$1.

6 BILLION

APRIL 2024
 ReadOn Insights

Contents

1. Executive Summary 3

2. Global EV 2-Wheeler Market: An Overview 4

3. India's EV 2-Wheeler Industry: Overview 5

4. Charging Infrastructure in India 7

5. Growth Drivers of EV 2-Wheelers

ts in India 8
h

s
g

t
si

h
In

ig
6. Benefits of EV 2-Wheelers
On 13

s
ad

In
Re
7.

adOnE2W vs Internal Combustion Engine (ICE)

2-Wheeler
14

Re
8. Indian Consumers’ Vehicle Shopping
Preferences
16

9. Indian EV 2W Brands - Competitive 18

Landscape and Key Players

10. Startups Charging Up the E2W Space in India 23

11. Key Challenges in the EV 2-Wheeler Industry 26

12. Whitespace Opportunities for New Players to 28

Enter the EV 2-Wheeler Industry

13. Conclusion 29
 ReadOn Insights

Executive Summary

Today, we’re diving deep into the $1.6 Billion electric two-
wheeler industry in India. This industry is growing at a
staggering 40.34% CAGR and is set to grow to $12.44 Billion
by 2031!

As we shift gears towards more sustainable and cleaner

transportation, electric two-wheelers are leading the
charge. The buzz around these eco-friendly two-wheelers
is fueled by supportive government policies, increasing
environmental consciousness, and the advancements in

sights
battery technology that make EVs more accessible and
efficient compared to traditional vehicles.

On In
Major brands like Ola Electric, Ather Energy and Bajaj Auto

Read
are accelerating innovation, introducing models with
smarter features and longer battery lives. And why just big
brands? New age startups are stepping up with their
innovative tech solutions.

Yet, the road ahead isn't without bumps - challenges in

charging infrastructure and technology remain.

Let’s explore how this industry is transforming urban

mobility and what it means for the future of travel on two
wheels!

3
 ReadOn Insights

Global EV 2-Wheeler Market: An Overview

Global EV 2 wheeler market size:

CAGR: 11.5%

$ 39.9 Bn $ 109.5 Bn
2023 2032

sights
n
Top players in the global EV 2-wheeler market:

dOn I
a
The top companies occupy 17.10% market share in the global EV

Re
2-Wheeler market:

Segmentation of EV 2-wheelers:

Based on Usage Based on Battery Based on Motor

Personal use Lithium-ion Placement
Commercial use: For Sealed Lead Acid (SLA)
passenger (bike Frame-mounted motor
taxi/rental) & goods Hub- motor
transportation (parcel
delivery, food & grocery
delivery)

Sources: Mordor intelligence, IMARC Group

4
 ReadOn Insights

India's EV 2-Wheeler Industry: Overview

India is one of the world's fastest-growing markets for Electric

Two-Wheelers (E2Ws). The two-wheeler segment accounts for
more than 70% of all registered vehicles in India. The E2W
penetration is rising, with registered sales of 86,067 units in
March 2023 against 49,591 units in March 2022.

India’s EV 2-wheeler Market Size:

s ig h ts CAGR: 40.34%

$ 1.6 billion n In
e a d O $ 12.44 billion

R
FY2024 FY2031

Increase in sales of EV 2-wheeler in India:

1000000 9,44,126

800000 7,28,054

600000

400000
2,52,641
200000

0
FY22 FY23 FY24

Sources: MarketsandData, India Brand Equity Foundation (IBEF), Society of Manufacturers of Electric Vehicles (SMEV), Mordor
Intelligence, Statista, Vahan Portal, E2W Sales Data as on April 2, 2024

5
 ReadOn Insights

India's EV 2-Wheeler Industry: Overview

India is on track to become the largest EV market by 2030, with

a total investment opportunity of more than US$ 200 billion
over the next 8-10 years. According to a study, electric two-
wheelers may account for 80% of total EV sales by 2030.

Top Players in the EV 2-Wheelers Market:

Others
Ola Electric has a lion’s 14.00%

s
share of the market, with

t
Okinawa

h
Ola Electric

g
2.00%
50,545 units sold in

i
35.00%

s
Ampere

In
March 2024. 6.00%

adOn
Re
Bajaj Auto
TVS Motors comes 11.00%
second on the chart, with
26,479 units sold in March
2024. Ather Energy
TVS Motors
12.00%
19.00%

Exports of EV 2-Wheelers:
E2W exports are expected to surpass $28-30Mn by 2030 at a
CAGR of 10-12%.
E2W Exports from India ($Mn):
30
30

25
21.2
20.2
20 17.6 17.4
15.1
15 13.5

10

0
2017 2018 2019 2020 2021 2022 2030F

Sources: India Brand Equity Foundation (IBEF), Society of Manufacturers of Electric Vehicles (SMEV), Vahan Portal, E2W Sales Data as on
April 2, 2024, Redseer Strategy Consultants
6
 ReadOn Insights

Charging Infrastructure in India

The charging infrastructure for electric 2-wheelers in India is a
critical component in the widespread adoption of electric vehicles.
While the government has taken initiatives to expand charging
networks, we still have a long way to go.

