India’s Electric Two-Wheeler Market to Grow at 41 per cent CAGR by 2023
Some major factors that would boost the demand for electric two-wheelers include Government incentive schemes, growing dealership network and increasing affordability
On account of rising need to curb air pollution levels all over the country, India’s electric two-wheeler market is estimated to grow at a compound annual growth rate (CAGR) of more than 41 per cent by 2023, according to a latest report by Research and Markets.
Some major factors that would boost the demand for electric two-wheelers in the country include Government incentive schemes for electric vehicles (EV), rising online sales, growing dealership and distributor network and increasing affordability of EVs being offered by leading automotive manufacturers, the report said.
In addition, growing activities in research & development (R&D) are likely to result in a broader product portfolio for electric two-wheelers, thus positively impacting the electric two-wheeler market in the country in the next five years.
The major companies operating in the electric two-wheeler segment in India include Hero Electric Vehicles, Mahindra Two Wheelers, Honda Motorcycle & Scooter India, Ampere Vehicles, Tunwal E-Bike India, NDS Eco Motors, etc. All these auto majors are strengthening their distributor and dealership network in order to enhance their customer reach.
Hero Electric, TVS Motor, Honda Motorcycle & Scooter India, Mahindra Two Wheelers, Bajaj Auto and Yamaha all have lined up launches of electric two-wheelers from this year. On the other hand, the Government has set an ambitious target to transition the 30 per cent of the vehicles to electric vehicles by 2030.
In fact, the two-wheeler segment in India has gained a head start with players like Hero Electric and Electrotherm selling electric scooters in the country for several years now.
In the past eight years, around 4,50,000 electric two-wheelers were sold in the country. There is a huge potential of EVs in the two-wheeler segment, given that over 17 million two-wheelers are sold every year in the country.