Foray into electric 2 wheeler segment in India

Abstract

The World Air Quality Index Report 2020, prepared by the Swiss Organization IQAir, mentions that India is 22 of the top 30 most polluted cities globally. Given that one-third of the pollution is caused by vehicles, there is a need to shift from conventional vehicles to electric vehicles in India to combat the pollution levels. Due to rising pollution, fuel prices, and increasing financial incentives from the Governmen electric scooters and motorcycles are booming in India. The Electric scooter and motorcycle market is expected to grow at a CAGR of 57.9% between 2020 and 2025 and reach a sales volume of 1080.5 thousand by the end of 2025. For FY21, the electric two-wheeler (E2W) recorded a sale of 1,43,837 units compared to 1,52,000 units in FY20, which is a decline of 6% and can be traced to the COVID-19 pandemic. The major players in the E2W market are Ather Energy, Hero electric, Okinawa, TVS, Ampere vehicles, Bajaj, among others. Hero Electric is leading in the E2W segment with a market share of 30.3%, followed by Okinawa, which has 20.5%. Ather, though has a stronger hold in the market, has a market segment of 11.2%. The EV industry is evolving in India, and many incumbents are entering this market and some new players who have never been in this market. The EV industry is at a very nascent stage in India, but the industry is ready to take-off with the various incentives given by the Government to the OEMs and the buyer of the vehicle.