Indian Electric Two-Wheeler (e2W) Market, Forecast and Growth Opportunities, 2024–2030
A Confluence of Factors Is Driving Transformational Growth by Addressing Challenges Related to Affordability, Infrastructure, and Consumer Awareness
26-Aug-2024
South Asia, Middle East & North Africa
Market Research
The Indian electric two-wheeler (e2W) market has witnessed phenomenal growth over the past five years. Government policy initiatives including subsidies and tax breaks on e2Ws have incentivized purchases. However, with recent policy changes there has been a slowdown in the market, but the government aims to cultivate a self-sustaining EV ecosystem, with cost reductions leading to less reliance on subsidies, also creating a long-term opportunity for investors who can capitalize on advancements and growing demand.
Established two-wheeler OEMs have become competition for the new e2W entrants, creating a dynamic market with a wider range of choices and potentially faster technological advancements.
While Indian EV charging infrastructure continues to develop, the government and private players are investing in expansion of charging networks, with a focus on creating a robust ecosystem for E2Ws in the country.
This study analyzes the Indian e2W market, considering essential players attracting investments, the main business models, the impact of changes in government policies, shifts in market share over the past few years and the reasons behind them, stakeholder strategies, and growth opportunities.
Author: Shraddha Ramdas Manjrekar
Research Highlights
The Indian e2W Market: Forecast Sales in Volume
The Indian e2W market has tremendous growth potential with a focus on innovation, affordability, and infrastructure development by market stakeholders.
Building robust domestic supply chains or strategic partnerships will mitigate potential disruptions while staying agile and adaptive to evolving market dynamics will be vital to success.
Research Scope
- To study the Indian e2W market.
- To identify and analyze the leading e2W original equipment manufacturers (OEMs) in India.
- To understand significant trends in the Indian e2W market.
- To capture essential players attracting investments in India’s e2W market.
- To identify and analyze OEMs by types.
- To identify 3 primary growth opportunities in the Indian e2W market.
- To understand the focus on investments, government support, and start-up scenarios of e2Ws in the country.
- To analyze the main business models in the Indian e2W market.
- To analyze essential players in e2W battery-swapping technology, e2W motor manufacturing, battery cell suppliers, and charging infrastructure.
- To forecast Indian e2W unit sales from FY 2025 to FY 2030.
Scope | |
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Geographic Coverage | India |
Study Period | FY 2019 - FY 2030 |
Base Year | FY 2024 |
Forecast Period | FY 2025 - FY 2030 |
Monetary Unit | US Dollars |
Indian e2W Analysis Segmentation Focus & Definitions
Electric Moped (eMoped)
- The eMoped falls under the L1e-B vehicle category.
- These e2Ws have a motor power output of <4 kilowatts (kW) with a top speed of <45 km per hour (kmph), equivalent to an internal combustion engine (ICE) 2W with <50 cubic capacity.
Electric Scooter (eScooter)
- The eScooter falls under the L3e-A1 category.
- These e2Ws have a motor power output between 4 kW and 11 kW.
Electric Motorcycle (eMotorcycle)
- The eMotorcycle falls under the L3e-A2 and L3e-A3 categories.
- These e2Ws have a motor power output of >4 kW.
Indian e2W Market Key Competitors
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Indian e2W Market Growth Drivers
- Government Push for Electric Vehicle (EV) Policy Revisions
- Increasing Investments
- Developing Charging Infrastructure
- Availability of Varied Options
- Increasing Smartphone Penetration
- Availability of Ownership/Leasing Options
Indian e2W Market Growth Restraints
- Perceived EV Range Anxiety
- Higher Production Cost
- Inadequate Local Battery Manufacturers
- Lower Penetration of Dealer and Distributor Network for New Entrants
- Absence of Rural Awareness and Lack of Road Infrastructure
Key Takeaways
MARKET SNAPSHOT
India's e2W market is experiencing a boom, with penetration reaching above 5.3% in FY 2024. Sales are experiencing phenomenal growth, with high-speed eScooters leading the charge and indicating a consumer shift toward cleaner, more efficient, and more powerful electric options.
