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The Future of Electric Two-Wheelers in India

Author IconOben Electric
Date Icon Mon Jul 08 2024

Growing urbanisation and road congestion in India have called for a shift in the modes and forms of mobility. Over the past few years, Indian consumers have increasingly opted for Electric Vehicles (EV) as their primary mode of commute, a trend driven by a rise in environmental awareness, and government support. 

The Economic Survey 2023 reveals how the domestic EV market is expected to grow at a compounded annual growth rate (CAGR) of 49% between 2022 and 2030, reaching 1 crore units in annual sales by 2030.

Government Support for Electric Two-wheelers in India

The Government of India is taking active steps towards promoting electric two-wheelers in India in a bid to invest in a greener future. In fact, if reports are to be believed, the government is keen on making India a 100% EV nation by 2030.

In 2019, the government introduced the Faster Adoption and Manufacturing of Electric Vehicles (FAME) subsidy to bridge the gap between the prices of Internal Combustion Engine (ICE) and Electric Vehicles. In 2021, the government revised the subsidy to further boost the adoption of EVs. With the increased subsidy, reduced cost of ownership, and rising fuel prices, there is an even stronger case for the Indian consumer to move to electric mobility.

Additionally, the government has offered income tax benefits on the purchase of EV 2-wheelers. Under section 80EEB of the Income Tax Act, you may avail of a deduction of up to INR 1, 50,000 on the interest component of a loan taken to buy an electric vehicle.

Despite the push by the government, the EV industry remains at a nascent stage in the country. However, demand is continually mounting due to a confluence of factors and shifting consumer preferences. 

TElectric two-wheelers, in this scenario, are also rising up to the occasion, heralding the promise of a greener tomorrow. 

Reasons for the Growing Popularity of Electric Two-Wheelers

With their affordability, innovation, and sustainability, electric two-wheelers are rapidly gaining popularity among younger users. Let’s take a look at some of the reasons why the future of electric two-wheelers is promising:

1. Reliability

The reliability offered by EV two-wheelers is an essential factor contributing to their increasing sales. Advancements in battery and electric motor technology have resulted in higher dependability and longevity of these vehicles. Models available on the market today offer consistent power with efficiency and smooth acceleration. Additionally, EV models have a strong build quality, leading to minimal breakdowns.

2. Sustainability

Rising urbanisation in India has sparked concerns around existing pollution and congestion levels. An ideal emission-free alternative to traditional pollution-generating ICE models, EV two-wheelers have emerged as a long-term solution for addressing long-standing environmental apprehensions, offering a pathway that aligns well with sustainability objectives.  

3. Affordability

The Indian consumer is known for being price-sensitive. Electric two-wheeler bike prices are no longer steep. Once considered premium, electric two-wheelers are now more affordable due to years of innovations by manufacturers. Moreover, the reduced maintenance costs associated with electric vehicles also add to cost savings for buyers. The affordability of electric two-wheelers in India thus appears to strongly justify the adoption of green mobility.

The Future of the Electric Two-Wheeler Industry

The EV industry is growing rapidly, both in India and internationally. In the future, we are likely to see some key trends emerge with regard to the adoption of electric two-wheelers in India.

1. Increased Number of Electric Bikes

Due to the numerous benefits offered by e-bikes - affordability, sustainability and reliability – we are likely to see much higher numbers on the road. Consumers will also take a greater interest in EVs to save money on fuel, a cost that has only gone up over time.

2. More Usage for Commuting Purposes

People will choose electric two-wheelers for commuting instead of cars or public transport. These vehicles glide easily through heavy traffic and prove to be more cost-effective in the long run. Again, given rising fuel prices, consumers will look to save on daily commute costs.  

3. Increased R&D Investments

Around the world, major automotive players are making investments worth billions in research and development (R&D) for EVs. In India, too, automobile manufacturers will double down on R&D investments to develop new e-bike technologies for capturing the market share. As manufacturers invest heavily in EV tech, electric two-wheelers will likely become more practical, efficient, affordable, and integrated into the broader sustainable transportation ecosystem.T

In a Nutshell

The future of EVs in India looks promising. With advancements in tech, R&D investments, and government support, EV manufacturers in India are all set to grow their portfolio of offerings to consumers, optimising both performance and cost in models. The government also needs to work towards reducing costs related to EV charging infrastructure to see the trend truly skyrocket.

Visit the Oben Electric website to participate in a new electric revolution!