Electric 2-Wheelers Future in India

Electric 2-Wheelers Future in India

The market of conventional 2-wheelers in India:

India is one of those countries in which the 2-Wheeler is the most versatile and widely used mode of transportation. India is the largest producer of 2-Wheelers. The Indian 2-Wheeler industry has grown much faster since its beginning. The Indian 2- Wheeler market includes Motorcycle, Scooter, mopeds, and performance bikes. The Motorcycle is the leading category in the Indian 2-wheeler market. The Indian 2-wheeler market is growing significantly, as per the annual report 2019-20 of the Society of Indian Automobile Manufacturers (SIAM), In FY 2019-20, the total sale of more than 15 Million 2-wheeler was done in the Indian automobile market. The sales figure for the last 5 years is given below: –

In FY 17-18 & 18-19, the sale was more than 20 Million but in FY 19-20, the sale was declined compared to previous financial years. Hero Motocrop is the largest manufacturer of 2-wheelers with a market share of more than 37% of total sales. The figure given below is showing the percentage of brand-wise market share:-

Adoption of Electric 2-Wheelers in India:

In India most of the cities used gasoline-powered 2-wheelers, electric 2-wheelers may be a better option to replace the gasoline-powered 2-wheelers in urban cities of India. The government of India has approved Phase-II of the FAME Scheme to generate the demand by way of supporting 7000 e-Buses, 500000 e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (including Strong Hybrid), and 1 million e-2 Wheelers. As per the National automatic board, more than 80,000 Nos. of 2-Wheeler are deployed across the various cities of the country. With the availability of new technology, awareness, and multiple manufacturers, Indian people are showing interest in purchasing the 2-Wheeler. The following points mentioned below will help 2-Wheeler Electric Vehicles to capture the market in urban cities: –

1. In the urban area, the person maximum travels 60-100 KM per day to go to the office, school, or college. Generally, they are using their Gasoline-powered 2-Wheelers or utilize other means of public transport. Common people think that the range of electric vehicles is very low and due to this they are slightly uncomfortable investing their money in electric 2-wheeler Now a day due to the advancement of technologies in the electric vehicle segment, the traveling range of vehicles in between 80KM-250 KM in one single charge. This will encourage people to invest their money in 2-wheeler electric vehicles.
2. The government of India is providing a subsidy of INR 15,000 per kWh with a capping of 40% of the cost of the vehicle. This will lead to the price reduction of 2-wheelers and increase the affordability of 2-Wheelers for the common people. Electric two-wheelers in India are likely to achieve price parity with their petrol counterparts as early as 2027, a study done by International Council on Clean Transportation has revealed. Comparing electric motorcycles and scooters with different battery sizes and varying ranges, ICCT has projected that an electric motorcycle with a 100-kilometer range would achieve cost parity with a similar petrol-powered bike by 2027. https://energy4planet.org/blogs-eletric-mobility-transformation/ 
3. During the initial stage, some startup companies are working in the electric vehicle 2-wheeler segment. But now a day, all the leading manufacturer of 2-wheelers has launched their electric 2-wheelers and these are available in the market. As people believe that known brands are more reliable as compared to start-ups, especially in case of the automobiles. The involvement of known brands will also encourage people to invest their money in electric 2-wheelers.

1. One of the major reasons for the slow adoption of commercial and 4-wheeler electric vehicles are non-availability of public charging stations. But in the case of the electric 2-wheeler, the 2-wheeler can be charged with our home power supply. No additional investment is required.
2. A hike in the gasoline price will also become a big determinant in the selection and use of electric 2-wheelers. The total life cycle cost of electric vehicles is more economical as compared to conventional 2-wheelers due to a hike in fuel price. This will also encourage the common people to opt for an electric 2-wheeler.

The sales volume of the Indian electric two-wheeler industry is expected to massively increase from 80 thousand units to 1080 thousand units in 2025, at a 57.9% CAGR between 2020 and 2025.