India Electric Scooter and Motorcycle Market 2019-2025

November 27, 2019
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INDIA ELECTRIC SCOOTER AND MOTORCYCLE MARKET

 

KEY FINDINGS

  1. As of Nov 2019, there are ~35 electric scooter and motorcycle brands offering ~90 models in India. Ex-showroom prices vary between 40k-110k INR($550-$1,000)
  2. 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
  3. In 2020-2022 , more than 100+ new launches are planned by 20 new and existing OEMs
  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

Info Graphic : electric two-wheeler market in india, electric two wheeler market in india , electric motorcycle market size

 

MARKET SEGMENTATION

Infographic detailing India electric scooter market trends

 

MARKET DYNAMICS

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 category 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 ~$500-$600 ex-showroom.These prices are lowest globally for any powered two-wheeler. For reference, average transaction price for two wheelers in Europe and US was $3,700 and $10.600 respectively in 2018.

 

Indian scooter market has an annual market volume of ~7 Million units and they are bought by a diverse demography. 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 bettting on launching multiple new scooters at a comparatively lower price.

 

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.Also, the subsidy now offered to the tune of $150 per kWh(post certification) is an important step taken by the Indian government to boost India electric scooter and motorcycle market.

 

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

 

MARKET SIZE AND FORECAST

The Indian market is dominated by utilitarian 100cc motorcycles and scooters. The motorcycles are popular in tier-3 cities and rural areas, whereas gear-less scooters enjoy strong following in urban areas.The automatic/gearless scooters,powered by a small 100-125cc engines, are being looked at as major opportunity for electric scooter motorcycle manufacturers.

 

The electric scooter and motorcycle market in India is estimated at  150k units in 2019 , estimated to grow at XX% CAGR till 2025.

 

 

 

COMPETITIVE LANDSCAPE

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 and Bajaj have shown serious effort to launch electric vehicle. Honda India and TVS are yet to showcase any electric product.

 

OEM`S EXPANSION PLANS FOR INDIA ELECTRIC SCOOTER AND MOTORCYCLE MARKET

HERO ELECTRIC

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

Ather Energy now has a total funding of $114M(800 CR INR), as of Dec 2019. It currently has one manufacturing plant 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 $51 million (360 CR INR) in its latest round of funding, plans to set up 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.

In Nov 2019, Ather announced that it will be setting up a EV manufacturing plant in Hosur, Tamilnadu. The reason why Hosur was chosen is because its  just 50-60kms away from its R&D facility in Bengaluru and due to presence of TVS and Ashok Leyland the auto compoenent supplier base is well established. 

 

OKINAWA

Okinawa sold 45,000 units in the previous fiscal year (FY2018-19).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- 10X increase from current capacity.

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

 

It also plans to increase the total number of dealerships from 300 dealers in March 2019 to 500 dealers in coming years.

 

 

COMPANY PROFILES
  1. Hero Electric
  2. Ather Energy
  3. Benling
  4. Bajaj Auto
  5. Okinawa Autotech
  6. Avan Motors
  7. REVOLT
  8. 22Kymco
  9. YoByks
  10. Ampere(Greaves Cotton)
THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS
  1.   Market Size and Forecast of Electric scooter market in India(Volume and Value)
  2.   Market Trends,risks, drivers and opportunities in  India electric scooter market
  3.   Market share of electric scooter manufacturers in India
  4.   Growth strategy of electric scooter manufacturers in India
  5.   Impact of upcoming BS VI emission norms on the electric scooter market in India
  6.   The impact of new electric two-wheeler startups on the motorcycle market in India
1Market Segmentation3
2Executive Summary5-6
3Introduction7-10
4Insights from Industry stakeholders11
5Key criteria EV powertrain vendor selection by two-wheeler OEMs12-14
6Electric two-wheeler manufacturing in India15-18
7Breakdown of Electric two-wheelers by sub-component` cost19-22
8Impact of BS VI emission norms on Electric two-wheeler market23-26
9Overview of Batteries, Motors and Power electronics used on two wheelers in India27-32
10Role of Chinese Imports33-37
11Market Size ,Dynamics and Forecast By City type38-57
12Market Size ,Dynamics and Forecast By Price58-75
13Market Size ,Dynamics and Forecast By vehicle Type76-92
14Market Size ,Dynamics and Forecast By Component93-107
15Competitive Landscape108
16Market share of vendors-2019109
17OEM-supplier relationship in Electric two-wheeler market110-111
18Company Profiles112-116
19Unmet needs and Market Opportunity for suppliers117
20Conclusion118
215 Key predictions119-120
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