In a market that once used to be dominated by legacy two-wheeler companies, home-grown electric two-wheeler start-up Ather Energy became a unicorn last year, a move that re-shaped India’s electric vehicle (EV) landscape.
The growth seen in the electric two-wheeler category last year testifies that it’s no longer a niche segment, but a battleground for both start-ups and legacy players alike. The recently concluded Bharat Mobility Global Expo showcased this shift, proving that electric scooters are leading India’s EV transformation.
According to data from road and transport ministry’s Vahan portal, India’s EV sales in CY24 stood at 1.95 million units compared to 1.53 million units in 2023. Of this, the electric two-wheeler sales stood at 1.15 million units in CY24, a 33% year-on-year growth from 860,418 units in CY23.
Growth in electric two-wheeler sales was driven by a policy push towards charging as well as an improved consumer sentiment. Multiple players entered the segment by launching products at affordable prices. Discounting by some electric two-wheeler players, such as Ola Electric and Ather Energy, as well as expansion by two-wheeler manufacturers in Tier II and Tier III cities, further provided a boost to electric two-wheeler sales.
In CY24, EV maker Ola Electric dominated the electric two-wheeler market with 35% market share, followed by TVS Motor Company, which cornered a market share of 19%. Bajaj Auto, with its Chetak offering, cornered a market share of 17%, whereas Hero MotoCorp-backed Ather Energy cornered a market share of 11%. In CY23, Ola’s market share stood at 31.1%, followed by TVS Motor Company at 19% market share. Bajaj Auto’s market share stood at 8.3%, whereas Ather Energy’s market share stood at 12.2%.
In the pipeline
As competition intensifies, companies are going the extra mile to woo consumers. Ola has expanded its store count from 800 to 3,200. OPG Mobility (formerly Okaya EV) plans to expand its electric two-wheeler business by adding 600 service partners. EV startup Simple Energy aims to set up 150 stores and 200 service centres by year-end.
New entrants in the segment are also wooing consumers. Japanese automaker Suzuki Motor Corporation unveiled its first electric scooter, e-Access, at the Bharat Mobility Global Expo. “The main value proposition of the product is something that is of high concern. Our market research shows that the highest concern areas for EVs have been safety and battery life. So besides significantly superior product life and significantly superior safety standards, the product will continue to offer the very popular ride experience like that of Access ICE,” Devashish Handa, Executive Vice President of sales and marketing at Suzuki Motorcycle India, says.
Greaves Electric Mobility, a subsidiary of Greaves Cotton, showcased a slew of products in the electric scooter segment, including the Xpress, a business-to-business-orientated e-scooter, and two new variants-the Exec and S Turismo—of its existing Ampere Nexus scooter. Being an earlier entrant to the electric two-wheeler market, the company already has six e-scooter models-the Nexus, Primus, Magnus LT/EX (1100 km+ range), Ampere Magnus Special, entry-level Rio Li/La Plus, and Zeal EX-in its portfolio.
“With the market expanding and awareness improving, market penetration is getting better… And we are going to focus on our design, engineering, supply chain, manufacturing, and our entire automotive ecosystem that we bring in with Greaves retail and Greaves finance, and that’s kind of what we are focusing on,” says Nagesh Basavanhalli, Non-Executive Chairman, Greaves Cotton Limited.
Legacy player Bajaj Auto sold 1,93,493 units of Chetak in CY24, compared to 71,941 units in CY23. Notably, the company’s electric vehicle business has become profitable now. According to Dinesh Thapar, Chief Financial Officer, Bajaj Auto, the company’s intention is to grow its electric vehicle portfolio. “It is our intention to continue to grow our competitive position at scale for this business…I think we are strongly committed to investing behind growing both scale and competitiveness of the electric portfolio,” says Thapar.
Beyond the cities
According to a report by Bloomberg NEF, an analysis of electric two-wheeler and passenger vehicle sales across 207 cities in 10 Indian states (Delhi, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh) reveals a significant uptick in electric two-wheeler sales in some tier-2 cities. Moreover, electric two-wheeler sales in some Tier II cities such as Surat and Jaipur surpassed that of metropolitan sales.
Despite the increase in sales, the segment is yet to reach the tipping point, as per analysts. According to Rajat Mahajan, Partner, Deloitte India, the electric scooter market is close to a key moment where it could see rapid growth or widespread acceptance."Everybody is now very seriously looking at battery electric vehicles in two-wheelers to be the future," notes Mahajan.
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