Posts | Comments

Indian Electric Two-Wheeler Market Analysis, Forecast 2022-2028

Contact Us
priyanka avhad
Office 112 – H160 – BSI Business Park Sector – 63,
Noida
UP 201301 
india
Phone:08666586826
priyanka@blueweaveconsulting.com

The Indian electric two-wheeler market was worth USD 64.5 million in 2020 and is further projected to reach USD 360.3 million by 2027, at a CAGR of 27.6% during the forecast period (2021-2027). The growing concern over air pollution is pushing the automobile industry to reduce its carbon footprint, bolstering the need for electric cars on the market. Additionally, the market is primarily driven by strict emission norms/regulations, government incentives, and increasing environmental awareness. The government also extends its support to electric two-wheelers through subsidies, thus, encouraging the adoption of these vehicles as a ‘good replacement’ of the conventional ones.

Growth Drivers

Growing Concerns Over Environmental Pollution

On the Environmental Pollution Index, India is among the bottom five countries in the environmental health category. As far as air quality is concerned, India’s CO2 emissions rate is increasing every year owing to the emission of toxic gases by fuel-based vehicles. The Government of India is now focusing more on EVs such as two-wheeler vehicles and introducing policies such as FAME 1 and FAME 2. These initiatives would help improve air quality besides favoring the market during the forecast period. Furthermore, the fact that an electric two-wheeler has lower maintenance and running costs than an internal combustion engine vehicle will propel the industry forward in the coming years.

Heavy Investments from Automakers in Electric Two-Wheeler

The rising demand for India’s electric two-wheeler market is expected to be fueled by heavy investments from automakers. Big companies like Hero Electric Vehicles Pvt. Ltd., Lohia Auto Industries, Electrotherm (India) Ltd, and others are investing huge money in the EV market by launching new, cheap, and affordable two-wheelers.Over the forecast period, the Indian electric two-wheeler market is expected to be driven by the rising number of electric two-wheeler manufacturers and their increasing emphasis on research and development to produce technologically advanced and affordable electric two-wheelers.

Sample Copy of the report: https://www.blueweaveconsulting.com/report/india-electric-two-wheeler-market/report-sample

Restraints

Lack of Standardization of Charging Infrastructure

One of the biggest restraints for the success of deploying the electric two-wheelers in India is the lack of adequate charging infrastructure. India’s electric vehicle charging infrastructure is still in its infancy. It is yet to catch up to meet the country’s needs, which is seriously impeding the adoption of electronic vehicles in the country. The land proposal is a major challenge in any metro city as charging stations need reserved space not just for the setup, but also for parking spaces so that multiple vehicles can park and use the charging station. These are a few factors hindering the growth of the electric two-wheeler market in India.

Impact of COVID-19

The COVID-19 pandemic has posed a major threat to India’s electric two-wheeler market as demand has been hampered as a result of the lockdown. For a market that is trying to strengthen its position in the industry, the COVID-19-infused lockdown was a severe blow. Moreover, major auto manufacturers were also impacted by this communicable disease. However, the launch of BS-VI standards has created ample opportunities for electric two-wheelers amid the pandemic. Since BS-VI cuts down tailpipe emissions, they emit less heat and produce less noise compared to conventional vehicles. Investing in electric two-wheelers is likely to help in retaining air quality and lower health risks in communities. We have already entered the post-pandemic era; consumers now feel safer and protected to travel in their own vehicles so the demand for private vehicles is increasing, thus, creating significant opportunities in the electric two-wheeler market.

India Electric Two-Wheeler Vehicle Market: By Battery

Based on battery, the Indian electronic two-wheeler market is categorized as lead-acid battery and Lithium-Ion-batteries. Lithium-ion batteries have the highest market share because they are lightweight, have improved protection, are chemically and thermally stable, are more reliable, and are capable of fast charging. Because of these advantages, electric two-wheeler manufactures are widely adopting lithium-ion batteries in electric two-wheelers, which in turn is driving the growth of the lithium-ion battery in this segment. Furthermore, lithium-ion batteries can last up to 10 years or longer, based on how well they are maintained, attracting customers to purchase electric two-wheelers besides fueling market development.

Indian Electric Two-Wheeler Vehicle Market: By Vehicle Type

Based on the vehicle type, the Indian electric two-wheeler is segmented into EV scooters and motorcycles. The scooters hold the largest share among the two vehicle types. EV scooters are expected to stay at the top as the trends and volume of sales appear to favor two-wheeler EV scooters. The contributing factors for this growth in the demand for EV scooters could be the rising subsidies granted by the government for reduced use of conventional vehicles which have increased the pollution levels in the past several years.

India Electric Two-Wheeler Market: Regional Analysis

India electric two-wheeler market is segmented into Eastern India, Northern India, Southern India, Western India wherein, Southern India accounts for the highest share. Southern India is expected to be the largest and fastest-growing market as many automotive industries are setting up their manufacturing units in the Southern part of India. Bangalore is known as Silicon Valley of India as many startups have established their business in Bangalore due to friendly rules and regulations set up by the Government of Southern India, which have attracted various manufacturers to set up manufacturing units, thereby boosting the demand for electric two-wheelers in the region.

Competitive Landscape

The leading players in India’s electronic two-wheeler market are Hero Electric Vehicles Pvt. Ltd, Lohia Auto Industries, Electrotherm (India) Ltd, Avon Cycles Ltd, Okinawa Autotech Pvt. Ltd., NDS Eco Motors Private Limited, YULU, Ather Energy, AMPERE VEHICLES, Revolt Motors, Hero Electric Vehicles Pvt. Ltd., and other prominent players.

The Indian electric two-wheeler market is consolidated in nature. The rise in government initiatives and programs for providing subsidies has led to the rising demand for electric two-wheelers. In terms of competition, many new players are expected to enter the market in the coming years as the electric two-wheeler market is emerging rapidly. Moreover, the market participants are continually focusing on improving their services to attain a competitive edge over other players.

About Us
BlueWeave Consulting (BWC) provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost the performance of your business solutions. BWC has built its reputation from the scratch by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.

Contact Us:
BlueWeave Consulting & Research Pvt. Ltd
+1 866 658 6826 | +1 425 320 4776 | +44 1865 60 0662
info@blueweaveconsulting.com

Leave a Reply