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What Is The Future Of The Electric Bike Industry In India In The Coming Ten Years

As we are all aware, two-wheelers make up a sizeable portion of the Indian motor vehicle ecosystem and are a necessary form of transportation in some areas. Although two-wheelers have been present since the early 20th century, millions of Indians have only recently begun incorporating them into their daily lives.

There are now a wider variety of two-wheelers in India, including scooters, motorcycles, mopeds, and motorcycles that are mostly petrol bikes. However, there is a small but rapidly expanding market for electric two-wheelers, or “e-two-wheelers.”

The electric vehicles are becoming more popular and have been in the news because of the apparent advantages they possess. How long, though, will these e-two-wheeler businesses last? So, it stands to reason that every prospective buyer must consider this question before making a purchase.

But India has now made it clear that by 2030, they want no less than 7 million EVs on their highways. This looks like a difficult task, and India will have to work hard to make it happen. Let’s examine the Indian Electric Two-Wheeler Industry to see if it can endure.

Pioneer of Electric Two Wheeler in India

Despite consistent growth over the past few years, the electric two-wheelers market is still relatively small. 2013 saw the debut of the first electric scooter by the firm Ather Energy, and things haven’t looked back since.

In 2016, the business sold 1,000 units of its Thunderbird model, and in 2017, it produced over 3,000 units. The company also has plans to introduce and sell over 100,000 units of electric motorcycles in the upcoming years. In India, several different electric bike brands have started producing electric two-wheelers.

In India, the two-wheel electric vehicle market is still in its infancy. A recent government initiative to make all vehicles more fuel-efficient.

The government recently unveiled a plan to convert all automobiles to electric propulsion by 2030.

Government Supporting Electric Vehicle Manufacturing

The two-wheeled electric vehicle market has long been the focus of discussion. The primary cause of this is the desire to limit pollution, which is increasing. The transition to electric cars is a positive development. However, choosing which vehicle to purchase requires consideration of several different variables.

As part of its “Make in India” strategy, the Indian government has stated that it will invest $60 billion in the development of electric vehicles by 2025. Sales are expected to increase by 50% over the following five years.

Since introducing electric two-wheelers to the market in 2013, when What sold only 1,000 units, the number of units sold each month has constantly climbed. Still, new figures from SIAM indicate that this number has already increased to over 20,000 units every month (Society of Indian Automobile Manufacturers).

To cut pollution and promote green energy, the Indian government vigorously promotes using electric vehicles (EVs). By 2030, it hopes to reach its goal of entirely electric transportation. The government has also proposed several incentives, including improved EV infrastructure and reduced GST.

In India, the market is still in its infancy, and e-commerce giants like Flipkart, Amazon, etc., are primarily responsible for the demand for electric two-wheelers. Due to inadequate infrastructure, a lack of consumer knowledge, high costs, and a preference for traditional bikes over electric bikes, demand for electric vehicles have grown slowly.

Growth of Electric Two-Wheeler Companies in India

In the Indian market, electric two-wheelers are becoming more popular. Several businesses have entered the electric two-wheeler market in the past two years. These companies include TVS Motor Company, Zoomcar, Ola Electric, Hero Electric, and Ather Energy.

Some of these businesses have already introduced their products, while others will do so soon. Since there is more market competition, consumers will benefit from better outcomes at reduced costs. Before these businesses can become lucrative, there are still a few obstacles they must overcome.

What Is Propelling the Growth of Electric Two-Wheelers? 

In India, electric two-wheelers are still a relatively new idea. The concept is not new, though, as electric scooters and bikes have been popular in China for a while. Due to traffic congestion and pollution levels, Indian cities have seen an increase in the number of people using public transportation, which has increased the use of electric vehicles. 

There is no greater need than ever to find a substitute for traditional transportation. Over the past few months, a significant increase in people choosing electric two-wheelers as their primary mode of transport has occurred, notably, since the Delhi government announced its intention to purchase 10,000 battery-powered bikes from BSF for use by its security personnel.

The following are the leading causes of this growth:

  • An increase in available resources.
  • Aid from the government and subsidies.
  • Environmental awareness and climate change are on the rise.

(Sales of Electric Two-Wheelers in India by Brands)

What Is Restricting the Growth of the Electric Two-Wheelers?

In India, electric two-wheelers are becoming more and more popular. In India, the market for electric two-wheelers is projected to develop at a healthy rate and reach USD 3 billion by 2025. However, a few problems are limiting the industry’s expansion in India:

#1 High Manufacturing Cost

Due to the usage of pricey lithium-ion batteries and other electronic components, an electric two-wheeler has a higher production cost than a traditional bike. A typical motorbike costs between USD 500 and USD 600, whereas an electric scooter or bike costs roughly USD 1,600.

According to experts, if the price of the raw materials required to manufacture electric motorcycles decreases, it will drastically lower the cost of production as a whole.

#2 Limited Availability of Charging Infrastructure

There aren’t enough electric bike charging stations in India, which will limit their expansion over the next several years unless manufacturers and government organizations invest a lot of money in constructing charging infrastructure throughout India’s cities and towns.

