India Electric Scooter and Motorcycle Market Trends and Drivers
Explore India Electric Scooter and Motorcycle Market Trends, Growth Drivers, and Opportunities from 2019 to 2030
India Electric Scooter and Motorcycle Industry Trends
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 cars 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.
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