India Electric Two-Wheeler Market –Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Scooter/ Moped, Motorcycle), By Battery Type (Swappable, Non-Swappable), By Battery Capacity Type (<2 kWh, 2-2.5 kWh, >2.5 kWh), By Range (<50 km, 50-100 km, 101-150 km, >150 km), By Region, By Competition, 2019-2029F

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Summary

Report Description

Forecast Period

2025-2029

Market Size (2023)

USD 468.05 Million

CAGR (2024-2029)

32.70%

Fastest Growing Segment

Scooter/ Moped

Largest Market

South India

Market Size (2029)

USD 2555.78 Million

Market Overview

The India Electric Two-Wheeler market was valued at USD 468.05 Million in 2023 and is expected to reach USD 2555.78 Million by 2029 with a CAGR of 32.70% during the forecast period. The electric two-wheeler market in India has gained significant momentum due to a combination of strong growth drivers. Rising fuel prices, environmental concerns, and government policies aimed at promoting electric mobility are key factors fueling the shift towards electric two-wheelers. The government's initiatives, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and incentives under the Production-Linked Incentive (PLI) scheme, have created a supportive ecosystem for electric vehicle manufacturers. Furthermore, as urbanization increases, the demand for more affordable and eco-friendly transportation options in crowded cities is growing. These vehicles offer a practical solution, especially with their lower operating costs, reduced emissions, and ability to navigate through congested traffic more efficiently.

The market is also benefiting from technological advancements in battery systems, such as improvements in energy density and charging speed, which have enhanced the overall performance and convenience of electric two-wheelers. The development of more accessible and widespread charging infrastructure has further encouraged adoption. Another key trend is the rise of new players and startups in the electric vehicle space, bringing innovative designs, models, and features to attract a wider customer base. Consumer preferences are evolving, with an increasing inclination towards electric bikes and scooters due to their cost-effectiveness in the long term, ease of maintenance, and the growing environmental consciousness of the younger generation.

Despite the promising outlook, the industry faces a few challenges. The high initial cost of electric two-wheelers, largely driven by battery prices, remains a significant barrier to widespread adoption. While government incentives help offset this cost, price sensitivity among the masses continues to be a challenge. Furthermore, the limited range of electric two-wheelers and concerns over charging infrastructure in rural and semi-urban areas also hinder adoption. However, opportunities remain abundant in this sector, with the potential for the development of more affordable, long-range models and further expansion of charging networks. With a growing commitment from both private players and the government to address these issues, the Indian electric two-wheeler market is poised for significant growth in the forecast period 2025-2029.

Market Drivers

Government Incentives and Policy Support

The Indian government plays a pivotal role in driving the growth of the electric two-wheeler market through various policies and incentives. Schemes like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) provide financial support to manufacturers and consumers. The Production-Linked Incentive (PLI) scheme further incentivizes the production of electric vehicles, encouraging domestic manufacturing. These initiatives significantly reduce the cost burden for both consumers and manufacturers, promoting the widespread adoption of electric two-wheelers. For instance, In September 2024, the Minister of Heavy Industries for the Indian Union announced the forthcoming launch of the PM E-DRIVE subsidy scheme aimed at electric two-wheelers. Under this initiative, purchasers will be eligible for a maximum subsidy of up to USD 118.5 during the inaugural year of the PM E-DRIVE Scheme. The minister further elaborated that the subsidy for electric two-wheelers is determined by battery power, set at USD 59.25 per kilowatt hour, although the total incentive will be capped at USD 118.5 in the first year.

Rising Fuel Prices and Environmental Concerns

Escalating fuel prices, coupled with the growing awareness of environmental degradation, are pushing consumers toward more sustainable transportation solutions. Electric two-wheelers, with their lower running costs and zero emissions, present an attractive alternative to traditional gasoline-powered vehicles. As fuel costs continue to rise and the urgency to reduce carbon footprints intensifies, electric two-wheelers are seen as a practical and eco-friendly solution for urban commuters.


