Electric Two-Wheeler - Baker's Dozen for Indian EV Industry

Rooting to Medieval period Baker’s dozen mean 13 not 12 !! that is giving some extra to customer. Two-Wheeler which is 74.8% holds key to development of Indian EV industry. Could electric two wheeler will give that extra 13 to Indian EV ?

The Indian electric scooter market experienced remarkable growth in 2018, with sales surging by 127% compared to 2017. This momentum continued in 2019 The Indian electric scooter market experienced remarkable growth, surging by 127% in 2018. Despite a 26% decline in 2020 due to the COVID-19 pandemic, the market rebounded strongly in 2021 with a 123% increase. A significant turning point came in 2022, when sales skyrocketed by 347%.

The Electric two wheeler holds the strong penetration in EV sales , from 50% in 2021 it raised to 63 % in 2022

The electric vehicle (EV) scooter and motorcycle manufacturing industry in India has experienced significant growth in recent years. In 2023, there are 28 companies either operating or establishing manufacturing or assembling facilities in the country, marking a substantial increase from just 12 companies in 2015.

Why two Wheeler dominates the Indian Market

Some key factors which drive the growth of Indian two-wheeler market

?1. Rising Fuel Prices: The escalating cost of petrol and diesel has made electric two-wheelers a more cost-effective alternative for daily commuting. As fuel prices continue to rise, the affordability of electric two-wheelers is expected to further boost their popularity.

2. Government Incentives: The Indian government has implemented various incentives to promote the adoption of electric vehicles, including subsidies, tax benefits, and dedicated lanes. These incentives have significantly reduced the upfront cost of electric two-wheelers, making them more accessible to a wider range of consumers.

3. Improving Technology: Technological advancements have led to significant improvements in electric two-wheeler performance, range, and charging times. Longer ranges, faster charging, and enhanced performance are addressing range anxiety and making electric two-wheelers a more practical choice for daily use.

4. Urbanization and Traffic Congestion: India's rapid urbanization and increasing traffic congestion have created a demand for efficient and convenient modes of transportation. Electric two-wheelers offer a compact and maneuverable solution for urban commutes, helping to reduce traffic congestion and improve air quality in densely populated cities.

5. Environmental Concerns: Environmental consciousness among Indian consumers is growing, and electric two-wheelers offer a sustainable and eco-friendly mode of transportation. The reduced emissions and pollution from electric vehicles are appealing to environmentally conscious consumers who want to contribute to cleaner air and a healthier environment.

key trends that are expected to shape the future of the electric two-wheeler market in India

1. Increased focus on affordability:?As the market matures, we can expect to see more affordable electric two-wheelers in the market.
2. Longer ranges:?Electric two-wheelers with longer ranges will become more popular, as this will address one of the main concerns of consumers.
3. Faster charging:?Faster charging technology will make electric two-wheelers even more convenient for consumers.
4. New battery technologies:?New battery technologies, such as solid-state batteries, could revolutionize the electric two-wheeler industry

several hurdles that need to be addressed

1.High upfront cost: The initial purchase price of electric two-wheelers remains significantly higher compared to their petrol-powered counterparts. This price gap poses a barrier for many consumers, especially in price-sensitive markets like India.

2.Limited range anxiety: Range anxiety, the fear of running out of battery power, remains a major concern among potential electric two-wheeler buyers. While range has improved in recent years, it still falls short of the range offered by petrol-powered vehicles, especially for long-distance commutes.

3.Inadequate charging infrastructure: The availability of charging stations, particularly fast-charging stations, is still limited, particularly in smaller towns and rural areas. This lack of infrastructure creates inconvenience and hinders the adoption of electric two-wheelers beyond urban centers.

4.Battery performance and longevity: Battery technology remains a critical area for improvement. Concerns about battery performance, longevity, and safety need to be addressed to instill confidence in consumers and encourage wider acceptance of electric two-wheelers.

5.Supply chain disruptions: The ongoing global supply chain disruptions have impacted the availability of critical components, including semiconductors, leading to production delays and supply shortages. This has affected the production and delivery of electric two-wheelers, hindering market growth.

To overcome above challenges here are some potential solutions

1. Continued government support: The government should continue to provide incentives, such as subsidies and tax benefits, to make electric two-wheelers more affordable. Additionally, investments in charging infrastructure development are crucial to address range anxiety and encourage adoption.
2. Technological advancements: Manufacturers should focus on developing innovative battery technologies that offer longer ranges, faster charging times, and enhanced performance. Additionally, advancements in battery safety are essential to address consumer concerns.
3. Industry collaboration: Industry bodies and manufacturers should collaborate to establish standardized charging protocols and promote interoperability across charging networks. This will enhance the convenience and accessibility of charging infrastructure.
4. Public awareness campaigns: Public awareness campaigns are crucial to educate consumers about the benefits of electric two-wheelers, address range anxiety, and promote responsible charging practices.
5. Skilled workforce development: Investing in training and development programs to create a skilled workforce for electric two-wheeler maintenance and repair is essential to ensure adequate after-sales support.

The government aims for significant electric vehicle (EV) adoption by 2030, targeting 30% for private cars, 70% for commercial vehicles, and 80% for two and three-wheelers. Achieving 40% EV penetration in two-wheelers and cars, along with nearly 100% in buses, could cut India's crude oil consumption by 156 million tonnes, saving Rs 3.5 lakh crore. The electric two-wheeler segment is seen as a low hanging fruit for the EV industry in reaching these goals.