Sales of electric scooters and motorcycles in India jumped significantly in 2023. Electric vehicle sales increased by 33.5% to a new record of 866,853 sales. Ola Electric holds the largest share (25%) of this market with 228,700 sales (an increase of +110.4%) last year. In 2023, TVS Motor grew by +210.2% by selling 183.543 units. The iQube is their best-selling electric scooter model. Sales of Ather EVs increased by +116.2% with 119,318 units sold. Bajaj Auto also witnessed a +202.9% rise in sales last year.
A total of 81,963 electric two-wheelers were sold in February 2024. @OlaElectric’s market share has risen to 41%.
What are the Reasons for the Whopping Growth of Electric Scooters and Motorcycles in India?
There are two main reasons for this meteoric rise in demand for electric scooters and motorcycles in India. Firstly, experts believe that the Indian government’s EV promotional policy in the form of FAME II subsidies is the main factor for this phenomenal growth. Secondly, many ambitious startups have emerged. This is because of the strong government incentives for locally produced EVs and components made in India.
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Projected Growth of Electric Scooters and Motorcycles in India Till 2030
Projections by leading business consultancy firms suggest that the sales of electric scooters and motorcycles in India will continue to rise.
- According to the McKinsey report, electric two-wheelers in India are expected to be 60-70% of new sales in 2030.
- A report by Redseer Strategy Consultants in early 2023 claimed that electric two-wheeler sales will increase from 8.46 lakhs to 220 lakhs during 2022-2030. It is a whopping 26 times jump in sales in just 8 years.
- The overall EV penetration in the automobile market will also increase significantly in the coming years. In CY2022, the EV penetration in the two-wheeler market was 3.2%. A new 2023 report by Bain & Company and Blume Ventures has claimed that the E2W or electric two-wheeler market penetration is likely to jump to 45% by 2030.
These statistics show how electric scooters and motorcycles have the potential to transform the transportation landscape in India.
Final Word
The phenomenal rise of electric two-wheelers in India represents a significant milestone in the eco-friendly and sustainable transportation journey. Urban mobility is witnessing a paradigm shift with the rise of EVs. With the supporting FAME II subsidies and PLI schemes from the Indian government, increasing awareness among consumers, and soaring sales figures for electric scooters and motorcycles, India is moving towards an era that will witness less impact on the environment by traditional petrol/diesel-powered two-wheelers.
With a larger penetration of electric vehicles in the massive 2-wheeler market segment in India, the country will be able to achieve its commitment to the 2015 Paris Agreement. Transitioning to electric vehicles will help India enjoy reduced CO2 emissions, cleaner air, and improved public health.
However, challenges to widespread EV two-wheelers remain. Two major factors are highly inadequate charging infrastructure and cost barriers. In the next few years, India needs a wider collaboration among government, industry, and consumers to overcome these challenges.
The two-wheeler market in India is estimated to become US$ 299.18 billion in 2024 and further increase to US$ 347.41 billion by 2029. In 2022, the penetration of EVs was just 3.2%. If India succeeds in increasing its EV penetration to 45% of the two-wheeler market by 2030 (as per the projections by Bain & Company and Blume Ventures), it could decrease CO2 emissions to a large extent. The phenomenal rise in electric scooters and motorcycles in India is a positive step towards an ecologically friendly, sustainable, and greener future.
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