Electric two-wheeler penetration 100% by FY27: Niti Aayog

The report also presents an incentive-driven scenario where the sales of electric two-wheelers can reach 54.91 lakh units by FY2031

June 30, 2022

The report also provided insights into the infrastructure needed, manufacturing capability, policies, and technology-development priorities in the sector

The report has also constructed future scenarios based on three major factors influencing the market penetration of electric two-wheelers: demand incentives, battery cost, and vehicle performance in terms of range and power

Sales of electric two-wheelers may reach 250 lakh units if there is sufficient installed capacity of electric two-wheelers and charging infrastructure

The report aims at a driven scenario where the sales of electric two-wheelers can reach 54.91 lakh units provided there is a 2% reduction in battery cost and no change in range and performance

There will be a 100% penetration of electric two-wheelers in the Indian market by FY2026-27, according to a report titled ‘Forecasting Penetration of Electric Two-Wheelers in India’, launched by NITI Aayog.

The report also provided insights into the infrastructure needed, manufacturing capability, policies, and technology-development priorities in the sector. It is estimated that if an R&D programme enhances the range and power of electric two-wheelers by 5% annually between FY 2023-24 and 2025-26, and by 10% in FY 2026-2027, the penetration of electric-two wheelers is slated to reach about 72% by FY 2031-32.

Although it is estimated that the sale of electric two-wheelers will cross 220 lakh units by FY2028-29, the number may reach 250 lakh units if there is sufficient installed capacity of electric two-wheelers and charging infrastructure, according to the report.

Based on the analysis, the report said India’s shift to electric mobility, particularly in the two-wheelers segment, may happen faster than anticipated. The report has also constructed future scenarios based on three major factors influencing the market penetration of electric two-wheelers: demand incentives, battery cost, and vehicle performance in terms of range and power. 

The report also presents an incentive-driven scenario where the sales of electric two-wheelers can reach 54.91 lakh units by FY2031 and market penetration of 21.86%, provided there is a 2% reduction in battery cost and no change in range and performance.

Recent Articles

EAM Jaishankar’s diplomatic tour concludes with talks in Malaysia

March 28, 2024

During his visit to Kuala Lumpur, External Affairs Minister S. …

Read More

Mumbai is the newest billionaire capital of Asia

March 27, 2024

Mumbai is now the billionaire capital of Asia and third …

Read More

Chinese automakers may be interested in India’s EV push

March 26, 2024

By virtue of India’s decarbonisation efforts and consequent thrust towards …

Read More