In March 2024, the electric two-wheeler industry in India experienced a significant boost in sales, with 1,36,559 units sold. This surge in sales can be attributed to consumers rushing to purchase electric scooters and motorcycles before the new Electric Mobility Promotion Scheme 2024 (EMPS) came into effect on April 1, 2024. The EMPS offers a subsidy of Rs 5,000 per kWh, with a maximum limit of Rs 10,000 per vehicle.
Top Electric Two-Wheeler OEMs in FY24
- Ola Electric led the market with record sales of 3,26,428 units in FY24, holding a 35 percent market share.
- TVS Motor Co followed with 1,82,933 units sold, achieving a 19.37 percent market share.
- Bajaj Auto sold 1,06,431 Chetak e-scooters, gaining an 11.27 percent market share.
- Ather Energy sold 1,08,870 units, securing a 12 percent market share.
Industry Growth and Outlook
The electric two-wheeler industry witnessed a total of over 9.44 lakh units sold in FY24, marking a 30 percent year-on-year growth. The industry's growth is driven by the rising demand for electric mobility, high petrol prices, and the increasing adoption of electric vehicles for last-mile deliveries. The trend towards higher levels of localisation and indigenous manufacture of EV components is also expected to contribute to cost rationalisation and further growth in the industry.
Challenges and Opportunities
While the initial cost of electric two-wheelers remains higher compared to traditional petrol-powered vehicles, the total cost of ownership (TCO) is lower, especially for fleet operators. The industry is expected to continue growing, albeit at a slower pace due to the high base of FY24. However, the expanding product range, surging demand from last-mile mobility operators, and the ongoing shift from petrol to electric power are likely to sustain the momentum in the electric two-wheeler market.