The year 2024 is a milestone year for India’s EV market but more importantly for Electric 2W scooters, motorcycles, and mopeds. For the first time in our existence, we have exceeded the incredible mark of 1 million units in terms of sales per year.
This has occurred despite increasing signs that Indians are increasingly choosing to use environmentally friendly methods of transport. It also helps brand it as India Electric as one of the global leaders in the fight to attain sustainable mobility.
The following are some of the main factors; cheap prices, policy support, increased fuel prices, and the development of a good charging network. Electric two-wheelers are not only cheaper but also stylish and comfortable to use hence being attractive to more consumers each day.
The main players in the market include Ola Electric 2W, TVS, Bajaj Auto, and Ather Energy, hence, these brands are already popular among the targeted customers. On the other hand states such as Maharashtra and Uttar Pradesh have made significant sales indicating regional growth.
This milestone is not just a small point. This is an indicator of the future India is going green in transportation systems including e2Ws.
The Road to 1 Million: A Milestone Achievement
As per the Vahan release of data until 12 November 2024, the domestic electric two-wheeler retail sales from 01 January to 11 November 2024 stood at 1,00,0987. This is the first time that the e2W segment of the value chain has seen more than one million unit transactions in a given calendar year.
It is incumbent on this milestone to assertively affirm the perceived step-by-step confidence that consumers are developing in Electric vehicles in India. It has now risen to contribute 59.54% to the total 1,68,000 electric vehicles sold in India across all markets in this segment during this period.
This dominance underlines the significance of e2Ws in determining the overall size of the more extensive framework of EVs in the respective country.
Key Drivers Behind the Surge
Affordability and Government Support
The huge popularity of India Electric 2W can be attributed to the fact that these vehicle models are cheap in the global market. Electric scooters, motorcycles compared to petrol ones, are cheaper which brings in customers across the income scale.
In addition, the government has launched the Faster Adoption and Manufacturing of Hybrid and Electric 2W (FAME) to overcome the matchstick issue in India since it offers subsidies and makes the upfront cost of the EVs cheaper for buyers.
Also, more state-level incentives including exemption for road tax and reduction in registration fees have pulled down the cost of e2Ws. Another reason that contributes to the fact that electric vehicles are much more appealing than conventional vehicles is that through the new GST regime, a smaller amount is charged on Electric 2W than on traditional ones.
Rising Fuel Costs
Often, there have been slight increases in fuel prices in India and many people have therefore sought better options. When petrol and diesel are expensive, consumers are using India Electric 2W as they are cheaper.
H3 – E2Ws are cheaper to operate since they operate on electricity as compared to petrol or diesel form of power. The electrical two-wheelers are optimum for those using their vehicles daily to travel to and from work, as the cost of fuel over a period is significant.
Improved Charging Infrastructure
Another big concern that potential buyers gave much thought to in the past was the issue of range or running out of charge to a neighboring charging station. But is no longer a problem, with the charging networks having been scaled across the nation at a brisk pace.
Public charging points are now in excess of 10,000 and spread across both urban and rural settings making it much simpler to recharge an e2W. This convenience has made owning an Electric 2W a lot more practical and has prompted thousands of people to shift from the petrol mode of two-wheeler vehicles.
Advances in Technology
Technology has been a big boost to the trend of India Electric 2W. Some of the features of today’s e2Ws include features like battery swapping, where users can simply exchange their spent battery for a charged one from specific stations.
Several e2Ws also come with smartphone integration that shows the user data such as data like distance traveled, battery status, and charging station information.
Unlike traditional two-wheelers that may have poor braking, a weak suspension system, or may be costly to maintain, Electric 2W are self-improving to become safer and more enjoyable to ride. Such technological developments make e2Ws not just functional but also future-orientated.
Top Players in the Market
The electric two-wheeler market is dominated by four key players:
- Sales: 376,550 units (37% market share).
- Known for its sleek design and performance-focused models.
- Sales: 187,301 units (19% market share).
- A legacy brand offering reliable and diverse e2W options.
- Sales: 157,528 units (16% market share).
- Excelling with its Chetak series, a blend of heritage and innovation.
- Sales: 107,350 units (10.72% market share).
- Pioneering the premium e-scooter segment with high-performance models.
These companies collectively account for 83% of the market, leaving a fragmented 17% to over 200 smaller manufacturers.
Regional Trends: Maharashtra Leads the Charge
Maharashtra take the first place with 259 units sold, equivalent to 1.8 percent of the overall sales. Other leading states include:
- Uttar Pradesh: 157,631 units (15.74%)
- Karnataka: 137,492 units (13.73%)
- Tamil Nadu: 100,223 units (10%)
There is unequal regional distribution with these four states accounting for 57.68% of the country’s total Electric 2W sales in india.
Accelerated Growth Trajectory
The e2W market’s growth in 2024 is a continuation of a robust upward trend:
- 2021: 156,325 units
- 2022: Significant growth by 36%
- 2023: Sales reached 860,410 units
- 2024: Expected to close between 1.1-1.2 million units
This sums up to a four-year growth of 540 percent leading to the consolidation of India’s Electric 2W.
Future Outlook of Electric 2W
The growth of electric 2 wheelers (e2Ws) is just the beginning of India’s extended and growing Electric 2W (EVs) market. That is why the outlook for India’s continuing transition to sustainable mobility has never looked brighter. Here’s an extended look at what lies ahead:
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Electric Vehicle Sales Surge
The cumulative sales of Electric 2W in India are expected to go to more than 2 million units by the end of the 2024 financial year. This is a big step forward in the progress towards the greater use of EVs nationwide.
The shift to the green economy is becoming more apparent or let’s say it increasing in popularity and more and more people (consumers) start using electrical vehicles.
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Innovations in the Field of Battery
The India Electric market has received significant boosts from constant advancements in battery technology which is a key driver of the market.
Advances in energy density, charging times, and above all battery durability are seeing e2Ws become more efficient and cheaper. In the future implementations of better batteries, electric automobiles will be even more realistic for the common consumer.
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Subsidy and Incentives from Government
Indian Government, especially through FAME – Faster Adoption and Manufacturing of Hybrid & Electric 2 Wheeler india, has been instrumental in promoting the EV sector with time.
These subsidies are supported by tax incentives, as well as state-level incentives that have proved instrumental in enabling more consumers to switch to Electric 2W by lowering the steep cost of entry.
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Increased Consumer Awareness
As people learn the impact that Electric 2W impose on the environment and the costs they save when adopting this type of car, the need for electric two wheeler is increasing.
Campaigns, media adverts and people talking about a product are making people make informed decisions. Thus, a shift of mindset is continuing to be a key driver that is promoting the extended growth of the EV market.
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Potential Economic and Environment Consequences
The new market of Electric 2W in India has the potential to trigger a change in the economy as well as a change in climate. With the upsurge in the use of EVs, the dependence on fossil fuels will decrease, and there consequently be low emissions of carbon.
This change will not only enhance the quality of our air but also pave the way for young industries and employment in clean forms of energy and electric-powered mobility.
Conclusion
This record of achieving 1 million annual sales in the e2W segment is unexampled, and India Electric 2W have a vital part in the future of mobility in India.
Anything is possible if innovations are encouraged, policies are maintained, and consumers become more aware of their options for India to have a sustainable future for Electric 2W. Find out the new electric two-wheeler model releases in India and how to leap forward in EV technology!
Disclaimer: This article contains information only and should not be construed as professional advice. The numbers provided are also based on the most recent findings and statistics.
FAQs
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What is the significance of the 1 million sales milestone?
It means India is also slowly and steadily embracing electric vehicles as a faster solution to the transportation crisis.
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Which state leads in electric two-wheeler sales?
On the volume, the sales figures for Maharashtra state recorded the highest at 182,035 units, which made up 18% of the market’s sales.
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Who are the leading manufacturers in the e2W market?
Ola Electric, TVS, Bajaj Auto, and Ather Energy control almost 83% of the electric scooter market.
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What is driving the growth of electric two-wheelers in India?
The factors include low cost, subsidies and tax credits, increasing price of fuel, and advancement in technology on charging facilities.
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How does the e2W market contribute to India’s overall EV sales?
Out of total EV sales, electric two-wheelers have the largest percentage of 59.54% in the market thus playing a crucial role.
