India E2W Market: Current Analysis and Forecast (2021-2027)

India E2W Market: Current Analysis and Forecast (2021-2027)

India E2W is expected to witness CAGR growth of around 72% during the forecast period 2021-2027 to reach a sales volume of 3,675.8 thousand units by 2027. High initial cost is one of the major barriers for the adoption of electric vehicle in India. However, the recent restructuring of the FAME-II scheme by the Indian government along with incentives for E2Ws (which has been increased from INR 10,000/kWh to INR 15,000/kWh) is expected to drive the demand and adoption of electric vehicle including E2Ws in India. The FAME-II initiative have brought down the price of E2W closer to the prices of ICE-2 wheelers. Furthermore, adoption of E2W is expected to witness significant disruption post 2023, once the cost of battery decline to US$100/ kWh (INR 7,625.25/kWh). Adoption of E2W is further expected to be driven by the rising fuel prices, declining battery prices and growth in investments from the local battery manufacturers. Investment in the E2W space witness a decline in FY2021, compared to FY2020, owing to the COVID pandemic, which witnessed delayed investment plans from numerous organizations. Investment in FY 2021 from the E2W OEMs was majorly done for premium HS E2W, accounting for almost 80% of the total investment in the E2W space in India

Insights Presented in the Report

“Amongst Vehicle Type, E-Scooter/Moped segment dominates the market in 2020”

Based on Vehicle Type, the India E2W Market is segmented into E-Scooter/Moped and E-Motorcycle. Currently, majority of the Indian E2W market is dominated by low-speed E-Scooter/Moped. However, with advancement in technology and innovation from the automotive OEMs demand for high-speed E-Motorcycle is expected to witness tremendous growth during the forecast period.

“Amongst Speed, High Speed E2W segment to witness significant growth”

Based on Speed, the India E2W Market is bifurcated into Low Speed E2W, High Speed E2W. Currently, Low Speed E2W in the form of E-Scooter/Moped with speed up to 25 KMPH dominates the market, however, by 2025 demand for High Speed E2W in the form of E-Motorcycle is expected to skyrocket. Sale of high speed E2Ws witnessed a Y-o-Y growth of 47%, with 41,048 units sold in FY2021, compared to 27,787 units sold in FY2020.

“Amongst Technology, Battery E2W dominated the market in 2020”

Based on Technology, the India E2W Market is bifurcated into Battery E2W and Plug-in E2W. Currently, demand for battery E2W is more compared to Plug-in E2W. With falling battery prices, electric bike prices are becoming comparable to their petrol counterparts in terms of operating cost.

“Amongst End-Users, E2W to witness increased adoption from Business to Business (B2B) end-user”

Based on End-User, the India E2W Market is bifurcated into Business to Consumer (B2C), Business to Business (B2B). In the current scenario Business to Consumer (B2C) segment of the market dominate the market. However, increasing demand of E2W from businesses to shift their fleet to E2Ws to leverage the better economics would help the Business to Business (B2B) segment to witness high growth during the forecast period.

“South India to witness high adoption of E2W during the forecast period”

For a better understanding of the demand of E2W in India, the market is analyzed for major regions including India (North India, East India, West India, South India). South India to witness increased adoption of E2W in India during the forecast period. Sale of overall E2W has witnessed a strong government push over the last two years to increase EV penetration in India. The push can be credited to the incentives offered under the FAME-II scheme and waiving off registration fees and road tax among major Indian states. Apart from the central- and state-level policy measures and increasing consumer awareness, the increasing growth in sales post lockdown were driven mainly due to the rising fuel prices, declining cost of E2W owing to decreasing cost of battery, among others. Some of the major players operating in the market include Hero Electric, Okinawa, Ather Energy, Ampere Vehicles, Revolt, PureEV, Ola Electric Mobility, Kinetic Green, Evolet, TVS.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry