Growing Trend of Electric Scooters and Motorcycles in Indian Market

The Indian electric scooters and motorcycles market is predicted to generate a revenue of $698.3 million by 2025, progressing at a 36.3% CAGR during the forecast period. The increasing concerns toward greenhouse gas emissions (GHG), leading to various government initiatives and the formulation of strict emission regulations, are some of the key factors responsible for the growth of the market. In addition, the entrance of new and existence of established manufacturers, as well as the introduction of various new variants of electric scooters, are projected to augment the market growth during the forecast period.

Based on battery type, the Indian Electric Bike market is bifurcated into lithium-ion (Li-ion) and sealed lead acid (SLA). Of these, the sealed lead acid battery bifurcation led the market of two-wheelers in India in terms of sales volume. This is attributed to the fact that SLA batteries are comparatively lower priced than Li-ion batteries. However, in recent years, Li-ion batteries costs have fallen rapidly, helping the segment grow at a significant pace.

Additionally, government support for Li-ion battery-based electric scooters under the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME II) scheme is also predicted to benefit the category during the forecast period. The Indian government is strengthening the electric vehicles market by offering subsidies on their purchase. These subsidies have also aided the Indian electric scooters and motorcycles market by making electric two-wheelers more affordable for customers.

Under the Fame II scheme, the government has introduced a subsidy of up to $369 on the purchase of electric two-wheelers, on the basis of battery size. This is making electric two-wheelers more reasonable for customers, which is further driving the growth of the Indian electric scooters and motorcycles market. In India, while the majority of the electric scooters and motorcycles are powered by SLA batteries, the share of Li-ion batteries is predicted to surge owing to their reducing prices and more benefits compared to lead acid ones.

Each SLA battery consists of 10–20 kg of lead, which is an extremely toxic substance. The sealed lead acid batteries have a lower density than the Li-ion batteries, making the latter efficient and lighter. In addition, Li-ion batteries have a longer life span (over 2,000 charge cycles) than SLA batteries (maximum 400 charges). Furthermore, during the forecast period, the decreasing price of Li-ion batteries is expected to help increase their consumption in the Indian electric scooters and motorcycles market. Hero Electric Vehicles Pvt. Ltd., Lohia Auto Industries, and Electrotherm (India) Ltd. are some of the key players operating in the market. 

INDIA ELECTRIC SCOOTERS AND MOTORCYCLES MARKET SEGMENTATION

Market Segmentation by Product

·                     Scooter

·                     Motorcycle

Market Segmentation by Battery Type

·                     Sealed Lead Acid

·                     Li-Ion

Market Segmentation by Voltage

·                     36 V

·                     48 V

·                     60 V

·                     72 V

Market Segmentation by Technology

·                     Removable

·                     Non-Removable

Market Segmentation by Maximum Speed

·                     <25 Km/h

·                     25–50 Km/h

·                     >50 Km/h

Market Segmentation by Power

·                     <1 kW

·                     >1 kW

Market Segmentation by Charging Time

·                     <4 h

·                     4–6 h

·                     >6 h

Market Segmentation by State

·                     Uttar Pradesh

·                     Maharashtra

·                     West Bengal

·                     Gujarat

·                     Tamil Nadu

·                     Delhi

·                     Rajasthan

·                     Karnataka

·                     Haryana

·                     Madhya Pradesh

·                     Others