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The India electric two-wheeler market has witnessed remarkable growth in recent years. Driven primarily by factors such as supportive government policies and regulations, the need for personal mobility, increased environmental awareness, and a rise in gasoline prices.

The year 2022 proved to be critical for the expansion of India's electric vehicle (EV) market. The significant increase in the use of battery-powered two-wheelers has principally driven the growth of the country's EV sector. This increase in electric two-wheeler adoption can be attributed to the Indian government, which, through its laws and incentive schemes, played a critical role in providing a much-needed push to this developing EV domain.

The electrification of India's transport sector is positioned to play a major role in ensuring a low-carbon and sustainable future, as transport sector is India's third-largest emitter of greenhouse gases (GHG) and two-wheelers are the most popular means of transportation in the vehicular transport segment, accounting for the bulk of overall vehicle sales. Consumers in both urban and rural India regard two-wheelers as an ideal choice for daily commuting.

Driver: Supportive Government Policies and Regulations

The Indian government has been taking a number of initiatives to promote the adoption of electric vehicles, including electric two-wheelers. These initiatives have proven to be successful and played a pivotal role in the mass adoption of electric vehicles in the country. Some of the major initiatives are:

The government announced the Faster Adoption and Manufacturing of EVs (pure EV & hybrids) in FAME India scheme in 2015 as part of the National Electricity Mobility Mission Plan (NEMMP) 2020 to promote the manufacturing of electric and hybrid vehicle technology and ensure its long-term growth.

The scheme is currently in its second phase, called FAME II, which came into effect in 2019. Subsidies would be provided for 1 million electric two-wheelers under FAME II. The scheme also promotes the installation of charging stations in major cities, including cities with a population of over a million people, smart cities, and cities in hilly areas around the country for ease of access. FAME II has allocated approximately USD 131 million for the installation of EV charging stations.

In addition, the government has introduced a Production Linked Incentive (PLI) scheme with an anticipated outlay of INR 18,100 crores (USD 2.2 billion) in its 2023 annual budget to stimulate demand for Advance Chemistry Cell (ACC) manufacture in India. With this initiative, the government hopes to reduce the cost of EV batteries and, as a result, electric automobiles.

Another PLI scheme for automobiles and auto components with an outlay of INR 25,938 crores (USD 3.1 billion) is expected to help India transition from traditional fossil fuel-based automobile transportation systems to environmentally cleaner, sustainable, advanced, and more efficient electric vehicle (EV)-based systems.

Restraints

Constraints such as a lack of charging infrastructure, the high upfront cost of the vehicle, and the cost of battery replacement make EVs unpopular among Indian consumers. Furthermore, in the absence of widespread marketing techniques emphasizing the impact and significance of EVs, Indian customers are unaware of EVs as a viable alternative to traditional fossil fuel-powered automobiles.

Current Scenario

The country saw a 3X rise in the sales of electric two-wheelers to 7.3 lakh units in FY 2023 from just 2.5 lakh units in FY 2022; the total number of electric vehicles registered in FY 2023 was up by 188% relative to the previous year.

Government incentives and subsidies have once again played a significant role in increasing EV adoption in India. According to Vahan (the national vehicle registry), the impact of the government's subsidy and incentive schemes has been such that the number of two-wheeler companies in the country's EV market has increased from 48 in 2021 to 100 in 2022.

The electric two-wheeler industry in India also experienced a few setbacks after several reported fire accidents, following which the government tightened the battery testing requirements, with the Bureau of Indian Standards (BIS) introducing specified performance norms for EV batteries in India. New/reformed safety standards, AIS 156 and AIS 038 Rev.2, went into effect in October 2022. Additional safety requirements for EV battery cells, battery management systems (BMS), battery pack design, thermal propagation, on-board chargers, and other components are included in these standards.

The Indian government has recently announced its decision to reduce subsidies for electric two-wheelers. This may result in large price increases for electric two-wheelers that are eligible for subsidies under the FAME II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme.

The move can have a significant impact on future sales, as India is a price-sensitive market.

However, the electric two-wheeler market is expected to continue its growth during the forecast period, though at a slower pace compared to the previous couple of years, mainly due to the reduction in FAME II subsidies. But increasing initiatives by the government to develop a robust and efficient ecosystem for electric vehicles to achieve the EV penetration target of 80% in two- and three-wheelers segment are expected to promote EV adoption.

Segment Performance

The market is segmented based on vehicle type, which involves categorizing the market into two main segments: electric scooters/mopeds and e-motorcycles.

E-scooters registered higher sales relative to e-motorcycles and are dominating the electric two wheeler market due to reduced upfront costs and the availability of more models in the market, giving customers plenty of alternatives. The appeal of the e-scooter as a possible mode of transportation is pushing its adoption. However, electric motorcycle market is also picking up pace in the country.

