The Indian electric two-wheeler market size is expected to reach USD 750 million by 2025, growing at a CAGR of 44% during 2020-2025. The electric two-wheeler market in India is emerging on account of increased government policies supporting battery-powered vehicles, the growing awareness toward the environment, increasing petrol prices, and stringent emission norms. The Government of India has taken several initiatives to boost the sale in the two-wheeler EV market in India, including two-wheelers.
In 2013, with the launch of the National Electric Mobility Mission Plan 2020, which aims to increase the adoption and manufacturing of EV in India (FAME India), around 90% of the vehicles that availed incentives, were battery-powered two-wheelers. Similarly, in the Union budget 2019, the government had framed several policies and announced rebates on these vehicles. Hence, the remission to customers on interest to buy these vehicles is expected to increase adoption and demand for battery-powered scooters and motorcycles.
Another important driver contributing to the growth and driving the electric scooter market size in India is the growing awareness of greenhouse gas emissions such as carbon dioxide and environmental pollutions.
- The Uttar Pradesh government is planning to set up nearly 2 lakh slow and fast charging stations by 2024, thereby boosting the adoption of battery electric vehicles (BEV).
- In Delhi, delivery services are expected to shift 50% of petrol two-wheelers to battery ones by March 2023.
- The Maharashtra government has proposed a policy for the installation of charging stations for EV, with a 25% capital subsidy on equipment and machinery.
- The Gujarat Government introduced a single-window facilitation portal for electric vehicle investors. It is a centralized system to monitor applications related to EV and helps to have a user-friendly and simplified application process for registrations.
- The Tamil Nadu government offers a 100% road tax exemption for battery-powered two-wheelers till December 2022.
INDIA ELECTRIC TWO-WHEELER MARKET SHARE & SEGMENTATION
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INSIGHTS BY TECHNOLOGY
Swappable batteries to be in demand during the forecast period
The removable battery segment is expected to grow at the highest CAGR during the forecast period. As electric scooters and motorcycles face the challenge of charging infrastructure, removable batteries have emerged as a solution in India. Removable batteries are more in demand than non-removable ones as they provide charging at home. They are expected to be a gamechanger.
The change to detachable batteries will double the country's speed toward electrification. Swappable batteries are also a major idea, which is currently emerging among several electric two-wheeler manufacturers.
INSIGHTS BY BATTERY
Li-ion batteries usage to increase during the forecast period
Currently, several manufacturers utilize lead-acid batteries as they are easy to procure and cheaper. However, lithium-ion batteries are also witnessing demand as they are better in terms of range, speed, and charging. Although the share of lead-acid batteries is expected to lead during the forecast period, li-ion batteries are likely to grow significantly by volume. A high-speed lithium-ion battery-powered vehicle costs two times than a low-speed lead-acid battery strapped version.
Although lead-acid batteries are expected to be phased out due to their low capacities and efficiencies, depths of discharge, and reduced low lifespans, lithium-ion batteries are the future of e-transportation. The availability of subsidies and increasing efficiencies in lithium-ion battery technology is expected to increase application.
INSIGHTS BY VEHICLE
Electric scooter sale to exceed 2 million by 2030
With India's major automobile manufacturers entering battery-powered vehicle manufacturing, electric scooters and motorcycles are gradually becoming mainstream transportation. Backed by the “Make in India” initiative and the rise of indigenous start-ups, the government has targeted to be 90% electrical by 2025. The e-scooter and motorcycle market has grown significantly in the last three years on account of government subsidies and initiatives. Battery type scooters and motorcycles are spearheading the e-revolution in India.
After the launch of the FAME II scheme in April 2019, there was a sharp decline in the sale of electric scooters and motorcycles on account of low subsidy, which eventually increases the cost of electric scooters and motorcycles. Decreasing air quality and rising traffic is becoming the most challenge in major Indian cities. E-scooters hold the potential to emerge as a safe and viable alternative.
INSIGHTS BY VOLTAGE
72V demand will increase in high-range electric two-wheelers
The voltage of a battery is a major differentiator in EV as it impacts range, speed, mileage, price, and weight. 48V batteries experience high importance in the electric vehicle market as they are cost-effective and safe. These batteries are in demand from the automotive, industrial, and communications industries. This segment is expected to have the majority share in the electric vehicle battery segment.
60V batteries are the second most preferred in the electric two-wheeler market. In terms of battery capacity, 60V Lithium-ion battery chargers are designed with ultra-high efficiency and complete metal case enclosures. Manufacturers are shifting toward low to medium range (60V) electric vehicle sales due to stringency in emission norms.
INSIGHTS BY SPEED
Electric two-wheelers have greatly penetrated the market. The high-speed two-wheeler segment receives support from the government in the form of subsidies. Thus, high-speed two-wheelers are projected to be high demand during the forecast period.
All low-speed batteries run on lead-acid batteries, making them feasible and less expensive. Therefore, it constitutes the majority of battery-powered vehicles.
INSIGHTS BY GEOGRAPHY
The Indian auto industry became the fourth largest producer in the world by manufacturing more than 30 million passenger cars and commercial vehicles in 2019. The Indian automobile market is among the top five markets with the highest FDI inflows. There is a huge scope in the automobile market in India with the growth in infrastructure, technology, and consumer demand.
With the increase in population and automobiles in India, pollution levels are soaring. Hence, the introduction of electric two-wheelers is the preferable solution in the country. The government is pushing adopt towards electric two-wheelers to curb pollution and reduce dependence on fossil fuel. This in turn is likely to increase in the adoption of EV.
INSIGHTS BY VENDORS
The Indian electric two-wheeler market is a highly competitive market with several regional and local players. A majority of the India two-wheeler market share is captured by Hero Electric (Ather Energy), Ampere, Okinawa, and many others. The market players are focusing on developing innovative products and increasing their product portfolio by making high R&D investments. Although the established players dominate the market, growth opportunities for regional and local players also exist.
The electric two-wheelers report India includes growth rates, supply chain insights, revenues & forecasts. The market offers segmentation based on the following:
Market By Vehicle Type