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Key Market Challenges

High Initial Purchase Cost

One of the most significant challenges for the Indian electric two-wheeler market is the high upfront cost compared to conventional vehicles. While operational costs of electric vehicles are lower, the price of the battery is still a substantial portion of the total cost, making electric-wheelers less affordable for the average consumer. Even with government subsidies, the initial investment remains a barrier, especially in price-sensitive markets.

Underdeveloped Charging Infrastructure

Despite significant improvements in charging infrastructure, many areas, particularly rural and semi-urban locations, still lack sufficient charging stations. This underdevelopment is a major deterrent for prospective electric two-wheeler buyers who fear being stranded without a charging point. The expansion of charging infrastructure is essential to making electric two-wheelers a practical and convenient choice for all consumers.

Key Market Trends

Rise of EV Startups and Innovation

The electric two-wheeler market in India is seeing the rise of numerous startups that are introducing innovative products and models. These companies are bringing fresh designs, enhanced features, and affordable pricing to appeal to a wider consumer base. With a focus on offering a range of electric bikes and scooters that cater to varying needs from performance-driven models to budget-friendly options startups are rapidly shaping the market's evolution. For instance, the number of electric two-wheeler startups in India has surged from 54 in 2021 to over 150, driven by government initiatives to promote clean vehicles and reduce oil imports. Startups now hold seven of the top ten market positions, with Ola Electric leading at a 39% market share as of January 2024. The top five companies account for about 85% of total sales.

Growing E-commerce and Quick Commerce Boosting Demand

The rapid growth of e-commerce and quick commerce in India is driving demand for electric two-wheelers, particularly in last-mile delivery services. Companies in the logistics, food delivery, and e-commerce sectors are adopting electric two-wheelers to reduce operational costs, enhance delivery efficiency, and align with sustainability goals. The low operational costs and zero emissions of electric vehicles make them an attractive option for delivery fleets, while their maneuverability in crowded urban areas enhances delivery speed. As the demand for online shopping and fast deliveries continues to rise, electric two-wheelers are becoming a key solution for businesses looking to meet these demands in a cost-effective and eco-friendly manner.

Segmental Insights

Vehicle Type Insights

The Indian electric two-wheeler market is divided into electric scooters/mopeds and motorcycles, each serving different consumer needs. Electric scooters and mopeds are popular in urban and semi-urban areas due to their affordability, ease of use, and suitability for short-distance commutes. They are lightweight, easy to ride, and cost-effective, making them ideal for city dwellers looking for an eco-friendly alternative to traditional two-wheelers. These vehicles are typically designed for daily travel, offering low maintenance and reduced operating costs.

Electric motorcycles cater to consumers seeking higher performance, longer ranges, and more powerful engines. These bikes appeal to a broader audience, including those looking for versatility, speed, and the ability to travel longer distances. With advancements in battery technology, electric motorcycles are becoming more competitive with traditional gasoline-powered bikes in terms of performance and range. They offer greater power, making them suitable for both city commuting and longer trips.

Both segments benefit from ongoing innovations in battery efficiency, faster charging, and improved energy management. While electric scooters and mopeds focus on affordability and convenience, electric motorcycles prioritize performance and versatility. The diversity in these vehicle types allows them to meet the varying needs of consumers, from cost-conscious city commuters to performance-driven riders.

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Region Insights

In 2023, South India stands out as the dominant region in the electric two-wheeler market, driven by progressive government policies, strong environmental awareness, and a well-developed infrastructure for electric vehicles. States like Tamil Nadu, Karnataka, and Kerala have introduced incentives and subsidies that encourage both manufacturers and consumers to adopt electric two-wheelers. These efforts, along with favorable tax benefits, have accelerated the transition to electric mobility in the region.

Urbanization in cities such as Chennai, Bengaluru, and Kochi has made electric two-wheelers an attractive option for daily commuting, particularly due to traffic congestion and rising fuel costs. The growing availability of charging stations has addressed range anxiety, making electric vehicles more practical for residents. Additionally, South India’s eco-conscious consumer base, especially among younger populations, is fueling demand for sustainable transportation.

