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The electric two-wheeler market in India and the opportunities ahead.

The market for electric two-wheelers in India so far:

The market for an electric two-wheeler in India is still at a nascent stage, however, if we calculate the growth for the year 2019 nearly 152K units of electric scooters and bikes were sold in the country, which registered an increased growth rate of 20.6% annually from the previous years.   

The fiscal year of 2020 saw a growth of sales for the electric two-wheeler in India by 20.7%, which was around 152,000 units. The EV industry in India is bulging despite the COVID-19 effect, which has dampened the overall automobile markets. However, the market research states that the few main reasons why many consumers are considering a shift to electric two-wheelers are pertaining to the health concerns caused due to pollution and the cost-effectiveness in the longer run. 

The rise in pollution level and introduction of provisions by the government offering financial incentives have witnessed the sales of electric two-wheelers and bikes swell in size. The market for electric two-wheelers in India is expected to exhibit in the near future, primarily due to the implementation of the government policies favoring the sales of EVs and boost the consumer preference for electric two-wheelers over the fuel-based variants.   

One of the primary factors for the growth in the sales of these scooters can be stated as the availability of a wide array of options in the country, at an affordable price and offering a sturdy alternative for fossil fuel-based vehicles. Amongst the various models available in the market the low-speed scooters that go at a max speed of 25-35 km per hour and do not require registration and driving licenses have constituted a whooping fraction of all the electric two-wheelers sold. The Gemopai Miso in this category stands as a good example, as it has been favored for solo traveling as social distancing remained one of the crucial matters of concern.   

As per the market experts, one of the critical exhibitions in the post COVID era would be the shift from crowded transportation mode to solo traveling. The rising petrol price is also a contributing factor. Undoubtedly the pandemic has thrown some serious financial imbalance for the common public and it is estimated that they would look forward to a more budget-friendly traveling concept in the coming years. The availability of electric two-wheelers in India from the starting range of around Rs 30,000 to 45,000 has also led to the growth in sales.   

As per the reports by the Society of Manufacturers of Electric Vehicles (SMEV), the registration of high-speed electric two-wheelers in September 2020 stood at around 2,544 units, implying a 72% year-on-year increase as compared to the numbers of the previous year. Thus, not only the low-speed models of two-wheelers but also the advanced models have found their market space and are growing in sales number. As per the Director general of SMEV, there is a surge in consumer interest for greener vehicles, and are expecting to recover the sales potential which was lost in the initial stage of the pandemic.  

  • The opportunities ahead:   

It is estimated that the Indian electric two-wheeler market would reach a sales volume of 1,080.5 thousand by the end of 2025, thus exhibiting a CAGR of 57.9% between 2020 and 2025. The demand for electric scooters and bikes has ballooned considerably owing to which many manufacturers are rapidly increasing their network of dealerships geographically. Evidently, the expansion of dealerships will push the sales of electric two-wheelers in India to its estimated figures. If we look at the retail sales value of these vehicles, the market prediction is stated to advance towards a 63.9% CAGR from 2020 to 2025, driving in good revenue for the industry.  

The SMEV is positive about the outlook for the coming financial year attributing to the many measures and policies adopted by the government of the country both at the central and state level, enhancing the confidence of the manufacturers and investors for the Indian EV industry and particularly the two-wheelers.   

While Hero Electric Vehicles, Okinawa AutoTech, etc., are amongst the forerunners mainly because of the timings of entry in the market of electric two-wheelers in India.  There are many others with far better products and making them available at affordable prices like Gemopai. For example, with its three models in the market, Gemopai has already garnered attention and has strategically directed the expansion for growth with removable Li-ion battery scooters which allow the user to charge the vehicle at their own convenience.   

Innovations emphasizing the battery life of electric vehicles are the best way for EV companies to grow their market. The strength of electric vehicles depends on the batteries and the companies offering advanced battery technology will always have an upper hand convincing the consumers that they are offering a reliable alternative for the traditional vehicles.   

The induction of removable and swappable battery scooters has redefined the choices and is expected to redefine the competition as well. The very concern amongst the users related to the electric two-wheelers in India is the availably of charging facilities and the battery life. The battery swapping option can bring in a generous amount of growth in sales.   

  • Is an electric two-wheeler worth buying?  

The buzz question with which the automobile industry and the consumers have started this decade is- whether or not it is worth buying an electric two-wheeler? To answer crisply, EVs are not only the future of mobility but are also the need of the present-day lifestyle. The need for an alternative method of mobility implies an alternative to fossil fuels. If we consider the scenario of India, two-wheelers are the most popular mode of transportation and these zero-emission vehicles can usher in a lot of change in the ecosystem we are currently prevailing in. Apart from that, the electric two-wheelers as mentioned are budget-friendly and can save the pocket from the staggering hike in the fuel price.   

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