Two Wheeler Market in India-Findings

While I was on detoxing tour to US and Japan, I did some research on Indian electric two-wheeler?market. If we look at the market growth of four wheeler in India and specially into hybrid segment, the Indian market has shown phenomenal increase in sales. However, Electric Two wheeler growth is anticipated to grow at a CAGR of 29% (Aprox) during the forecast period to reach USD1,028?million (Aprox) by 2028. At the same time anticipated growth in the market can be attributed to increasing initiatives toward green energy coupled with central and state subsidies. We should not forget to judge the rapidly increasing development of charging stations across India, road infrastructure and increase in battery capacity will certainly lead to the growth of India electric two-wheeler market in the upcoming years.

After going through various reports on EV segment, India has identified the need to bring down pollution levels produced by automobiles. Thus, the government of India is speeding up the acceptance of?Electric Two Wheelers in the market by providing various central and state subsidies. These subsidies are flexible and simple enough to be widely accepted by the EV enthusiasts. Based on my research on the Electric two-wheelers I found that the two wheels in India do not have an internal combustion engine. Instead, they have rechargeable battery, which in many cases is removable.

I also found that the India electric two-wheeler market is majorly divided into scooter/moped and motorcycle, and in most of the cases it is dominated by the scooter/moped segment . The trend in India is to be found that the considerable number of electric two-wheeler manufacturers are financing greatly in the research and development sector to develop a more efficient battery with additional performance per charge with lesser charging time. Apart from that , factors such as ease of travel, comfort, efficiency, low operating cost, etc., have increased the demand for electric two-wheelers. This change is a revolutionary factor in the community of EV in India.

We should also judge the impact of COVID-19 outbreak that made influenced the public health and led to economic crisis across the world. Production and supply chain was severely impacted by the pandemic. The most critical part was the supply of lithium-ion batteries that got disrupted due to restrictions imposed by the government of India on shipments coming from China, that resulting in stagnant sales of electric two-wheelers compared to the year 2020. My finding also highlighted the suggestions from the Society of Manufacturers of Electric Vehicles (SMEV), the government is taking initiatives for faster adoption of electric vehicles. Due to the lockdown imposed by the government to prevent the spread of COVID-19, almost all the automotive sectors, including factories, showrooms and workshops, were closed, witnessing a monumental decline in overall production and overall sales of automobiles, although sales of electric two-wheelers have increased due to their rise in popularity among young generation.

Initiatives taken by the Government of India on Environmental Consciousness

Looking at the initiatives taken by the Government of India in recent years, a shift towards green energy and advanced lithium-ion-based electric two-wheelers has been noticed. Despite the increase in demand and sales of electric two-wheelers, there are several factors which restrict the growth of the segment. I feel current prices of electric two-wheelers are higher than their ICE counterpart with similar performance. Accordingly, for faster adoption of electric vehicles government is providing subsidies under the FAME II scheme and independent state EV policies. Other factors include increasing supply of essential components, declining battery cell prices in conflict with rising fossil fuel prices, public awareness, and acceptability.

Suggestions on Reduction in Cost of Ownership

Based on several theories and recommendations, electric vehicles can contribute to the reduction in air pollution, carbon emission and oil dependency in India. Due to fewer moving parts compared to ICE vehicles, electric two-wheeler requires less maintenance service cost and overall, less running cost. Also, electric two-wheelers provide a better performance range per charge compared to the same amount of fuel in ICE vehicles. Electric two-wheeler manufacturers, along with emerging players, are increasing the competition while reducing the cost of ownership in the market with their technologically advanced products, which is expected to aid the growth even further in upcoming years. It has been found that in India, around 50% of the middle-class population considers intra-city travel for their daily need while keeping minimal cost. (Ye Gadi Kitna Deti hai?)

Gradual Shift towards Advanced Technology

If we all look at Global market, technological era is the thrust behind constant innovation and technological advancement which is driving the automotive sector. Advancement in automotive technologies brings artificial intelligence, more comfort, and advanced features such as brake assistance, anti-theft system, reverse driving for parking assistance etc., high-capacity travel range, less charging time, less maintenance, reduced complexity, and efficiency to the vehicle. The adoption of lithium-ion battery is increasing as it provides more reliable features compared to lead acid battery. I am sure many more innovations are yet to take place and growth of EVs in India will certainly adopts exponential growth sooner or later.