Over the years, the market for two-wheelers has experienced a tremendous increase in sales. This could be owing to factors like price and ease that this vehicle provides. The electric two-wheeler has been given an eco-friendly facelift to make it more environmentally friendly. In this article, we will have a look at the electric two-wheelers in India in context to their market size.
By 2030, India wants to be completely electrified. To meet this goal, the government is shifting its focus to cleaner modes of transportation and personal mobility.
Several well-known brands, including Mahindra Electric and Hero Motocorp Ltd., are rapidly expanding their presence in this market. Startups are also not far behind. Over the years, newer companies such as Ola Electric, Okinawa Autotech, and Ather Energy have seen stronger sales growth.
In terms of electric two-wheeler sales, there has been a lot of enthusiasm in the previous few months in India. In November 2021, reported EV two-wheeler sales increased by more than 5 times, with more than 22,500 units sold compared to 4000 units sold in November the previous year.
The electric two-wheelers in India are predicted to develop at a robust compounded annual growth rate of 75-80% between FY22 and FY25, according to India Rating & Research.
Manufacturers of electric two-wheelers in India in 2022
Manufacturers of electric two-wheelers in India in 2022
In India, Hero Electric is the market leader in the electric two-wheeler (E2W) segment. It is a subsidiary of Hero MotoCorp, a multi-business conglomerate with interests ranging from electric vehicles to exports to bicycles to healthcare and real estate.
In 2017, Hero Electric released its first scooter powered by lithium-ion batteries. The corporation currently has 600+ dealership networks around the country, with locations in over 325 cities. During October and November of 2021, the company sold roughly 24,000 electric scooters, compared to 11,400 units during the same period the previous year.
Hero Electric has recently partnered with BattWheelz Mobility, a Gurugram-based start-up, intending to deliver 4,000 electric two-wheelers by FY 2022-23. Multiple rounds of funding have recently been completed for the company. In June, the company raised roughly $30 million from Gulf Islamic Investments and previous investor OAKS Asset Management in its most recent round. The goal was to increase manufacturing capacity, strengthen its market position, invest in new technologies, and expand its footprint in emerging areas like India.
Bajaj Auto Ltd.
Bajaj Auto Limited is a multinational two- and three-wheeler manufacturer based in India. The firm is a subsidiary of the Bajaj Group. It is the world’s third-largest motorcycle manufacturer, as well as India’s second-largest. The corporation restated its commitment to a healthier environment but added that the transition to cleaner fuels will most likely include CNG in addition to EVs. It’s a publicly-traded firm with a market capitalization of Rs 91,978 crores.
Bajaj Auto Limited introduced its first e-scooter, the Chetak, in January 2020, with two models: Urbane and Premium. The company has gained a 4% market share in the electric two-wheeler industry since the launch of the electric car. Bajaj Auto has begun testing a new electric scooter that will be unveiled soon.
TVS Motor Company Ltd.
TVS Motor Company Ltd is India’s third-largest two-wheeler manufacturer and one of the world’s top ten. In developing markets such as Latin America, South Asia, the Middle East, and Africa, it has a major presence.
The incorporation of TVS Electric Mobility Limited was announced by TVS Motor to the stock exchanges. This division of the business will concentrate on the manufacturing of electric vehicles. To expand its footprint in the sector, the company has formed a co-production agreement with BMW Motorrad to build electric vehicles. TVs and Tata Power have formed strategic cooperation to build electric charging infrastructure across the country.
The TVS iQube is the TVS group’s first electric two-wheeler. In the electric two-wheeler sector, the business controls about 2% of the market.
Top Indian Electric Vehicle Startups
Many startups have recently emerged in the electric two-wheelers in india. Here are the top unlisted companies in the sector with a substantial market share.
Okinawa Autotech Pvt Ltd. is a Haryana-based electric two-wheeler company. Currently, the company has 24 dealerships and wants to add 450 dealerships around the country over the next few years. It’s an established player in the electric two-wheeler market. The company just reached a new sales milestone in India, surpassing 100,000 units sold.
In the electric two-wheeler segment, it was ranked second in terms of sales. From January to November 2021, the company sold 23,899 units, an increase of 329% year over year. This gives it a 17% market share. The company sells an average of 4,257 units every month. It reached a monthly high of 5,421 units in November.
Ather Energy Pvt. Ltd. is an EV manufacturer that was launched in 2013. In the Top 25 EV OEM list, the fast-growing Bangalore-based company is ranked third. It is funded by Hero MotorCorp, which owns about a third of the company. In the electric two-wheeler business, Ather has a market share of about 11%.
In the first 11 months of the previous year, the smart e-scooter manufacturer sold 14,152 units. Even though the firm only offers two versions – the Ather 450X and 450 Plus – demand has increased. Aside from investing in its fast-charging network, Ather Grid 2.0, the OEM is also working on a low-cost e-scooter that is expected to increase sales.
Every month, Ather adds more fast-charging stations to its increasing network, with a goal of 500 by the end of the year.
The name PURENERGY stands for Power Using Renewable Energy, and the company’s major goal is to facilitate the shift to sustainable energy sources. Under the brand “PURE EV,” the company began producing electric two-wheelers, as well as high-performance Lithium batteries under the brand “PURE Lithium.” They are working on the roadmap to becoming one of India’s premier electric vehicle companies in the future! Pure EV is in fourth place, with 9,363 units sold. Their success is significant, as it has risen three positions during FY20, from seventh to sixth.
Ola Electric Mobility is a Bangalore-based electric two-wheeler manufacturer in India. It was spun off from Ola in 2019 and began delivering electric scooters in December. Unicorn Electric Vehicles is on the verge of becoming public. The company’s authorized share capital has been increased by 17,121%.
The Ola S1 e-scooter from Ola Electric has gotten a lot of attention. After opening the buying window in September, the corporation began delivering in December of 2021.
In India, the electric vehicle segment is still in its infancy. According to a report by Avendus Capital, the market in India is predicted to be worth Rs 50,000 crore by 2025, with two- and three-wheelers expected to drive increasing electrification of vehicles in the medium term as a result of COVID-19.
This presents a big potential for investors, as electric vehicles appear to be the way of the future in the automotive industry. This can be seen in the strategies used by businesses to join the market. Honda Motorcycle and Scooters India have announced plans to launch an electric scooter in the coming fiscal year.