The region’s focus on infrastructure development, alongside public and private investments, has further boosted electric two-wheeler adoption. Lower operational costs, minimal maintenance, and pollution-free riding make electric vehicles a cost-effective choice for South Indian commuters. As government support continues and awareness grows, South India is expected to remain the leading region for electric two-wheelers in India.

Recent Developments

  • In 2024, Honda R&D India Pvt. Ltd., a subsidiary of Honda Motor Company, officially opened its new Solution R&D Centre in Bengaluru, Karnataka. This facility will focus on the development of the brand's forthcoming electric motorcycles and scooters. Honda is poised to launch its first electric two-wheelers in India in 2024, and the new R&D centre is expected to be instrumental in this initiative.
  • India's electric vehicle (EV) market experienced substantial growth in 2023, with sales rising to 123,362 units, compared to 83,353 units in 2022, reflecting an increase of 47.99 percent. The two-wheeler segment is anticipated to spearhead the country's transition to electric mobility, with projections indicating that 50-60 percent of total demand will shift to electric vehicles by 2030.
  • In March 2024, Sokudo Electric, a prominent producer of electric two-wheelers (E2Ws), revealed plans to establish a state-of-the-art motor and controller facility covering 20,000 square feet in Greater Noida, Uttar Pradesh. This strategic initiative is designed to enhance the company's ability to create new patented models that incorporate advanced technologies, such as IoT-based features, upgraded CAN software, and improved hardware functionalities, in response to the growing demand for smart two-wheelers.

Key Market Players

  • Hero Electric Vehicles Pvt. Ltd
  • Okinawa Autotech International Private Limited
  • Greaves Electric Mobility Private Limited
  • Ather Energy Limited
  • PuR Energy Pvt. Ltd
  • Ola Electric Mobility Ltd
  • TVS Motor Company
  • Revolt Intellicorp Private Limited
  • BENLING INDIA ENERGY AND TECHNOLOGY PVT LTD
  • Bajaj Auto Ltd

By Vehicle Type

By Battery Type

By Battery Capacity

 

 

By Range

 

 

By Region

 
  • Scooter/ Moped
  • Motorcycle
  • Swappable
  • Non-Swappable
  • < 2 kWh
  • 2-2.5 kWh
  • >2.5 kWh
  • <50 km
  • 50-100 km
  • 101-150 km
  • >150 km
  • North India
  • South India
  • East India
  • West India

 

 

Report Scope:

In this report, the India Electric Two-Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         India Electric Two-Wheeler Market, By Vehicle Type:

o   Scooter/ Moped

o   Motorcycle

·         India Electric Two-Wheeler Market, By Battery Type:

o   Swappable

o   Non-Swappable

·         India Electric Two-Wheeler Market, By Battery Capacity:

o   <2 kWh

o   2-2.5 kWh

o   >2.5 kWh

·         India Electric Two-Wheeler Market, By Range:

o   <50 km

o   50-100 km

o   101-150 km

o   >150 km

·         India Electric Two-Wheeler Market, By Region:

o   North India

o   South India

o   East India

o   West India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Electric Two-Wheeler Market.

Available Customizations:

India Electric Two-Wheeler Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).
India Electric Two-Wheeler Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Market Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.     Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.     Executive Summary      