Opportunities

• Recycling presents a promising avenue for India, offering the chance to decrease reliance on imports while simultaneously capitalizing on the domestic market. In addition, Indian companies have the remarkable potential to cater to the needs of global electric vehicle (EV) players. With the demand for EVs steadily on the rise, there is an opportune moment to refine the technology and embark on servicing this thriving sector.
• Considering mounting apprehensions regarding the limited availability of metals such as lithium and cobalt for lithium-ion batteries, alternative technologies like sodium-ion are gaining attention as potential substitutes. Reliance Industries has taken a significant stride in this direction by solidifying its interest in India through the recent acquisition of Faradion, a distinguished sodium-ion battery manufacturer based in the UK.
• With the rapid expansion of electric vehicles (EVs), the involvement of local suppliers will become increasingly crucial. Not only are Indian companies capitalizing on this opportunity, but it is also being seized by numerous global players, recognizing the potential for growth in this domain.
• The increasing adoption of EVs also offers opportunities for software enterprises, as EVs rely on embedded software. Batteries and motors are the most critical components of an EV and are primarily managed by a battery management unit and electric motor controller that run on software.

Recent Trends and Major Developments

• Rising EV 2-wheeler rental services: The surge in EV rental services in India can be attributed to the escalating demand for affordable and environmentally friendly transportation solutions. As fuel costs continue to soar and apprehensions about air pollution intensify, an increasing number of individuals are embracing electric vehicles as a sustainable substitute for intracity commuting.
• The government reduces the FAME II subsidies, which will come into effect on June 1, 2023. The move is expected to increase the price of electric two-wheelers, which were hitherto covered under the subsidy scheme.
• In May 2023, Hyundai Motor Co. of South Korea announced intentions to invest USD 2.45 billion over ten years in the southern state of Tamil Nadu to enhance production and introduce new electric vehicle models. It also intends to build a battery pack assembly plant with an annual capacity of 178,000 units and to establish 100 EV charging stations throughout the state.
• Electric transportation startup based in Mumbai Liger Mobility unveiled a revolutionary self-balancing scooter as a new breakthrough at Auto Expo 2023 held in Delhi. The Auto Balancing System was developed in-house by the company and assists the rider in balancing the scooter at moderate speeds or when stationary. Liger is set to go into production in later 2023.
• Hero MotoCorp announced plans to expand the presence of its VIDA electric scooter line to 100 cities by 2023. The business also announced a Rs 20,000 price decrease for the VIDA VI Plus and VIDA VI Pro scooters.
• EV startup located in Bengaluru Simple Energy has launched the Simple One electric scooter from its Shoolagiri manufacturing site in Tamil Nadu, India. The company intends to offer one of the most extensive ranges among electric two-wheelers.

The new report from Blackridge Research on the India Electric Two-Wheelers Market comprehensively analyses the Electric Two-Wheelers Market and provides deep insight into the current and future state of the industry.

The study examines the drivers, restraints, and regional trends influencing India Electric Two-Wheelers Market demand and growth.

The report also addresses present and future market opportunities, market trends, developments, the impact of COVID-19 on the India Electric Two Wheelers Market, important commercial developments, trends, regions, and segments poised for the fastest growth, the competitive landscape, and the market share of key players.

Further, the report will also provide India electric two-wheeler market size, demand forecast, and growth rates.

What Do We Cover in the Report?

India Electric Two-Wheelers Market Drivers and Restraints

The study covers all the major underlying forces that help the market develop and grow and the factors that constrain India market growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and as a guide for you to analyze the degree of impact.

India Electric Two-Wheelers Market Analysis

This report discusses an overview of the market, the latest updates, important commercial developments and structural trends, and government policies and regulations.

India Electric Two-Wheelers Market Size and Demand Forecast

The report provides India Electric Two-Wheelers Market size and demand forecast until 2028, including year-on-year (YoY) growth rates and CAGR.

India Electric Two-Wheelers Market Industry Analysis

The report examines the critical elements of the India Electric Two-Wheelers Industry supply chain, its structure, and the participants.

India Electric Two-Wheelers Market Segmentation and Forecast

The report comprehensively analyses the electric two-wheeler market by segmenting it based on vehicle type (electric scooter, electric motorcycle). A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.

Key Company Profiles

This report presents detailed profiles of key companies in the India Electric Two-Wheelers industry. Some of the major players include Hero Electric Vehicles Pvt. Ltd., Ather Energy Pvt. Ltd., Ola Electric Mobility Pvt. Ltd., Okinawa Autotech, Bajaj Auto Ltd., TVS Motor Co., etc. Generally, each company profile includes an overview of the company, relevant products, upcoming electric bikes and services, a financial overview, and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

The executive summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an executive summary chapter and ends with conclusions and recommendations.

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