India Electric Scooter and Motorcycle Market 2023-2030

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    1. Rising petrol prices, increased cost of scooters due to BS 6 implementations and subsidies for electric vehicles will drive the electric 2 wheeler market
    2. As of June 2021, there are ~32 electric scooter and motorcycle brands offering ~11 models in India. Ex-showroom prices vary between 40k-110k INR($550-$1,000)
    3. Less than 20 models are powered by Li-ion batteries and the majority still has Lead-acid batteries. Li-ion battery manufacturing is dependent on expensive imports
    4. The electric scooter market in India will remain concentrated in 8 tier-1 cities, at-least till 2023
    5. Electric scooters and motorcycles equipped with embedded connectivity is the #1 trend in India electric scooter and motorcycle market
    6. Multiple fleet-based operatives are also focused on electrifying their fleet, due to cheaper running prices as well as easier implementation of various sensor-based management systems such as vehicle tracking, charge present, software updates for usage etc.
    7. The market will be driven by both personal vehicles as well as vehicles for commercial purposes and fleets.






    Infographic detailing India electric scooter market trends, electric scooter market in india, electric scooter market share in indi



    The Indian two-wheeler market is completely dominated by low-cost products. More than 85% of two-wheelers sold in India cost less than $1,000. A very high 28% GST on all categories of two-wheeler has been already squeezing margins of OEMs.


    The entry level two wheelers like TVS XL, Bajaj CT 100 and Hero Splendour cost ~$550-$650 ex-showroom.These prices are the lowest globally for any powered two-wheeler. For reference, the average transaction price for two wheelers in Europe and the US was $3,900 and $9,600 respectively in 2020.


    Indian scooter market has an annual market volume of ~7 Million units and they are bought by diverse demographics. Therefore, electric vehicle manufacturers are targeting that segment first. Although, ATHER`s first electric scooter(priced at ~$1,800) failed to get expected volumes the company is betting on launching multiple new scooters at a comparatively lower price.


    Currently, Ather is priced from Rs 1.07 Lakh ($1,400) onwards across the country depending on state-wise subsidies. The pricing is close to multiple prominent scooters such as TVS N-torq etc. with decreased running price thereby alluring customers towards electric 2 wheelers.Ather sold 3,000 units in 2020 and is expecting to double that in 2021.


    The reduction of GST on electric vehicles from 12% to 5% in July 2019 is expected to drive India electric scooter and motorcycle market volumes in the medium term.


    The central government subsidy for two-wheelers i.e. Rs 15,000 per kWh of battery capacity, up to 40 per cent of the vehicle cost will help OEMs price electric 2 wheelers very close to ICE scooters especially in their target markets of Tier 1 and Tier 2 cities where the purchasing ability is higher.


    At present, city speed electric two wheelers(<40kph, 1kwH battery and <60km range) account for ~90-95% of India electric scooter and motorcycle market.



    The Indian market is dominated by utilitarian 100cc motorcycles and scooters. The motorcycles are popular in tier-3 cities and rural areas, whereas gearless scooters enjoy a strong following in urban areas.


    The automatic/gearless scooters,powered by small 100-125cc engines, are being looked at as a major opportunity for electric scooter motorcycle manufacturers. The implementation of BS 6 norms have increased the prices of the scooters across the country and the increasing fuel prices aren’t helping their cause.


    Due to the income decrease across the country following Covid 19, vehicle maintenance as well as running costs will be closely looked at which favors electric 2 wheelers but the initial price is still a hurdle along with range anxiety. The electric scooter and motorcycle market in India is estimated at 175k units in 2021, and is estimated to grow at XX% CAGR till 2030.






    Hero Electric has planned to invest ~$100 Million till 2023 to develop new vehicles, expand distribution and dealership network and increase production capacity to retain leadership. Although, the volumes are limited but looking at a huge market size and opportunity we expect many new entrants in the India electric and scooter motorcycle market



    Ather Energy now has a total funding of $140M(800 CR INR), as of June 2021. It’s first manufacturing plant was in WhiteField, Bengaluru, with an installed capacity of 20,000-25,000 units per annum.