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Countries

3.4.  Key Segments

4.     Voice of Customer

4.1.  Factors Influencing Purchase Decision

4.2.  Sources of Information

5.    India Electric Two-Wheeler Market Outlook

5.1.  Market Size & Forecast

5.1.1.     By Value & Volume

5.2.  Market Share & Forecast

5.2.1.     By Vehicle Type Market Share Analysis (Scooter/ Moped, Motorcycle)

5.2.2.    By Battery Type Market Share Analysis (Swappable, Non-Swappable)

5.2.3.    By Battery Capacity Market Share Analysis (<2 kWh, 2-2.5 kWh, >2.5 kWh)

5.2.4.    By Range Market Share Analysis (<50 km, 50-100 km, 101-150 km, >150 km)

5.2.5.    By Region Market Share Analysis

5.2.5.1. North India Market Share Analysis

5.2.5.2. South India Market Share Analysis

5.2.5.3. East India Market Share Analysis

5.2.5.4. West India Market Share Analysis

5.2.6.    By Top 5 Companies Market Share Analysis, Others (2023)

5.3.  India Electric Two-Wheeler Market Mapping & Opportunity Assessment

5.3.1.    By Vehicle Type Market Mapping & Opportunity Assessment

5.3.2.    By Battery Type Market Mapping & Opportunity Assessment

5.3.3.    By Battery Capacity Market Mapping & Opportunity Assessment

5.3.4.    By Range Market Mapping & Opportunity Assessment

5.3.5.    By Region Market Mapping & Opportunity Assessment

6.    North India Electric Two-Wheeler Market Outlook

6.1.  Market Size & Forecast

6.1.1.     By Value & Volume

6.2.  Market Share & Forecast

6.2.1.     By Vehicle Type Market Share Analysis

6.2.2.     By Battery Type Market Share Analysis

6.2.3.     By Battery Capacity Market Share Analysis

6.2.4.     By Range Market Share Analysis

7.    South India Electric Two-Wheeler Market Outlook

7.1.  Market Size & Forecast

7.1.1.     By Value & Volume

7.2.  Market Share & Forecast

7.2.1.     By Vehicle Type Market Share Analysis

7.2.2.     By Battery Type Market Share Analysis

7.2.3.     By Battery Capacity Market Share Analysis

7.2.4.     By Range Market Share Analysis

8.    East India Two-Wheeler Market Outlook

8.1.  Market Size & Forecast

8.1.1.     By Value & Volume

8.2.  Market Share & Forecast

8.2.1.     By Vehicle Type Market Share Analysis

8.2.2.     By Battery Type Market Share Analysis

8.2.3.     By Battery Capacity Market Share Analysis

8.2.4.     By Range Market Share Analysis

9.    West India Electric Two-Wheeler Market Outlook

9.1.  Market Size & Forecast

9.1.1.     By Value & Volume

9.2.  Market Share & Forecast

9.2.1.     By Vehicle Type Market Share Analysis

9.2.2.     By Battery Type Market Share Analysis

9.2.3.     By Battery Capacity Market Share Analysis

9.2.4.     By Range Market Share Analysis

10.  Market Dynamics

10.1.  Drivers

10.2.  Challenges

11.  Impact of COVID-19 on India Electric Two-Wheeler Market

11.1.  Impact Assessment Model

11.1.1.  Key Segments Impacted

11.1.2.  Key Regions impacted

12.  Market Trends & Developments

13.  Competitive Landscape

13.1.  Company Profiles

13.1.1.  Hero Electric Vehicles Pvt. Ltd

13.1.1.1.      Company Details

13.1.1.2.      Products

13.1.1.3.      Financials (As Per Availability)

13.1.1.4.      Key Market Focus & Geographical Presence

13.1.1.5.      Recent Developments

13.1.1.6.      Key Management Personnel

13.1.2.  Okinawa Autotech International Private Limited

13.1.2.1.      Company Details

13.1.2.2.      Products

13.1.2.3.      Financials (As Per Availability)

13.1.2.4.      Key Market Focus & Geographical Presence

13.1.2.5.      Recent Developments

13.1.2.6.      Key Management Personnel

13.1.3.  Greaves Electric Mobility Private Limited

13.1.3.1.      Company Details

13.1.3.2.      Products

13.1.3.3.      Financials (As Per Availability)

13.1.3.4.      Key Market Focus & Geographical Presence

13.1.3.5.      Recent Developments

13.1.3.6.      Key Management Personnel

13.1.4.  Ather Energy Limited

13.1.4.1.      Company Details

13.1.4.2.      Products

13.1.4.3.      Financials (As Per Availability)