GOVERNMENT REGULATIONS
The Indian government actively supports e2W adoption through schemes such as FAME-II and the Electric Mobility Promotion Scheme (EMPS) 2024 that provide subsidies and incentives to manufacturers and buyers. The Indian government aims for a massive 80% e2W market share by 2030.
COMPETITIVE ENVIRONMENT
Established players, such as Hero MotoCorp, Bajaj, and TVS, have joined new entrants, such as Ather Energy and Ola Electric, creating a dynamic market with diverse product offerings. This competitive environment is driving innovation in battery technology, range, and features, leading to a wider variety of e2Ws for consumers.
CHARGING INFRASTRUCTURE
Charging infrastructure remains a significant hurdle for e2W adoption, especially in Tier III and Tier IV cities. The government and private players, such as Sun Mobility, Battery Smart, Gogoro, and Ather Grid, are investing in expanding charging networks and Battery-as-a-Service (BaaS) to create a robust e2W ecosystem.
MARKET TRENDS
Embedded telematics, removable batteries, fast charging, and touchscreen displays are some of the most rapidly evolving trends in India’s e2W market. Together, these features create a more connected, convenient, and user-friendly e2W experience, accelerating e2W adoption and contributing to a more sustainable future.
Indian e2W Market: Existing EV Charging Stations
As of Feb 2024, India had 12,146 public electric vehicle (EV) charging stations.
Strategic Focus Areas for e2W Stakeholders in 2024
- Customer Focus Strategies (Target Audience Strategies)
- Retailing Strategies
- Pricing and Incentive Strategies for e2W Market Stakeholders
- Product Development and Differentiation Strategies
- Exploring New Revenue Stream Strategies
India e2W Stakeholder: Business Models
- e2W Sales and Service Business Models
- Charging Infrastructure Business Models
- e2W Fleet Operator Business Models
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Indian Electric Two-Wheeler (e2W) Industry
Scope of Analysis
e2W Segmentation and Definition
Key Competitors
Growth Metrics
Forecast Assumptions
Forecasting Methodology
Growth Drivers
Growth Restraints
The Indian e2W Market: Key Takeaways
The Indian e2W Market: Snapshot
Roadmap of the Indian e2W Market
Overall Market Attractiveness for e2Ws in India
Market Outlook for Indian e2Ws
Key Parameters and Impact Analysis for e2Ws in India
Key Enablers of the Indian e2W Market
OEMs: e2W Sales Comparison
Customer Relevant e2W Specifications for Key Models in India
Comparative Analysis of Top Models from Key Players
India e2W Market: Displacement vs. Range
Top e2W OEM Based on Sales in FY 2024: Benchmarking
Key States’ e2W Growth
Key e2W OEMs and Their Investments Plans
Key e2W OEM’s Growth and Technology Matrix
Mapping the Features of Select e2W OEMs and Start-ups in India
Recent Partnerships Impacting the Market
Recent Partnerships Impacting the Market (continued)
Analysis on the Prospects and Challenges in the Indian e2W Market
Economic Overview: India
PESTLE Analysis of India and Its Impact on the e2W Market
Investment Attractiveness: India
India’s EV Policy Roadmap
New Governmental EV Policy: India
Key Government Regulations: e2W Incentives by State
Swapping Stations: Key State Government Initiatives
EV Policy Comparison for Key States
EV Policy Comparison for Key States: Consumer Incentives
EV Policy Comparison for Key States: Industry Stakeholder (Supplier) Incentives
The Indian e2W Market: Overview
Technology Trends for e2Ws in India
Technology Trends for e2Ws in India (continued)
The Indian e2W Market: Key Challenges
Indian e2WMarket: Comparative Analysis of TCO e2W vs. ICE
The Indian e2W Market: Historic Sales in Volume