    It wants to expand sales and distribution to 30 cities. It raised $35 million (260 CR INR) in its latest round of funding, started a new manufacturing facility as well as charging infrastructure in multiple big cities to attain 1 Million unit sales per annum by 2023-2024.Ather Energy has earmarked $20 Million(130 CR INR) to set up 6,500 charging stations across the country by 2023. Ather overall plans to spend Rs 635 crore from 2021-2026 to increase production, sales and infrastructure.


    In Jan 2021, Ather began EV manufacturing plant in Hosur, Tamilnadu. The annual capacity of the plant is 1,10,000 scooters and 1,20,000 battery packs.


    Hosur was chosen is because it’s just 50-60kms away from its R&D facility in Bengaluru and due to presence of TVS and Ashok Leyland the auto component supplier base is well established. Except for the battery cells, all components of the Ather scooter are sourced from India and Hosur will be a strategic point for production.



    Okinawa sold 5,600 units in 2020.It has acquired land near Bhiwadi, Rajasthan(Western India) for the new plant, which will have a total electric two-wheeler manufacturing capacity of one million units per annum- a 10X increase from the current capacity.


    It has improved localization to about 80%.  The company had been working on increasing localization in its scooters since 2017 therefore, it was able to meet the requirements as outlined under FAME II announced in March 2019.


    It also plans to increase the total number of dealerships from 350 dealers in 2020 to 500 dealers in the coming years.



    Ola Electric acquired Amsterdam-based Etergo BV in 2020. Ola also invested Rs 2,400 crore investment for setting up their manufacturing facility in Krishnagiri, Tamil Nadu. The vehicle is expected to launch in Q3 2021.


    The fast charger for the scooter is expected to charge the scooter up to 50% in 18 minutes for a 75 km range. The new scooter can come with a range of 150 km in one full cycle. The scooters developed and manufactured will also hit the European market mainly France, Italy, Germany and other western European countries.


    Ola will also be setting up over 1,00,000 charging stations across 400 cities and towns in the country. 2021 of the 5,000 charging points as part of this network will be set up in 2021-2022.



    Honda gears up to launch an exciting lineup of upcoming two-wheelers, including electric scooters, for the Indian market.Honda has big ambitions for the future, with a slew of new models on the way, particularly in India. Notably, the business introduced many electric scooters as well as other models geared exclusively for the Indian market. Here are some of Honda’s upcoming anticipated two-wheelers. 


    350cc cruiser motorcycle :Honda presently provides the H’ness throwback motorbike and the CB350RS with a cafe racer-inspired appearance on the CB350 chassis.


    These motorcycles enable Honda to compete with the Royal Enfield Classic 350 and Hunter 350. However, they lack a clear counterpart to Royal Enfield’s Meteor 350. This position, however, may alter in the near future.


    It’s quite likely that Honda’s future 350cc motorbike, which it plans to introduce around Diwali this year, would be a cruiser made to compete with the Meteor. Expect the same 348cc long-stroke single-cylinder engine used in the current CB350 motorcycles to be used, maybe with some tweaks.


    While Honda might perhaps fine-tune the gearing and sprocketing to make up for the existing engine’s lack of bottom-end power, a quality that is frequently desired in cruisers, this is a problem that may not be intrinsic to the engine.


    Two electric scooters: Honda will launch two new electric scooters in the forthcoming fiscal year 2024 to enter the rapidly growing electric two-wheeler industry. The design of the powertrains of these scooters will differ.


    According to recently revealed patent drawings, the initial model will have a stationary battery pack that is predicted to be mounted in the floorboard. The second variant, on the other hand, will include a detachable battery pack.


    The Honda Mobile Power Pack battery, which is progressively being implemented at exchange stations around the nation, is probably going to be used in this scooter.


    Honda could decide to market one or both of these scooters as the Activa electric or e-Activa in order to capitalise on the Activa’s excellent brand awareness. Suzuki used a similar strategy while developing the just-released e-Burgman electric scooter.


    125cc scooter and 160cc bike: Honda has more plans for gasoline-powered automobiles for the current fiscal year. The introduction of a new 125cc scooter and a 160cc motorbike is planned for FY24.