Users may find it challenging to charge their batteries while traveling between cities or towns in India because there are only 1,000 charging points nationwide as of December 2018, equating to one charging point every 100 kilometers.

#3 Low Battery Life

Another issue this industry faces is that its electric bike batteries do not last long enough before recharging; frequently, they only stay 10 kilometers or less.

The Hype Surrounding the Two-Wheeler Industry

The sector is shrouded in hype, more than just a marketing ploy. The government has extensively promoted the adoption of electric vehicles in India. What will reduce pollution if many commuters use these vehicles. Lowering fuel imports and enhancing job creation also anticipates economic gains.

The government has established incentives for such purchases to persuade individuals to switch. For instance, Section 80EE of the Income Tax Act provides buyers with an extra income tax deduction

Thus, this entitles them to a deduction of Rs. 1 lakh for an electric vehicle and Rs. 50,000 for a scooter or motorcycle powered by electricity. Thus, you can deduct up to Rs 50,000 from your taxable income for each new two-wheeler you acquire after March 31st, 2022; this is double the amount you could deduct in FY2020-2021. This is applicable if you paid more than Rs 2 lakh for it.

Future Directions For the Two-Wheeler Market

The market for electric two-wheelers is expanding quickly. Many businesses are attempting to develop novel goods and services. Future predictions for the electric two-wheeler market indicate that it will grow and gain popularity

The promising trends that we can anticipate during the next several years include the ones listed below.

Increase in the Number of Electric Bikes

In the upcoming years, there will be an increase in the number of electric bikes and scooters as more people get interested in them for various reasons, including the desire to save money on gasoline and lessen pollution. 

Electric scooters or bikes will become more popular among commuters

One of the main reasons people choose electric scooters instead of cars, or public transit is for commuting. When they commute on an electric bike, they do not have to worry about snarling traffic or having trouble finding a parking spot.

Increasing R&D Investments

Major players worldwide are pouring millions of dollars into R&D projects to create new technologies and advance those already in use. For instance, since 1984, Shimano Inc., a business with headquarters in Japan, has concentrated on developing innovative products, including electronic shifting mechanisms, road cycles, and mountain bikes. In 1988, it also purchased Cannondale Bicycle Corporation, allowing it to solidify further its position as a critical player in the biking sector.

Measures to Take to Maintain the Two-Wheeler Industry’s Growth

The two-wheeler market in India has been growing at a healthy rate of about 20% per year. Urbanization growth and rising disposable income have fostered this expansion. The demand for two-wheelers is also driven by a greater preference for owning a car. If we do not take some action right away, this growth might not be long-term sustainable.

The infrastructure of India’s roads, motorways, and other modes of transportation needs to be improved as a first step. As a result, this will significantly enhance the flow of people and products between cities and states, creating millions of new jobs.

The next stage would be to foster an atmosphere that is supportive of innovation and R&D. This would guarantee the creation of new technology that will aid in lowering pollution levels in our cities and towns.

Thirdly, we must promote the use of electric vehicles (EVs), which may significantly lower pollution levels in our cities and towns while lowering transportation costs because EVs require less maintenance than conventional internal combustion engine vehicles (ICEVs). 

Conclusion

India should concentrate its efforts on establishing a reliable electric two-wheeler manufacturing base. The market will prosper if we cultivate that.

There is an excellent opportunity for the electric two-wheeler market to expand in India. The government must support the call by lowering tariffs and incentivizing suppliers and makers of electric two-wheelers. As a result, producers will have to compete more fiercely, and consumers will have greater access to parts. As the cost of building the infrastructure necessary to support electric two-wheeled vehicles (such as charging stations, additional electricity supply, etc.) would substantially impact demand for such cars, the government should pay particular attention to minimizing these costs.

With the opening of new production facilities, the switch away from fossil fuels will happen swiftly. One day, very soon, individuals in India and all across the world will have the easy option of switching to an electric bike or vehicle.

# How Many Electric Two-Wheelers Are There In India?

Around 1.4 lakh two-wheelers were sold in India in 2021.

# Which Is The Best Electric Two-Wheeler In India?

The leading electric two-wheeler brands in India are Ola S1, Okinawa iPraise, TVS iQube, and Bajaj Chetak.

# Which Is The Largest Selling Electric Scooter In India?

Hero Electric is the largest selling scooter brand in India.

# Which Electric Bike Is Best In India?

Best electric scooters and electric bikes in India:

Model Price Top speed

Model Price Top Speed
Ather 450X ₹1,32,426 80 kmph
Revolt RV 400 ₹1,29,463 80 kmph
Ola S1 Pro ₹1,10,149 115 kmph
Bajaj Chetak ₹1,47,775 78 kmph

# How Long Does An Electric Bike Battery Last?

With proper maintenance and care, the battery of an e-bike lasts for 3 to 5 years. Although, Lithium batteries can gradually lose their capacity over time, even when unused.

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