Electric Two-Wheeler Market Scenario: The Boom and Beyond…
It’s a tricky situation for a two-wheeler buyer in India. With the government going all berserk with electrification one has to choose an efficient option for mobility in future. Recently, automakers have started introducing their electric vehicles in the market. One can say that the electric market is at the initial stage. It is also confirmed that April 2020 will mark the start of BSVI engine vehicles in India. With so much fluctuation in the market, buyers need assistance from manufacturers. It is better to specify the need and choose a viable option. Government has declared that all ICE three-wheeler vehicles need to be shifted to electric by 2023 and all two-wheelers up to 150cc by 2025. This conundrum may well work in favour of the consumer as he may better option to choose from.
For automakers, they’ll enjoy the drift in the market. A piece of heartening news from the government has already cheered the e-mobility segment. Government has reduced GST on electric vehicles from 12% to 5% and on electric chargers from 18% to 5%. With the quest to reduce fuel dependency, this step will boost the electric startups and the ecosystem. Electric two-wheeler market is a happening place and will see growth soon.
Electric Scooter Market:
Electric scooter holds the largest share in the electric two-wheeler sector. Ideally, the cost of manufacturing electric scooter is less and they are affordable to the end-user. Under FAME (Faster Adoption and Manufacturing Electric Vehicles) scheme government-initiated subsidies to the electric vehicle as well as charging system developers. Subsidy reduces the end cost of an EV and the customer finds it reasonable to purchase. With the opportunity to expand, automakers put their foot forward and launched their respective e-scooters in the market.
Hero Electric, Okinawa, Ather Energy, Avon Cycles, Ampere Vehicles Pvt Ltd and many others have introduced their electric scooter in the market. Price is ranging from 60k to 1.2 lacs and electric range is around 70km to 200km. With market to capture, global e-scooter brands have entered in this race. Though it is a very early stage in the market, the consumer hasn’t given much thought about replacing the current set of two-wheelers. It’ll be interesting to see how the sector performs and growth happens.
Electric Motorcycle Market:
Tesla with cool technology and the glamorous look created hype around electric cars. Such is the popularity that some of the electric bike makers have idolized that approach in designing e-bike. Indeed, e-bikes haven’t caught much attention as the scooter has. The fleet size is small. The cost of an electric bike is much higher compared to an e-scooter. Startups like Tork, Revolt, Emflux One are planning to launch their electric motorcycle in India. It is still very early to comment on this section as they’re very few developments in the market. The customer currently prefers a petrol bike over any other. It’ll be a task to convince people to shift to an electric bike.
Other than scooters and motorcycles, e-bicycles have performed exceedingly well. E-bicycle has a separate customer base. Fitness enthusiast, bicycle riders, trekkers are ready to opt for e-bicycle. Kids will be a valuable prospect for e-bicycle manufacturers. As India investing and pushing the industry to go electric, it will be interesting to see how the customer reacts to this proposition.
Cost and maintenance are the key selling point to end customer. Charging infrastructure, repair cost, customer awareness will be among major challenges in front of electric two-wheeler industry. Strategic planning, consistent innovation, advanced technology and patience will be key for a brighter future of this industry.