As per MRFR analysis, the India Electric Two-Wheeler Market Size was estimated at 4.04 (USD Billion) in 2024.The India Electric Two-Wheeler Market Industry is expected to grow from 4.51(USD Billion) in 2025 to 15 (USD Billion) by 2035. The India Electric Two-Wheeler Market CAGR (growth rate) is expected to be around 11.55% during the forecast period (2025 - 2035).
Key India Electric Two-Wheeler Market Trends Highlighted
The India Electric Two-Wheeler Market is witnessing significant growth driven by several key market drivers. Increasing fuel prices and growing environmental concerns are motivating consumers to adopt electric vehicles. The Indian government's push for cleaner transportation through policies like the Faster Adoption and Manufacturing of Electric Vehicles has incentivized manufacturers and consumers alike. Additionally, the rising availability of charging infrastructure in urban areas is enhancing the appeal of electric two-wheelers.
Opportunities in this market segment are vast, with startups and established automotive companies exploring innovations in battery technology and vehicle design to meet diverse consumer needs.Investment in research and development is imperative, as it can lead to improved range and efficiency of electric two-wheelers, fostering higher adoption rates among consumers. Recent trends in India reveal a shift in consumer preferences towards sustainable mobility options. The pandemic has accentuated the need for personal mobility, which has favored the sales of electric two-wheelers as safe and efficient alternatives.
Moreover, the youth demographic is increasingly inclined to choose electric vehicles due to their technological features and cost savings over time. With a focus on indigenization, manufacturers are also looking to localize the supply chain to reduce costs and enhance competitive advantage.Government initiatives aimed at promoting green technologies further signal a positive outlook for this market. In summary, the combination of supportive regulations, evolving consumer preferences, and technological advancements positions the India Electric Two-Wheeler Market for continued growth and innovation, reflecting a broader transition towards sustainable transport solutions in the country.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India Electric Two-Wheeler Market Drivers
Government Initiatives and Subsidies
The Government of India has been actively promoting the adoption of electric vehicles, particularly electric two-wheelers, through various initiatives and subsidy programs. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme has revolutionized the market by offering incentives for electric vehicle purchases, thereby making them more affordable for consumers.
According to the official documents from the Ministry of Heavy Industries, during Phase II of the FAME scheme, the government allocated approximately 1,000 crore INR to boost electric mobility in the country.This financial support is set to drive the sales of electric two-wheelers in India, enabling consumers to transition from traditional fuel-based two-wheelers to electric alternatives. The initiatives by established organizations such as the Automotive Research Association of India (ARAI) and the Society of Indian Automobile Manufacturers (SIAM) further emphasize the Indian government's commitment to achieving its electric mobility targets, which aligns with the goal of reducing vehicular emissions significantly and enhancing urban air quality.
Rising Fuel Prices and Urban Congestion
The continual rise in petrol and diesel prices has made electric two-wheelers a financially viable alternative for many consumers in India. As fuel prices fluctuate, urban commuters are increasingly seeking cost-effective solutions for their transportation needs.
According to data from the Indian Oil Corporation, petrol prices surged by over 15% in the last two years, prompting commuters to reconsider their options. Electric two-wheelers, which can drastically reduce fuel costs, have seen heightened interest as they offer a way to circumvent escalating expenses.This trend is also seen in the growth of Hero Electric and Bajaj Auto which have been increasing their production to meet the growing demand in the market with the rising fuel prices and traffic congestion in urban cities.
Environmental Awareness and Support for Clean Mobility
There is a growing awareness among the Indian populace regarding environmental preservation and the adverse effects of pollution caused by traditional fuel vehicles. This shift towards sustainable practices is influencing consumer behavior, prompting individuals to consider electric two-wheelers as eco-friendly alternatives.
According to a survey conducted by the Ministry of Environment, Forest and Climate Change, around 71% of urban Indians express concern about air quality and are willing to switch to cleaner modes of transport.The initiatives led by various non-governmental organizations (NGOs) focusing on pollution reduction and promoting electric vehicles have further fueled this trend. As a result, the India Electric Two-Wheeler Market Industry is witnessing increased traction from environmentally conscious consumers as they align their purchasing decisions with their values, thus contributing to the growing market segment.
India Electric Two-Wheeler Market Segment Insights
Electric Two-Wheeler Market Type Insights
The India Electric Two-Wheeler Market is gradually evolving, showcasing a robust growth trajectory propelled by increasing awareness of sustainability and government initiatives aimed at promoting electric vehicles. In this dynamic market landscape, the Type segment comprises key categories such as Scooters, Motorcycles, Mopeds, and E-Bikes, each presenting unique characteristics and attracting diverse consumer preferences. Among these types, scooters hold a significant share, favored for their practicality and ease of use in urban commuting, making them a popular choice among daily riders.The increasing fuel prices and rising environmental concerns have further driven consumers towards electric scooters as a viable alternative.