The Indian e2W Market: Forecast Sales in Volume
Competitive Landscape of the e2W Market in India
Shift in the Market Share of the e2W Market
Investment Strategies by Legacy 2W Brands in India
Impact Analysis of Foreign e2W Brands Entering India
Impact Analysis of Foreign e2W Brands Entering India (continued)
The Indian e2W Market: OEM Sales
The Indian e2W Market: Market Share by OEM, FY 2022 and FY 2023
Price Impact Analysis: Subsidy Reductions on e2Ws
Price Impact Analysis: Subsidy Reductions on e2Ws (continued)
Main Participants Investing in Start-ups
Key Start-ups in the e2W Ecosystem in India Bagging Funding (2023–24)
Business Model Canvas for the e2W Market
Indian e2W Market: Existing EV Charging Stations
The Indian e2W Market: Select Battery-Swapping Solution Players
The Indian e2W Market: Select Fleet Operating Business Players
The Indian e2W Market: Select e2W Financing Players
The Indian e2W Market: Select e2W Financing Players (continued)
The Indian e2W Market: Select e2W Component Players
The Indian e2W Market: Select Battery Recycling Players
Customer Focus Strategies
Retailing Strategies
Pricing and Incentive Strategies for e2W Market Stakeholders
Product Development and Differentiation Strategies
Exploring New Revenue Stream Strategies
e2W Sales and Service Business Models
Charging Infrastructure Business Models
e2W Fleet Operator Business Models
Growth Opportunity 1: Localization of EV Components
Growth Opportunity 1: Localization of EV Components (continued)
Growth Opportunity 2: Diversification for Creating New Revenue Streams
Growth Opportunity 2: Diversification for Creating New Revenue Streams (continued)
Growth Opportunity 3: Battery Recycling
Growth Opportunity 3: Battery Recycling (continued)
Best Practices Recognition
Frost Radar
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
Legal Disclaimer
- e2W: Growth Metrics, India, FY 2024
- e2W Market: Growth Drivers, India, FY 2025–FY 2030
- e2W Market: Growth Restraints, India, FY 2025–FY 2030
- e2W Market: Outlook, India, 2023
- e2Ws: Key Parameters and Impact Analysis, India
- Annual Sales Comparison by Top e2W OEMs: India, FY 2023 and FY 2024
- FDI Inflows, India 2019–2022
- FAME II Revised Scheme Outlay, 2024
- Two-wheelers: Average Cost Comparison, Country, FY 2024
- Two-wheelers: Average Annual Cost Comparison Breakdown by Major Consumables, Country, FY 2024
- e2Ws: Annual Sales, India, FY 2018–2024
- e2Ws: Annual Sales, India, FY 2025–2030
- Start-ups Disrupting e2Ws: Key Participants, India, 2023
- Indian e2W Financing Solution Providers, India, FY 2023
- Indian e2W Financing Solution Providers, India, FY 2023
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Deliverable Type | Market Research |
---|---|
Author | Shradha Manjrekar |
Industries | Automotive |
No Index | No |
Is Prebook | No |
List of Charts and Figures | e2W: Growth Metrics, India, FY 2024~ e2W Market: Growth Drivers, India, FY 2025–FY 2030~ e2W Market: Growth Restraints, India, FY 2025–FY 2030~ e2W Market: Outlook, India, 2023~ e2Ws: Key Parameters and Impact Analysis, India~ Annual Sales Comparison by Top e2W OEMs: India, FY 2023 and FY 2024~ FDI Inflows, India 2019–2022~ FAME II Revised Scheme Outlay, 2024~ Two-wheelers: Average Cost Comparison, Country, FY 2024~ Two-wheelers: Average Annual Cost Comparison Breakdown by Major Consumables, Country, FY 2024~ e2Ws: Annual Sales, India, FY 2018–2024~ e2Ws: Annual Sales, India, FY 2025–2030~ Start-ups Disrupting e2Ws: Key Participants, India, 2023~ Indian e2W Financing Solution Providers, India, FY 2023~ Indian e2W Financing Solution Providers, India, FY 2023~ |
Podcast | No |
WIP Number | PFK3-01-00-00-00 |