February 2, 2023
India’s total electric vehicle (EV) penetration, including 2W, is 3%
India is the world’s largest two-wheeler (2W) market, with an estimated 375–400 million 2Ws on the road
An increase in the players in the E2W space is one of the critical drivers of growth
Though EVs are costlier than their counterparts with Internal Combustion Engines (ICEs), their running costs are far lower comparatively
India’s electric 2-wheeler (E2W) sales are expected to reach 22 million by 2030, and their market penetration rate is expected to reach 80% by the same period, according to a report by Redseer Strategy Consultants.
According to the report, India’s total electric vehicle (EV) penetration, including 2W, is 3% while in USA and China, it is 63% and 56% respectively, as of calendar year (CY) 2022. An increase in the players in the E2W space is one of the critical drivers of growth, allowing consumers to have more options, and pushing better adoption across price points. Additionally, E2W sales across India are on the rise in tier-3 and tier-4 cities, the report added.
The report further said that simple and easy-to-assemble products led to the foray of several players in the country’s E2W space. Though EVs are costlier than their counterparts with Internal Combustion Engines (ICEs), their running costs are far lower comparatively.
Experts said that E2Ws would be a preferable choice for players such as food aggregators, last-mile delivery partners, and daily commuters for whom the total cost of ownership can be lower by over 50% compared to an ICE vehicle.
According to media reports, India is the world’s largest two-wheeler (2W) market, with an estimated 375–400 million 2Ws on the road.
Potential measures
The report said that charging infrastructure companies will become critical drivers of adoption, and consumers and regulations will reward players with technological and manufacturing sophistication, leading to a more consolidated market. It suggested that Additionally, the E2W ecosystem must work on adaptability, awareness, availability, and affordability to achieve the 80% penetration rate.
Source: Hindu Businessline