13.1.4.4.      Key Market Focus & Geographical Presence

13.1.4.5.      Recent Developments

13.1.4.6.      Key Management Personnel

13.1.5.  PuR Energy Pvt. Ltd

13.1.5.1.      Company Details

13.1.5.2.      Products

13.1.5.3.      Financials (As Per Availability)

13.1.5.4.      Key Market Focus & Geographical Presence

13.1.5.5.      Recent Developments

13.1.5.6.      Key Management Personnel

13.1.6.  Ola Electric Mobility Ltd

13.1.6.1.      Company Details

13.1.6.2.      Products

13.1.6.3.      Financials (As Per Availability)

13.1.6.4.      Key Market Focus & Geographical Presence

13.1.6.5.      Recent Developments

13.1.6.6.      Key Management Personnel

13.1.7.  TVS Motor Company

13.1.7.1.      Company Details

13.1.7.2.      Products

13.1.7.3.      Financials (As Per Availability)

13.1.7.4.      Key Market Focus & Geographical Presence

13.1.7.5.      Recent Developments

13.1.7.6.      Key Management Personnel

13.1.8.  Revolt Intellicorp Private Limited

13.1.8.1.      Company Details

13.1.8.2.      Products

13.1.8.3.      Financials (As Per Availability)

13.1.8.4.      Key Market Focus & Geographical Presence

13.1.8.5.      Recent Developments

13.1.8.6.      Key Management Personnel

13.1.9.  BENLING INDIA ENERGY AND TECHNOLOGY PVT LTD

13.1.9.1.      Company Details

13.1.9.2.      Products

13.1.9.3.      Financials (As Per Availability)

13.1.9.4.      Key Market Focus & Geographical Presence

13.1.9.5.      Recent Developments

13.1.9.6.      Key Management Personnel

13.1.10.  Bajaj Auto Ltd

13.1.10.1.   Company Details

13.1.10.2.   Products

13.1.10.3.   Financials (As Per Availability)

13.1.10.4.   Key Market Focus & Geographical Presence

13.1.10.5.   Recent Developments

13.1.10.6.   Key Management Personnel

14.  Strategic Recommendations/Action Plan

14.1.  Key Focus Areas

14.1.1.  Target Vehicle Type

14.1.2.  Target Battery Type

14.1.3.  Target Battery Capacity

14.1.4.  Target Range

15.  About Us & Disclaimer

 

Figures and Tables

Frequently asked questions

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The market size of the India Electric Two-Wheeler Market was estimated to be USD 468.05 Million in 2023.

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Key drivers for the India electric two-wheeler market include government incentives, rising fuel costs pushing consumers toward affordable alternatives, and growing environmental awareness. Advancements in battery technology and charging infrastructure also support adoption. Additionally, the demand for sustainable last-mile delivery solutions is driving growth.

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In 2023, electric scooters and mopeds emerged as the fastest-growing segment in the India electric two-wheeler market. Their popularity was driven by affordability, ease of use, and suitability for short urban commutes. Additionally, rising fuel prices and government incentives further accelerated the adoption of electric scooters and mopeds among cost-conscious consumers.

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In 2023, South India is the dominant region in the India electric two-wheeler market. Government incentives, a strong focus on sustainability, and rapidly growing urban centers like Bengaluru and Chennai have driven adoption. Additionally, an expanding charging infrastructure and eco-conscious consumer base further bolster the region’s leadership in the market.

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Srishti Verma

Business Consultant
Press Release

The India Electric Two-Wheeler market was valued at USD 468.05 Million in 2023 and is expected to reach USD 2555.78 Million by 2029 with a CAGR of 32.70% during the forecast period.

Sep, 2022

The rise of electric two-wheelers in India, driven by government incentives, environmental awareness, and the demand for cost-effective urban mobility solutions, is accelerating market growth. Techno

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