With Few Options Like Ultraviolette F77, India Pushes Electric Motorcycles Ahead of EV Incentives Ending in Seven Months
India is stepping up efforts to accelerate the production of electric motorcycles, a segment still largely absent from the market, before the government’s incentive program for electric two-wheelers expires in seven months.
Although it is unlikely that fresh models of e-motorcycles will reach showrooms before the end of March 2026, when the current subsidy scheme concludes, policymakers hope ongoing consultations will shed light on industry challenges and help shape strategies to fast-track India’s transition to electric mobility.
According to two people aware of the matter, Niti Aayog, the central government’s policy think tank, is spearheading discussions with stakeholders to identify ways to expand e-motorcycle production. Unlike scooters, which have dominated India’s electric two-wheeler market, motorcycles remain a vastly untapped opportunity.
“India’s two-wheeler market is massive, and motorcycles form its backbone. Targeting this segment could significantly accelerate EV adoption,” said one of the people involved in the consultations.
Untapped opportunity in motorcycles
Niti Aayog’s August 2025 report, Unlocking a $200 Billion Opportunity: Electric Vehicles in India, underscored that motorcycles—popular with younger consumers—can play a pivotal role in replacing petrol two-wheelers with electric ones. Yet, the report noted that India’s EV sales are still overwhelmingly dominated by scooters, with e-motorcycles accounting for only a fraction.
In FY25, India sold over 1.14 million electric two-wheelers—a record number second only to petrol models—with subsidies under the ₹10,900 crore PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme claimed for more than 600,000 units. Despite these figures, motorcycles have barely benefited from this support, even though India remains the world’s largest two-wheeler market, clocking 18.8 million overall sales in FY25.
Limited players, high development costs
Only a handful of companies currently manufacture electric motorcycles in India. Revolt Motors, Matter Motors, and Ultraviolette are among the few active players, while Bengaluru-based Ola Electric began deliveries of its Roadster series in June. Larger legacy manufacturers such as Hero MotoCorp, Bajaj Auto, and TVS Motor Company have yet to enter the e-motorcycle segment.
Industry discussions have explored both manufacturing strategies and potential financial incentives. “Developing an e-bike is more challenging than building an e-scooter,” said a second person familiar with the talks. “There were also conversations about how to improve public charging infrastructure since residential chargers for two-wheelers face pushback from housing associations.”
Incentive schemes face hurdles
While electric motorcycle makers are eligible under the ₹25,938 crore production-linked incentive (PLI-Auto) scheme for automobiles and auto components, stringent localisation requirements have deterred participation. None of the 17 firms approved under PLI-Auto currently has incentives for e-motorcycle production.
The high cost of developing e-motorcycles remains a major barrier. Limited chassis space restricts battery size, while motorcycles require higher speed and performance levels than scooters—demanding significant research, engineering expertise, and testing. These factors translate to elevated prices for consumers.
“Leading motorcycle companies have adopted a cautious approach to entering the electric market,” said Randheer Singh, former electric mobility director at Niti Aayog and CEO of ForeSee Advisors. “They are prioritising robust supply chains and aftermarket support for cost efficiency. By contrast, newer entrants often rush products to market to achieve profitability quickly. Established players tend to spend more time validating technology and consumer sentiment before launching.”
Looking ahead
The consultations led by Niti Aayog aim to address these bottlenecks and lay the groundwork for boosting motorcycle electrification. However, unless quick policy action follows, India risks missing an opportunity to electrify its largest vehicle segment before subsidies taper off.