On the other hand, motorcycles cater to a younger demographic looking for performance and adventure, leading to a growing interest in electric motorcycles that promise a combination of speed and sustainability. Mopeds, with their lightweight build and maneuverability, attract consumers seeking economical and efficient forms of transportation for short distances. Meanwhile, E-Bikes are carving a niche in the market, appealing to fitness enthusiasts and those looking for a hybrid solution for commuting and leisure biking.This diversity within the Type segment underscores the varied consumer needs and preferences, encouraging manufacturers to innovate and tailor their products accordingly. Collectively, these segments contribute to the evolving India Electric Two-Wheeler Market statistics, reflecting a significant shift towards greener mobility solutions.
The government's push for electric mobility through subsidies and incentives is further enhancing the attractiveness of these types, paving the way for more sustainable transportation options in the future. As urban infrastructure develops and charging networks expand, the potential for the India Electric Two-Wheeler Market is poised to grow, with each type offering promising opportunities for market participants.The competition among these categories fosters technological advancements and improvements in battery performance, contributing to an overall enhancement of the consumer experience in the electric two-wheeler ecosystem. With environmental regulations becoming stricter, the shift towards electric mobility is not just a trend but a necessary transformation that aligns with India's goal of reducing carbon emissions and promoting renewable energy sources.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Two-Wheeler Market Battery Type Insights
The India Electric Two-Wheeler Market demonstrates significant growth driven by various battery types, which play a crucial role in ensuring efficiency, range, and customer satisfaction. Lithium-Ion Batteries have become the preferred choice for many manufacturers due to their lightweight properties, higher energy density, and longevity, significantly enhancing performance in terms of range and charge cycles. Lead-acid batteries, despite being heavier and having lower efficiency, are still relevant for budget-friendly models and provide ample opportunities for rural penetration due to their lower initial cost.
Nickel-metal hydrogen batteries, while not as widely adopted as Lithium-Ion, cater to niche markets by offering a good balance between performance and cost. The competitive landscape is largely influenced by the rise in electric vehicle adoption in India, backed by government initiatives and environmental regulations. Each battery type presents distinct advantages and challenges, impacting the overall India Electric Two-Wheeler Market landscape, with advancements in battery technology driving market transformation. As manufacturers continuously explore more efficient and sustainable solutions, the dynamics of the market are constantly evolving, reflecting on the India Electric Two-Wheeler Market statistics and revenue potential.The strategic focus on different battery types indicates the industry's capacity for innovation and adaptation in meeting the diverse needs of consumers in this growing market.
Electric Two-Wheeler Market Voltage Capacity Insights
The Voltage Capacity segment of the India Electric Two-Wheeler Market plays a crucial role in defining the performance, efficiency, and usability of electric two-wheelers. This market is broadly categorized into three key ranges: Below 48V, 48V to 72V, and Above 72V. The Below 48V segment is generally known for catering to low-speed vehicles and entry-level models, appealing primarily to urban commuters seeking economical solutions for short-distance travel.
The 48V to 72V segment stands out due to its versatility, offering a balance between performance and range, which aligns with the growing consumer demand for efficient electric two-wheelers that can handle daily commutes along with occasional longer trips. It is significantly contributing to the overall market growth as it meets the legislative push for cleaner transportation and urban mobility.
On the other hand, the Above 72V segment is gaining traction due to the increasing preference for high-performance models that provide extended range and speed, making them suitable for varied applications including logistics and delivery services, which are particularly relevant in India's bustling urban environments. The developmental focus on battery technology improvements and charging infrastructure over the coming years is expected to stir further innovations within each of these segments, supported by a favorable regulatory framework from the Indian government aimed at promoting electric mobility. These dynamics indicate that the Voltage Capacity segment will remain a focal point for growth and innovation in the India Electric Two-Wheeler Market.
Electric Two-Wheeler MarketUse Insights
The India Electric Two-Wheeler Market exhibits significant momentum in its Endse segment, primarily driven by the rising demand for sustainable transportation solutions. Personal Transportation holds considerable importance as the urban populace increasingly seeks eco-friendly commuting options to alleviate traffic congestion and reduce emissions. Concurrently, the Commercial Delivery segment is experiencing robust growth, fueled by the surge in e-commerce, requiring efficient logistics and last-mile delivery services.
This has prompted businesses to invest in electric two-wheelers as a cost-effective and environmentally conscious choice, reflecting a substantial shift in operational strategies.Furthermore, Shared Mobility has emerged as a pivotal factor in transforming urban mobility, with ride-sharing platforms embracing electric two-wheelers to enhance fleet sustainability, cater to changing consumer preferences, and align with government policies promoting electric vehicle adoption. Overall, the developments in these areas collectively underscore the evolving landscape of the India Electric Two-Wheeler Market, emphasizing a transition towards cleaner and more efficient transportation alternatives.
India Electric Two-Wheeler Market Key Players and Competitive Insights
The India Electric Two-Wheeler Market has witnessed significant growth in recent years, driven by increasing environmental concerns, government initiatives promoting electric mobility, and the rising popularity of two-wheelers due to their affordability and efficiency. The competitive landscape is characterized by a mix of established players and new entrants, all vying for market share in a sector that is rapidly evolving.
