India is at the initial stages of making the transition to electric vehicles. Concerns regarding pollution and other environmental issues, along with lower operating costs of electric vehicles in comparison to fuel-drive ones will result in the increased adoption of electric bikes, in turn boosting market growth.

With the government encouraging the adoption of electrified vehicles, the electric bikes market in India is expected to grow in the coming years. The cost of running electric bikes is about INR 10 for 70 km, whereas the same distance using conventional variants cost a minimum of INR 102.

In FY 2020, the electric bikes market in India was valued at INR 72.34 Mn. It is expected to expand at a compound annual growth rate (CAGR) of ~11.16% during the 2021 – 2027 period, to reach INR 143.34 Mn by 2027.

Government initiatives:
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 150cc, by March 2025. With this regulation, the two-wheeler industry will experience a rapid transition toward electric mobility.

Further, the government brought great changes in the Department of Heavy Industry in association with the Society of Indian Automobile Manufacturers schemes of ‘FAME’ and ‘FAME II’. Other government initiatives which will promote 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 will have a long-term positive impact on the electric bikes market in India. The demand for electric bikes increased amid the pandemic because people were apprehensive about traveling using public transport. The growing demand for electric bikes has also been supported by the government’s electrification policy.

Moreover, people have started to realize that vehicles with combustion engines cause 60% more pollution than the electrified variants. After the lockdown was lifted, the adoption of electric bikes as a personal mode of transport surged. This growth is likely to continue in the long run as well.

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The post Electric Bikes Market in India 2021 first appeared on CRI Report.

Market Insight
Electric two wheelers are poised to be the game-changer for the two-wheeler industry. Although electric bikes comprised a minimal share (~0.6%) of the total two-wheeler sales in India in FY 2019, its sales with respect to the previous year have increased by about 129%. This growth can be attributed to the government’s initiatives towards the electrification of bikes. Other factors that have influenced the adoption of electric bikes are rising concern over air pollution and the lower ownership and maintenance costs of electric bikes. 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.

Government Initiatives
In February 2018, the 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 the policy mandate, the automobile industry is likely to experience a rapid transition towards electric mobility. Such initiatives were taken to curb pollution and reduce the country’s import bills by INR ~1200 Bn by 2025. The Department of Heavy Industry in association with Society of Indian Automobile Manufacturers implemented the schemes of FAME and FAME II. Under FAME and FAME II, the government outlaid a budget of INR 107.95 Bn, directed towards the faster growth of electric vehicles.

Competition Analysis
The industry is dominated by new entrants in the market, such as Electrotherm (India) Limited, Hero Electric Vehicles Private Limited, Ampere Vehicles Private Limited and NDS Eco Motors Private Limited. Other market participants include Ather Energy Private Limited, Avon Cycles Limited, Lohia Auto Private Limited, Okinawa Autotech Private Limited, Tork Motors Private Limited and Tunwal E-Bike India Private Limited. The market is currently being dominated by niche players as they have already set up their operations with modern infrastructure, advanced technologies and in-house charging facilities. On the other hand, the well-established manufacturers of conventional two wheelers are yet to expand their footprint in this market. The entry of these established players is anticipated to create fierce competition within the market.

Companies Covered
• 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

Indonesia Electric Two-Wheeler Market Outlook 2030: Industry Insights & Opportunity Evaluation, 2019-2030

The post Electric Bikes Market in India 2019 first appeared on CRI Report.