India expects to sell 22 Million electric two-wheelers by 2030
- ByStartupStory | February 1, 2023
According to Redseer Strategy Consultants’ latest report on the E2W landscape in India, India is expected to sell 22 million electric two-wheelers (E2W) by 2030.
India, a predominantly two-wheeler market, has an EV penetration of 3%, while the four-wheeler-dominated markets of the United States and China have penetrations of 63% and 56%, respectively, according to the report.
Though electrification of mobility in India is still in its early stages, the report notes that there is plenty of room for expansion.
“On the consumer end, features, running costs, and price constitute the top three consideration factors for buying an electric vehicle, followed by environmental concern and performance,” says Aditya Agrawal, Partner at Redseer Strategy Consultants. “Although the purchasing cost of E2W is slightly higher, they win when it comes to running costs compared to their Internal Combustion Engine (ICE) counterparts.”
He further tells, “As per our research, while the E2W total cost of ownership for a sporadic user is only a little bit lesser, the daily commuter and heavy users save substantially over the life of the vehicle, making E2Ws the right choice for players such as food aggregators and last-mile delivery partners for whom the total cost of ownership can be lower by over 50% compared to an ICE vehicle,” Yourstory reported.
According to the report, the rise of numerous brands in the E2W space, such as Ather Energy, Ola, Hero Electric, Bajaj, TVS, Okinawa, PURE EV, and Revolt Motors, is one of the critical drivers of growth. With more options for consumers, businesses can push for greater adoption across price points and boost public trust. This has resulted in an increase in E2W sales throughout India, including Tier III and Tier IV cities.
According to the report, consumers and regulations will reward players with technological and manufacturing sophistication in the future, resulting in a more consolidated market.
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