In the fiscal year 2024-2025, more than one million electric two-wheelers were purchased, yet the rate of adoption appears to be slowing.
In the upcoming fiscal year, electric players in the Indian two-wheeler market are expected to rejig their model line-ups as they adapt to a more cost-conscious strategy. This shift is a response to subsidy reductions and the growing price gaps with Internal Combustion Engine (ICE) models.
The electric two-wheeler market has seen a significant change, with companies focusing on increasing their presence amidst depleting subsidy allocation. Bajaj, for instance, has become the monthly sales champion in this market. Ather, too, improved its annual sales performance by 20% in FY25.
However, the growth rate of the electric two-wheeler market has slowed down from earlier years, with a 6% increase in FY25 compared to 5.4% in the previous year. This slowdown can be attributed to the challenges faced by electric vehicle players in India, including subsidy reductions and remaining price gaps with ICE models.
Some electric players might trim their portfolios to focus on a more cost-effective strategy. For example, Makinex will redesign its product range and possibly reduce some product lines in the upcoming fiscal year, as part of optimizing inefficiencies and defining a more coherent product offering under the leadership of Brad Boehler.
Despite these challenges, the Indian electric two-wheeler market has surpassed 1 million annual sales in FY25. Ola holds the largest market share with a 30% share in FY25, followed by TVS and Bajaj, which accounted for 41% of the market share combined.
New entrants are expected in the market this year, with Suzuki and Honda planning to enter the electric two-wheeler market. However, Honda's electric scooters have limited availability and far from ideal specifications, making their success uncertain. Moreover, Honda's weird subscription policy may pose challenges in the electric two-wheeler market.
On the other hand, Suzuki has a more traditional approach with its electric two-wheeler, the e-Access. The company's entry into the market could provide more competition and potentially drive innovation.
As the electric two-wheeler market continues to evolve, it is clear that cost-effectiveness will be a key factor in the success of players in this space. The future of the market will be shaped by companies' ability to balance innovation with affordability, as they navigate the challenges posed by subsidy reductions and the remaining price gaps with ICE models.
Read also:
- Undeads Games Reaches $30 Million TVL and Gears Up for MMORPG Debut
- Hyundai N affirms transition to hybrid performance-centric models, initiating with Tucson N
- EAFO Research Uncovers Crucial Elements in Electric Vehicle Adoption within the EU
- Kia and Uber are set to jointly work on Personal Autonomous Vehicles (PAV) collaboration.