    The 125cc scooter is likely to have the same chassis as the Activa 125, but with a sportier design to compete with rivals like the TVS NTorq and Suzuki Avenis. The 160cc motorbike is expected to use the engine from the X-blade and Unicorn versions. However, there are no clear signs of Honda’s intentions with this bike. It’s probable that we’ll see an adventure-oriented version, similar to what Honda did with the Hornet 2.0-based CB200X.




    Rising Demand For Two-Wheeler Safety Technologies In India.India is the world’s largest two-wheeler market and a rapidly expanding automobile powerhouse. The country’s automobile sector has been forced to prioritise the development of safety systems as a result.


    In addition to reducing catastrophic accidents, researching and creating new technologies that meet people’s demands will also provide a significant number of job possibilities.


    The two-wheeler industry in India is expanding, and manufacturers are currently thinking about new norms and technology that will increase safety features. It forces producers to be creative and adaptable in order to modify internationally accepted technology to meet regional needs.


    It is primarily up to providers like us to supply the Indian market with cost-effective and dependable safety technology. Despite the epidemic, Statista reports that 15.12 million two-wheeler units were sold in India in FY21.


    A cheap cost of ownership and a rise in demand in urban and semi-urban regions are the main forces behind this trend. In order to generate technologies that are more suited to meet the demands of the local market while taking into account the requirements, situation, and conditions, automotive manufacturers have begun to invest in India.


    Many people in India commute mostly on two wheels, particularly in rural and II areas. Affordable safety technologies for the general market are therefore crucial. For instance, in lower-powered automobiles, one-channel ABS performs as well as dual-channel ABS.


    Continental unveiled the MiniMAB, a vehicle built on the tried-and-true ABS technology and created specifically for developing markets that are amenable to lower power cars. 


    Optimised Curve Braking, sometimes known as cornering ABS, is the next logical improvement following ABS. This technology will be especially useful for mid- to high-power motorcycles as it applies brakes on bends and corners to reduce traffic deaths.


    In curves or corners, when there is a high risk of falling owing to wheel lock, this function aids riders in using the brake. The lean angle data from the continental sensor box is used by the ABS braking system to account for the motorcycle’s tilted position.


    The ABS system adjusts its sensitivity depending on the gradient in order to minimise wheel lock while still delivering effective braking and steering, which enhances vehicle handling in bends and makes braking safer.


    Many people now like riding two-wheelers in hilly terrain or even off-roading to satisfy their enthusiasm for adventure motorcycling. When driving on a gravelly, muddy, or loose sand surface, the traction control system shows to be a crucial safety component.


    This safety function aids in preventing tyre slide on the driving wheel when accelerating on slick conditions and roadways. It makes it easier to accelerate and move effectively and suitably, which makes riding safer and increases the driver’s confidence.


    The wheel speed sensor data is used by the TCS to determine if the rear wheel is rotating more quickly than the front wheel. Following the detection of the speed differential, the traction control system assists in lowering the engine torque applied to the rotating wheel.


    lowering the likelihood of sliding or skidding as a result. The Traction Control System is expanded by the Electronic Drag Control, which strives to achieve the optimal balance between vehicle stability and deceleration in engine drag circumstances. The Electronic Drag Control further regulates excessive wheel slide. It effectively regulates the propulsion at the wheel and vehicle drag torque. 


    Advanced safety elements to match the riding performance have become essential with the surge in demand for high-performance motorbikes in India. The engine is necessary to provide the right amount of power to the wheel since high-performance bikes frequently produce a lot of power. The front lift protection safety function comes into play in this situation.


    This feature keeps an eye on the wheel behaviour to spot lift-off situations and instantly modifies the engine torque to halt the right propulsion at the wheel and prevent backward rollover and falls.


    Motorcycle retain & Go (MHG) is a crucial feature that enables riders to retain their bikes during an uphill or downhill stop without having to hold the brakes all the time as a result of the increased traffic on the highways.


    This gives the rider time to unwind, examine maps or other navigational aids, etc. The rider applies a specific hand lever to engage the MHG feature, telling the system to lock the front wheel.


    India has harsh weather since it is a tropical nation. As a result of the extremely hot road surfaces, which can cause low tyre pressure or pressure loss in the summer when temperatures can reach 45° C and more.


