Electric Two-wheeler Vehicle Sales to Reach 22-Million in 2023 in India

According to a report, India’s sales of electric two-wheelers are anticipated to reach around 22 million by 2030 due to the demand for affordable transportation and the focus on lowering carbon emissions. In the 2022 calendar year, India’s overall EV penetration, including two-wheeler sales, was approximately 3%. India is primarily a market for two-wheelers.

According to Redseer Strategy Consultants’ report, markets in the majority of developed nations are dominated by four-wheelers, with 63% and 56% penetration, respectively, in the United States and China. It was noted that even though electrification of mobility is still in its infancy in India, there is a significant amount of room for expansion.

Since electric vehicles have a lower Total Cost of Ownership (TCO) than gasoline-powered vehicles, consumers are increasingly choosing them. It stated that due to the low entry barrier posed by imports, numerous brands and players have entered the market.

Redseer stated that charging infrastructure will be crucial in removing this barrier to further adoption. Even though range anxiety remains a concern for customers, the market will consolidate as the market matures and regulations tighten, favoring more integrated players.

According to the report, the rise of numerous brands in the E2W market is one of the primary drivers of growth. This has provided consumers with more options and encouraged better adoption across price points, among other benefits. It stated that as a result, E2W sales are rising across India, including in Tier 3 and Tier 4-plus cities.

The top three considerations for purchasing an electric vehicle are performance, running costs, and features, followed by environmental concerns. Aditya Agrawal, a partner at Redseer Strategy Consultants, stated that, in comparison to their Internal Combustion Engine (ICE) counterparts, E2W wins when it comes to running costs.

According to Agrawal, range anxiety is the most common barrier faced by consumers when making the switch to E2Ws, despite the obvious advantages. In addition, it stated that the E2W ecosystem must focus on the four A’s, adaptability, awareness, availability, and affordability, to achieve electrification of more than 80% by 2030.