Till 2025, the 72 V category, under segmentation by voltage, would experience the highest volume CAGR in the Indian electric scooter and motorcycle market
The sales volume of the Indian electric two-wheeler industry is expected to massively increase from 152 thousand units in 2019 to 1,080.5 thousand units in 2025. This represents a 57.9 per cent CAGR between 2020 and 2025.
“The electric scooter and motorcycle market in India has been severely hit by the COVID-19 pandemic, which has led to zero demand for two-wheelers, in general. Apart from the nationwide lockdown, which has resulted in the shutdown of manufacturing plants, even the supply of electric vehicle (EV) components from China has been hampered. Additionally, the forecast for a grim financial future by the International Monetary Fund (IMF) is discouraging investors from funding electric two-wheeler manufacturers,” read the P&S Intelligence Report.
Uptake of electric motorcycles will grow
In the years to come, the motorcycle bifurcation, on the basis of product, is predicted to witness rapid advance in the Indian electric scooter and motorcycle market, with the launching of several models by automakers. Due to the increasing demand for higher power, speed, and driving range from electric two-wheelers, the uptake of motorcycles will grow.
The sealed lead–acid (SLA) bifurcation, based on battery type, will continue dominating the electric scooter and motorcycle market of India in the coming years. This is because these batteries are cost-effective and easily available and the demand for low-speed electric two-wheelers is expected to remain substantially high.
Till 2025, the 72 V category, under segmentation by voltage, would experience the highest volume CAGR in the Indian electric scooter and motorcycle market, of 80.5 per cent. This would be a result of the better mileage and performance that these batteries impart to vehicles.
In the next six years, the non-removable technology bifurcation will account for the majority of the Indian electric scooter and motorcycle market sales volume and value, due to the inadequate number of EV charging stations and the range anxiety which is currently associated with EVs. Moreover, recharging a battery takes way more time than simply swapping it, which makes removable-battery variants more popular.
“Presently, Uttar Pradesh is the largest electric scooter and motorcycle market in India, in terms of sales volume. In the coming years, Karnataka is expected to witness the fastest growth in the demand for such automobiles. The reasons for both these industry findings are the rising adoption of electric two-wheelers in the major Tier-I, II, and III cities of the states, developments in the EV value chain, and government support. Additionally, major automakers are expanding their presence in Uttar Pradesh, considering the high growth potential of the industry here,” read the report.