An electrical two-wheeler is a form of transport with a new mobility approach, especially in countries with large populations which concerned about the impact of GHG emissions on the environment.

One of the most important factors driving the electric scooter and motorcycle market is the increasing prices of petroleum products. Consumers from developing countries are already feeling the heat of increased cost of petrol. Electrical two-wheelers that run on electricity would definitely reduce the operating cost of these vehicles.

The electric scooter and motorcycle industry are witnessing technological developments not only to meet the customer demand but also to be future ready. Manufacturers are expected to develop electric scooters and motorcycles with a higher range than the current breed of electric two-wheelers. Also, as there is lesser number of moving parts than conventional two-wheelers, maintenance will not be a major concern. The biggest maintenance cost would be the cost of changing the battery, which, however, is not frequent.

e- Estimated, p- Projected

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

India is one of the largest two-wheeler markets in the global two-wheeler industry and has entered the electric scooter and motorcycle market as well. The electric scooter and motorcycle market in the country is expected to witness incremental growth in the coming years due to reforms initiated by the government. For instance, from June 2019, all electric vehicles in the country are to be exempted from road tax, which is to be paid for the registration of vehicles. Another important factor to play a vital role is the entry of established Indian players and start-ups in the electric two-wheeler segment. TVS and Bajaj are some of the established players planning to enter the market soon, and start-ups such as Ather Energy, Emflux, and Okinawa have already entered the electric two-wheeler space. Currently, Hero Electric is leading the Indian electric scooter and motorcycle market.

As per MarketsandMarkets analysis, the Indian electric scooter and motorcycle market is estimated to grow from 0.18 million units in 2019 to 3.27 million units by 2027, at a CAGR of 43%. The e-scooter/moped segment of the Indian electric scooter and motorcycle market is estimated to be 0.16 million units in 2019 and projected to grow to 2.96 million units by 2027, at a CAGR of 44%.

Conclusion:

The FAME-II scheme introduced by the Indian government provides incentives to buyers for electric two-wheelers with certain specifications. Manufacturers are expected to shift the focus on developing electric two-wheelers that are eligible for incentives. Industry leaders such as TVS and Bajaj are developing electric scooters/mopeds, which would boost the electric scooter segment. New entrants like Ather Energy are technically sound with advanced technologies like cloud-connected diagnostic tools and smartphone connectivity in its two electric scooter offerings. Ather also has a dedicated in-house charging network—Ather Grid—offered in cities where the company operates in.

Most manufacturers are gearing up to meet the challenges of the Bharat Stage VI emission regulations effective from April 2020. However, the draft proposal to make most two-wheelers electric by 2025 will be yet another challenge. MnM has analysed that most stakeholders will not want to dilute financial performance at the cost of product development, which is likely to take more than a year or two, more so, with newer technologies and new segments. There will be an increased focus on electric technology along with an increased push for electric product development is expected irrespective of whether the draft proposal becomes policy or not.

Article Credit : Markets and Markets