India is at an early stage of the ‘transition to electric vehicles’ phase. An increase in concern over pollution and other environmental issues, and lower operating costs of electric vehicles in comparison to fuel-driven vehicles are the major reasons behind the increased adoption of electric bikes, consequently, boosting market growth. With the government encouraging the adoption of electrified vehicles, the electric bikes market in India is expected to grow further in the coming years. The cost of running electric bikes is about INR 10 for 70 Km, whereas the same distance can be covered by a conventional counterpart at a minimum cost of INR 102.
As of FY 2020, the electric bikes market in India was valued at INR 3.58 Bn, and is expected to expand at a compound annual growth rate (CAGR) of ~52.67% during the 2020-2025 period, to reach INR 29.67 Bn by 2025.
In February 2018, the Indian government’s policy think tank, Niti Aayog proposed and mandated the electrification of all two wheelers with a displacement capacity of below 150 cc by March 2025. With this policy mandate, the two-wheeler industry is likely to experience a rapid transition toward electric mobility. These initiatives have been undertaken to curb pollution and reduce the country’s import bills by INR ~1200 Bn by 2025. Further, to boost this policy and accelerate the adoption of electric vehicles (including bikes), the Department of Heavy Industry in association with the Society of Indian Automobile Manufacturers implemented the schemes of ‘FAME’ and ‘FAME II’. Other government initiatives anticipated to encourage the adoption of electric bikes include the National Electric Mobility Mission Plan 2020 (NEMMP 2020), the Atmanirbhar Bharat Abhiyan, and the Make in India campaign.
COVID-19 impact analysis:
The nationwide lockdown in the wake of the pandemic has marked a long-term positive impact on the electric bikes market in India. The demand for electric bikes has increased amid the pandemic, owing to the fear of virus transmission through public transport. The growing demand for the electric ones has also been supported by the government’s mandatory electrification policy. Moreover, the lockdown has intrigued realisation within people that the use of internal combustion engine vehicles cause 60% more pollution than their electrified counterparts. After the upliftment of the lockdown, adoption of electric bikes as a personal mode of transport surged multifold, and the growth is likely to continue in the long run as well.
Electrotherm (India) Limited
Ampere Vehicles Private Limited
Ather Energy Private Limited
Avon Cycles Limited
Hero Electric Vehicles Private Limited
Lohia Auto Private Limited
NDS Eco Motors Private Limited
Okinawa Autotech Private Limited
Tork Motors Private Limited
Tunwal E-Bike India Private Limited