India’s Electric 2 Wheeler Market
According to the PwC report, in FY19, over 7.6 Lakh (0.76 Mn) electric vehicles were sold, which was primarily dominated by two-wheelers (16.4%) and three-wheelers (83%), respectively. As per Niti Aayog, the electric two-wheeler industry is expected to grow at an exponential rate in the coming years, taking over 80% of the market by 2030. 1.5 Lakh Electric 2 wheelers in India currently as estimated by EV makers.
In FY2019, electric two-wheeler sales almost doubled to 54,800 units compared to the previous financial year. Most electric two-wheelers that we see on the roads do not require a license to buy or ride them (lesser than 25kmph). The options are plenty and the vehicle price also ranges from anywhere between INR 35K and 85K, which is lesser than petrol two-wheelers. As per the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME), the government has planned to provide financial support of INR 600 Cr for two-wheelers (with a maximum speed greater than 25 km per hour) through incentives.
The opportunity for the electric scooter market
The number of Hyperlocal Delivery Startups to serve consumers with plethora of services has increased in recent years, leading to increase in delivery executives. The EV Market in India is currently is untapped and is still at it’s nascent stage. Very few players are competing in this segment, thus giving enough room for market share.
The Central and the State Government’s Initiative to promote EV Industry in India, both in terms of manufacturing and infrastructure set up will encourage consumers to adapt in the future. Recent innovation in battery and vehicle manufacturing, battery swapping, increase in charging stations, IoT, etc. will make it convenient for consumers to own an EV.