt. Ltd., TVS Motor Co. Ltd., Bajaj Auto Ltd., Ather Energy Pvt. Ltd., Greaves Electric Mobility Private Limited, Tunwal E-Vehicle India Pvt. Ltd., Ola Electric Technologies Pvt. Ltd., and Revolt Intellicorp Pvt. Ltd.