USD 893 million in revenue was generated by the Indian electric scooter and motorcycle market in 2022, which is predicted to touch USD 6,161 million by 2030, growing at a 27.30% CAGR through 2030, as per a report by P&S Intelligence.
This growth is owing to favourable government policies, surging requirements for zero-emission vehicles, mounting demand for energy-efficient commutes, and growing fuel prices.
In the future, electric scooters, especially those with a medium speed range (40–80 km/h), will rule the market. Their sales in India are being fueled by the availability of a variety of models in this speed range, their affordability, and their viability as an alternative to the traditional gasoline-powered ones.
Moreover, the category of motorcycles will grow in the years to come, as manufacturers are expected to introduce a number of electric motorcycle models in the nation.
With a market share of over 80%, 48V batteries are the most widely utilized power source in this industry. Due to the affordability, usability, and safety of scooters with 48V batteries, the market in this category is expected to continue to grow.
India’s largest two-wheeler market is located in Uttar Pradesh, where electric vehicle adoption is steadily rising.
Uttar Pradesh is the largest two-wheeler market in India, with the penetration of electric variants also continuously increasing in the state. The requirement for these vehicles from the major tier-2 and tier-3 cities is increasing. In addition, owing to the high growth potential in this state, the major OEMs’ focus on increasing their share, by expanding their dealer network, is benefiting this domain. As per The Times of India, Uttar Pradesh has 255,700 electric vehicles registered, the highest of any state.
People in the major tier-2 and tier-3 cities of the state are increasingly purchasing these vehicles. This sector benefits from the major OEMs’ efforts to improve their share, by extending their dealer network, due to the significant growth potential in this state.
The market share of electric scooters powered by removable batteries has dramatically grown since 2017. Removable batteries have become a solution to the lack of charging infrastructure and low driving range of EVs.
Furthermore, people may easily remove the battery from their automobile, transport it, and plug it into a standard residential electricity outlet. Therefore, it is expected that the technology will significantly influence the market and double the rate of vehicle electrification in the nation.
In the country, 50% to 60% of the overall price of EVs is because of the battery. Li-ion battery costs have dropped significantly over the past ten years at a pace of around 30% yearly. In the coming years, the decline will continue at an annual average of about 10%, thus making these vehicles more affordable for the general public.