As consumers become more conscious about reducing their carbon footprints, manufacturers are investing in advanced technologies and innovative designs to appeal to this demographic. The market is expected to experience substantial changes as large automotive companies pivot to electric vehicle (EV) production and startup firms continue to disrupt traditional business models, leading to a dynamic competitive environment.Yulu has carved a niche for itself within the India Electric Two-Wheeler Market through its focus on sustainable urban transportation solutions. With a strong emphasis on smart mobility, Yulu presents a fleet of electric two-wheelers designed for shared mobility, catering specifically to the needs of urban commuters.
The company has effectively leveraged technology to establish a robust platform that facilitates the convenient rental of electric bikes, which appeals to a younger, eco-conscious demographic. Yulu's strategic partnerships with various municipalities and organizations embody its commitment to fostering electric mobility while ensuring presence in a growing number of cities across India. This local engagement underlines Yulu's strength in adapting to regional market dynamics, which has positioned it as a leader in last-mile connectivity solutions.EVeium, established as a formidable player in the India Electric Two-Wheeler Market, focuses on providing a wide array of affordable electric scooters and bikes designed for both personal and commercial use.
The company aims to enhance the electric mobility landscape in India by providing efficient, high-performance vehicles that align with consumers' shifting preferences towards sustainability. EVeium's strength lies in its innovative battery technology, which offers extended range and superior performance. Its market presence is bolstered through strategic partnerships and collaborations that allow for a wider distribution network across the nation. The company has also engaged in mergers and acquisitions to enhance its technological capabilities and expand its product offerings in the EV sector, solidifying its position in the competitive landscape of electric two-wheelers in India.
Key Companies in the India Electric Two-Wheeler Market Include:
India Electric Two-Wheeler Market Industry Developments
The India Electric Two-Wheeler Market has witnessed significant developments in recent months. Notably, Yulu has expanded its operations and introduced a new line of electric bikes aimed at urban commuters, showcasing ongoing innovation within the sector. In August 2023, Hero Electric reported a marked increase in sales, benefiting from improved infrastructure and a growing consumer preference for sustainable transportation.
Ampere Vehicles continues to gain traction, focusing on product enhancements and expanding its dealer network to support sales growth. Furthermore, in September 2023, Ather Energy secured additional investments to bolster its Research and Development activities for smart electric scooters, aiming to enhance connectivity features. The market is also experiencing a surge in competition, with companies such as Revolt Motors and Okinawa Autotech striving to capture market share through aggressive marketing strategies.
Notably, iAugust 2023, TVS Motor Company unveiled plans to elevate its electric two-wheeler segment, indicating a shift in focus towards sustainable mobility. Overall, the Indian Electric Two-Wheeler Market is thriving, buoyed by consumer demand, innovative products, and a favorable regulatory environment fostering sustainable transportation solutions.
India Electric Two-Wheeler Market Segmentation Insights
Electric Two-Wheeler Market Type Outlook
Electric Two-Wheeler Market Battery Type Outlook
Electric Two-Wheeler Market Voltage Capacity Outlook
Electric Two-Wheeler Market End Use Outlook
Personal Transportation
Commercial Delivery
Shared Mobility
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 4.04(USD Billion) |
| MARKET SIZE 2024 | 4.51(USD Billion) |
| MARKET SIZE 2035 | 15.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 11.55% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Yulu, EVeium, HERO Electric Vehicles, Hero Electric, Niu Technologies, Ampere Vehicles, Simple Energy, Revolt Motors, Okinawa Autotech, Mahindra Electric, Ultraviolette Automotive, Ather Energy, Bajaj Auto, TVS Motor Company |
| SEGMENTS COVERED | Type, Battery Type, Voltage Capacity, End Use |
| KEY MARKET OPPORTUNITIES | Government incentives for EVs, Expanding charging infrastructure, Rising fuel prices driving demand, Growing environmental awareness, Increasing urbanization and congestion |
| KEY MARKET DYNAMICS | Government incentives and subsidies, Rising fuel prices, Urbanization and congestion, Environmental awareness, Advancements in battery technology |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Electric Two-Wheeler Market is expected to be valued at 4.51 USD Billion in 2024.
By 2035, the market is projected to reach a valuation of 15.0 USD Billion.
The market is expected to grow at a CAGR of 11.55% during the period from 2025 to 2035.
The scooters segment is anticipated to dominate the market, projected to increase to 6.0 USD Billion by 2035.
Major players include Yulu, HERO Electric Vehicles, Ather Energy, and Bajaj Auto among others.
The motorcycle segment is expected to reach a valuation of 4.5 USD Billion by 2035.
Increased urbanization and demand for eco-friendly transport solutions are key growth drivers.
Challenges include battery technology limitations and infrastructure development for charging stations.
The e-bike segment is expected to grow to a valuation of 2.0 USD Billion by 2035.
The moped segment is projected to increase to 2.5 USD Billion, showcasing significant recovery and growth.
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