India Electric Two-Wheeler – Industry Trends & Forecast Report 2027 - PDF document

India Electric Two-Wheeler – Industry Trends & Forecast Report 2027 India Electric Two-Wheeler – Industry Trends & Forecast Report 2027 Summary The Indian electric two-wheeler market was worth USD 64.5 million in 2020 and is further projected to reach USD 360.3 million by 2027, at a CAGR of 27.6% during the forecast period (2021-2027). The growing concern over air pollution is pushing the automobile industry to reduce its carbon footprint, bolstering the need for electric cars on the market. Additionally, the market is primarily driven by strict emission norms/regulations, government incentives, and increasing environmental awareness. The government also extends its support to electric two-wheelers through subsidies, thus, encouraging the adoption of these vehicles as a ‘good replacement’ of the conventional ones. India Electric Two-Wheeler Overview An electric two-wheeler comes with an electric motor instead of an internal combustion engine (ICE). It generates power by burning a mixture of fuel and gases. One of the most unique features of electric two-wheelers is that they can be plugged in by the driver to charge from an off-board electrical power source. This property differentiates electric two-wheelers from hybrid electric vehicles, which have an internal combustion engine and an electric motor that consumes energy contained in batteries. However, the hybrid vehicle cannot be charged by plugging it in. View report Press release Sample report India Electric Two-Wheeler – Industry Trends & Forecast Report 2027 India has a sizable two-wheeler market and the fact that these vehicles can help reduce pollution is likely to benefit India’s electric two-wheeler industry. Additionally, government initiatives, such as incentives for the purchase of electric vehicles, have made electric two-wheelers a more appealing choice than two-wheelers running on fuel. India Electric Two-Wheeler Forecast and Trend Growth Drivers Growing Concerns Over Environmental Pollution On the Environmental Pollution Index, India is among the bottom five countries in the environmental health category. As far as air quality is concerned, India’s CO2 emissions rate is increasing every year owing to the emission of toxic gases by fuel-based vehicles. The Government of India is now focusing more on EVs such as two-wheeler vehicles and introducing policies such as FAME 1 and FAME 2. These initiatives would help improve air quality besides favoring the market during the forecast period. Furthermore, the fact that an electric two-wheeler has lower maintenance and running costs than an internal combustion engine vehicle will propel the industry forward in the coming years. Heavy Investments from Automakers in Electric Two-Wheeler The rising demand for India's electric two-wheeler market is expected to be fueled by heavy investments from automakers. Big companies like Hero Electric Vehicles Pvt. Ltd., Lohia Auto Industries, Electrotherm (India) Ltd, and others are investing huge money in the EV market by launching new, cheap, and affordable two-wheelers.Over the forecast period, the Indian electric two-wheeler market is expected to be driven by the rising number of electric two-wheeler manufacturers and their increasing emphasis on research and development to produce technologically advanced and affordable electric two-wheelers. Restraints Lack of Standardization of Charging Infrastructure One of the biggest restraints for the success of deploying the electric two-wheelers in India is the lack of adequate charging infrastructure. India's electric vehicle charging infrastructure is still in its infancy. It is yet to catch up to meet the country's needs, which is seriously impeding the adoption of electronic vehicles in the country. The land proposal is a major challenge in any metro city as charging stations need reserved space not just for the setup, but also for parking spaces so that multiple vehicles can park and use the charging station. These are a few factors hindering the growth of the electric two-wheeler market in India. Impact of COVID-19 The COVID-19 pandemic has posed a major threat to India’s electric two-wheeler market as demand has been hampered as a result of the lockdown. For a market that is trying to strengthen its position in the industry, the COVID-19-infused lockdown was a severe blow. Moreover, major auto manufacturers were also impacted by this communicable disease. However, the launch of BS-VI standards has created ample opportunities for electric two-wheelers amid the pandemic. Since BS-VI cuts down tailpipe emissions, they emit less heat and produce less India Electric Two-Wheeler – Industry Trends & Forecast Report 2027 noise compared to conventional vehicles. Investing in electric two-wheelers is likely to help in retaining air quality and lower health risks in communities. We have already entered the post-pandemic era; consumers now feel safer and protected to travel in their own vehicles so the demand for private vehicles is increasing, thus, creating significant opportunities in the electric two-wheeler market. India Electric Two-Wheeler Vehicle Market: By Battery Based on battery, the Indian electronic two-wheeler market is categorized as lead-acid battery and Lithium-Ion-batteries. Lithium-ion batteries have the highest market share because they are lightweight, have improved protection, are chemically and thermally stable, are more reliable, and are capable of fast charging. Because of these advantages, electric two-wheeler manufactures are widely adopting lithium-ion batteries in electric two-wheelers, which in turn is driving the growth of the lithium-ion battery in this segment. Furthermore, lithium-ion batteries can last up to 10 years or longer, based on how well they are maintained, attracting customers to purchase electric two-wheelers besides fueling market development. Indian