Electric two-wheelers (E2Ws) are rapidly gaining traction in India, according to a new report by the Boston Consulting Group (BCG) titled “Surging Ahead: How Electric Two-Wheelers Are Rapidly Gaining Popularity with the Diverse Indian Consumer.”
The E2W market has witnessed explosive growth, surging from a mere 0.45 lakh units sold in FY 2021 to around 9.5 lakh units in FY 2024. This translates to a monthly average of over 80,000 new E2W customers joining the market in FY24.
The BCG report highlights the changing consumer landscape driving this E2W boom. While traditional demographics and geographic factors influence buying decisions, the study reveals a more nuanced reality. A wider range of factors, including individual needs and usage patterns, are shaping consumer choices.
The report identifies ten distinct “demand spaces” that categorize consumers based on their specific requirements and how they use two-wheelers. These categories range from budget-conscious buyers seeking basic transportation to those prioritizing high-performance, eco-friendly, or stylish options.
This segmentation underscores the diverse motivations behind E2W adoption. Some consumers are drawn to the economic benefits of electric vehicles, including lower running costs and government subsidies. Others are attracted to the environmental advantages and the modern appeal of electric mobility.
The findings from the BCG report suggest that manufacturers and retailers need to adopt targeted strategies to cater to these varied consumer segments. By understanding the specific needs and preferences within each “demand space,” E2W companies can develop products, pricing plans, and marketing approaches that resonate with different types of buyers.
This shift toward electric two-wheelers is poised to reshape India’s transportation landscape. As E2W technology continues to improve and consumer adoption accelerates, the future of mobility in India appears increasingly electric.