    By keeping track of the air pressure, the Tyre Pressure Monitoring System (TPMS) aids in maintaining ideal tyre pressure. Additionally, it helps with maintaining a safe driving environment and efficient braking. Low tyre pressure forces the engine to work harder to produce more power, which results in higher fuel usage.


    Such circumstances can be prevented using TPMS. In markets like India, high-end solutions like ARAS (Advanced Rider Assistance Systems) technology have a lot of promise.


    Two-wheelers typically employ rear view mirrors to track the passage of cars even on highways with abrupt twists. This does not provide the cars a complete perspective or sight. 


    The Blind Spot Detection system uses a radar sensor to monitor the rider’s blind areas in neighbouring lanes and can deliver visual alerts in the event of any approaching cars. Through the Lane Change Assist (LCA) function, this system may also warn of dangerous lane changes.


    Rear-facing radar sensors monitor the road behind and adjacent to the motorbike, alerting the rider if a lane change is risky at that moment.Most motorcycle riders are aware of their motorbike’s capacity to accelerate, but relatively few are aware of how quickly they can stop and how far they can stop.


      When the system determines there is a high likelihood of colliding with the car in front utilising a front radar sensor, the Forward Collision Warning function warns the rider by providing a visual warning.


    An autonomous braking technique or an emergency brake aid function would be an upgraded extension of the forward collision warning that helps to lessen crashes and their effects.On the other side, adaptive cruise control makes long distance riding on two wheels safer and more comfortable.


    This clever feature constantly maintains a safe distance from the car in front while still ensuring a comfortable ride. Even while travelling in an inclined posture, it uses a radar sensor to identify important items in front of the vehicle and automatically adjusts the



    Hero Electric and Okinawa are at present the market leaders with more than 65% combined market share in India. Among mainstream two-wheeler manufacturers, only Hero Electric, TVS and Bajaj have shown serious effort to launch electric vehicles.Hero electric dominated the market and was the market leader while Bajaj Cheetak was only able to sell 1,200 units in 2020.


    There are 32 OEMs including various startups such as Tork, Emflux, Ultraviolette etc. as well as OEMs who source kits from China and assemble them in India. In 2020, only 12 OEMs achieved sales in triple digits and beyond in India.



    1. How many Electric Scooters are manufactured per annum in Global ? Who are the sub-component suppliers in different regions?
    2. Cost breakup of a Electric Scooter and key vendor selection criteria
    3. Where is the Electric Scoaoter manufactured? What is the average margin per unit?
    4. Market share of Electric Scooter manufacturers and their upcoming products
    5. Cost advantage for OEMs who manufacture Electric Scooter in-house
    6. key predictions for next 5 years in Electric Scooter
    7. Average B-2-Bl Electric Scooter price in all segments
    8. Latest trends in Electric Scooter, by every market segment
    9. The market size (both volume and value) of the Electric Scooter market in 2022-2030 and every year in between?
    10. Production Electric Scooter, by suppliers and their OEM relationship
    1 Market Segmentation 3
    2 Executive Summary 5-6
    3 Introduction 7-10
    4 Insights from Industry stakeholders 11
    5 Key criteria EV powertrain vendor selection by two-wheeler OEMs 12-14
    6 Electric two-wheeler manufacturing in India 15-18
    7 Breakdown of Electric two-wheelers by sub-component` cost 19-22
    8 Impact of BS VI emission norms on Electric two-wheeler market 23-26
    9 Overview of Batteries, Motors and Power electronics used on two wheelers in India 27-32
    10 Role of Chinese Imports 33-37
    11 Market Size ,Dynamics and Forecast By City type 38-57
    12 Market Size ,Dynamics and Forecast By Price 58-75
    13 Market Size ,Dynamics and Forecast By vehicle Type 76-92
    14 Market Size ,Dynamics and Forecast By Component 93-107
    15 Competitive Landscape 108
    16 Market share of vendors-2019 109
    17 OEM-supplier relationship in Electric two-wheeler market 110-111
    18 Company Profiles 112-116
    19 Unmet needs and Market Opportunity for suppliers 117
    20 Conclusion 118
    21 5 Key predictions 119-120
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