Electric Two-Wheeler Vehicle Market: By Vehicle Type Based on the vehicle type, the Indian electric two-wheeler is segmented into EV scooters and motorcycles. The scooters hold the largest share among the two vehicle types. EV scooters are expected to stay at the top as the trends and volume of sales appear to favor two-wheeler EV scooters. The contributing factors for this growth in the demand for EV scooters could be the rising subsidies granted by the government for reduced use of conventional vehicles which have increased the pollution levels in the past several years. India Electric Two-Wheeler Market: Regional Analysis India electric two-wheeler market is segmented into Eastern India, Northern India, Southern India, Western India wherein, Southern India accounts for the highest share. Southern India is expected to be the largest and fastest-growing market as many automotive industries are setting up their manufacturing units in the Southern part of India. Bangalore is known as Silicon Valley of India as many startups have established their business in Bangalore due to friendly rules and regulations set up by the Government of Southern India, which have attracted various manufacturers to set up manufacturing units, thereby boosting the demand for electric two-wheelers in the region. Competitive Landscape The leading players in India’s electronic two-wheeler market are Hero Electric Vehicles Pvt. Ltd, Lohia Auto Industries, Electrotherm (India) Ltd, Avon Cycles Ltd, Okinawa Autotech Pvt. Ltd., NDS Eco Motors Private Limited, YULU, Ather Energy, AMPERE VEHICLES, Revolt Motors, Hero Electric Vehicles Pvt. Ltd., and other prominent players. The Indian electric two-wheeler market is consolidated in nature. The rise in government initiatives and programs for providing subsidies has led to the rising demand for electric two-wheelers. In terms of competition, many new players are expected to enter the market in the coming years as the electric two-wheeler India Electric Two-Wheeler – Industry Trends & Forecast Report 2027 market is emerging rapidly. Moreover, the market participants are continually focusing on improving their services to attain a competitive edge over other players. Recent Developments · In February 2021, the Delhi Government announced its lofty target of registering 25% of all vehicles in Delhi as electric vehicles by 2024. According to its EV policy 2020, the government provides Rs.5000 per kWh of battery capacity per vehicle. However, depending on the vehicle, this amount can go up to INR. 30,000. · In May 2020, Okinawa announced that the company will launch a completely made-in-India electric motorcycle. Apart from the battery cells, the electric motorcycle, called Oki100 will be completely made in India and will be launched in the third quarter of the current financial year. Scope of the Report Attribute Details Years Considered Historical data – 2017-2020 Base Year – 2021 Forecast – 2022 – 2027 Facts Covered Revenue in USD Million Market Coverage Eastern India, Northern India, Southern India, Western India Product/Service Segmentation By vehicle type, technology, voltage, battery type, and region Key Players The key players for the electric vehicle market are Hero Electric Vehicles Pvt. Ltd., Lohia Auto Industries, Electrotherm (India) Ltd., Avon Cycles Ltd., Okinawa Autotech Pvt. Ltd., NDS Eco Motors Private Limited, Kawasaki, Ather Energy Pvt. By Vehicle Type Ø Scooter Ø Motorcycle By Battery Type Ø Lead Acid Battery Ø Lithium-ion Battery By Voltage India Electric Two-Wheeler – Industry Trends & Forecast Report 2027 Ø 36V Ø 48V Ø 60V Ø 72V and above By Technology Ø Plug-in Ø Battery By Region Ø Northern Ø Eastern Ø Western Ø Southern FAQs: 1. What will be the expected size of the Indian electric two-wheeler market in 2027? Answer: The Indian electric two-wheeler market is expected to reach USD 64.5million in 2027. 2. What are the major factors driving the growth of the Indian electric two-wheeler market? Answer: The major factors driving the growth of the Indian electric two-wheeler market are growing concerns over environmental pollution and heavy investments from automakers in electric two-wheelers. 3. Who are the key players in the Indian electric two-wheeler market? Answer: The key players in the Indian electric two-wheeler vehicle market are Hero Electric Vehicles Pvt. Ltd., Lohia Auto Industries, Electrotherm (India) Ltd., Avon Cycles Ltd., Okinawa Autotech Pvt. Ltd., NDS Eco Motors Private Limited, Kawasaki, Ather Energy Pvt., and other prominent players. 4. Which battery type accounted for the largest share in the Indian electric two-wheeler market? Answer: Lithium-Ion accounted for the largest share in the Indian electric two-wheeler market. 5. Which region is expected to grow at a higher CAGR during the forecast period? Answer: Southern region is expected to grow at a higher CAGRduring the forecast period. India Electric Two-Wheeler – Industry Trends & Forecast Report 2027 About us Blueweave Consulting offers a one-stop solution for your market intelligence needs for any service or product. You get well-researched comprehensive reports based on qualitative and quantitative data to put your business plan into action. Your well informed and timely decisions using our reports avert situations of excessive risks and help you grow your business with optimum risk-return trade-off. Delivering quality insights into several product or service markets within the timeline as per the needs of the clients has earned BWC an excellent reputation among clients. BWC strives to provide timely and accurate digital market intelligence services for making your business endeavours successful. For more information, kindly visit our Website www.blueweaveconsulting.com contact us at info@blueweaveconsulting.com India Electric Two-Wheeler – Industry Trends & Forecast Report 2027 India Electric Two-Wheeler – Industry Trends & Forecast Report 2027