12,146 Public EV charging stations are operational

across the country (as per Ministry of Power)

s
Charging Infrastructure Type Description

sight
n
Dedicated charging for personal EV or EV

I
fleet owners located at independent

n
Private Charging

O
homes and dedicated parking spots in

ad
apartments/offices etc

Re
Shared charging for EV users located at
apartment complexes, office campuses,
Semi-Public Charging gated communities, shopping malls,
hospitals, universities, and government
buildings

Open for all EV users, located at public

parking lots, on-street parking, charging
Public Charging
plazas, petrol pumps, highways, and metro
stations.

Top 5 EV Charging Station Companies In India:

Sources: Economic Times, India Brand Equity Foundation (IBEF)

7
 ReadOn Insights

Growth Drivers of EV 2-Wheelers in India

Rising Disposable Income
Increasing disposable income among the middle-class segment
is a growth driver for the EV 2W segment.

Per Capita Consumer Spending in India (in $):

1400
1282

1200 1162 1168

1115
1053 1081
1003
1000 938
880
837
790
800 759

600

hts
400

sig
200

In
0

n
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

adO
Re
Increase in Urbanisation
As more people shift from rural areas to urban areas for work and
better living standards, there has been an increase in challenges
associated with urban commuting (high traffic congestion and
pollution). EVs offer a convenient and eco-friendly alternative.

Degree of urbanisation in India (%)

40.00%
35.39% 35.87%
34.47% 34.93%
33.18% 33.60% 34.03%
32.38% 32.78%
31.28% 31.63% 32.00%

30.00%

20.00%

10.00%

0.00%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Sources: Macrotrends - India Consumer Spending 1960-2023, Statista, World Bank

8
 ReadOn Insights

Growth Drivers of EV 2-wheelers in India

Better Financing Options
Due to the rising demand of EV 2-wheelers, banks and
NBFCs are offering easy financing options. Ola Electric,
Ather Energy and Hero Electric have partnered with
banks to offer affordable finance options to customers.

Rising Environmental Concerns

Increasing awareness about environmental degradation and

ts
the need for sustainable transportation solutions has led to a

sigh
growing demand for electric vehicles. EVs produce fewer

In
emissions compared to traditional internal combustion engine

On
(ICE) vehicles, making them an attractive option for

ad
Re
environmentally conscious consumers.

India’s Green Goals

India’s green goals, aimed at reducing pollution and promoting
sustainable development, are playing a pivotal role in driving
the growth of the electric 2-wheeler market in the country.

At the COP26 Summit in 2021, Prime Minister Mr. Narendra Modi

declared that India would cut its anticipated carbon emissions
by one billion tonnes until 2030. To achieve this goal, we are
moving towards the electric revolution.

Sources: India Brand Equity Foundation (IBEF), CXO Today, Moneycontrol

9
 ReadOn Insights

Growth Drivers of EV 2-wheelers in India

Rising Fuel Prices
Fluctuating fuel prices, combined with the volatility in global oil
markets, have made conventional fuel-powered vehicles less
economical to operate. Electric 2-wheelers, on the other hand,
offer lower running costs than petrol or diesel vehicles.

Reducing Battery Costs

The cost of lithium-ion batteries, which are crucial components

ts
of electric vehicles, has been steadily decreasing in recent

Insigh
years due to growth in production capacity across all parts of
the battery value chain, from raw materials and components

On
to battery cells and packs.

ad
Re
According to BloombergNEF’s annual lithium-ion battery price
survey, average pack prices fell from $161/kWh in 2022 to
$139/kWh in 2023. Battery pack prices are further expected to
fall below $100/kWh in 2027. This reduction in battery costs has
made EVs more affordable for consumers, leading to greater
adoption of electric 2-wheelers.

Technological Advancements in EV 2-Wheelers

Advancements in battery technology have improved the
performance and range of electric 2-wheelers by providing longer
battery life and faster charging times. Result? Lesser consumer
anxiety and higher adoption of EVs.

Sources: Economic Times, India Brand Equity Foundation (IBEF), Bloomberg

10
 ReadOn Insights

Growth Drivers of EV 2-Wheelers in India

Government Initiatives
The government of India has introduced several initiatives to drive
the growth of EV 2-wheelers market in the country. These initiatives
aim to address various challenges such as high upfront costs,
limited infrastructure, and consumer awareness:

Faster Adoption and Manufacturing of (Hybrid &) Electric

Vehicles (FAME) Initiative
With a budget of Rs. 10,000 crore, this initiative supports
electrification of public & shared transportation, and incentivises

ts
buyers to reduce their cost of purchasing vehicles. It also granted

Insigh
Rs. 1,000 crore incentives for the development of EV charging
stations under the FAME II scheme. 2,877 public charging stations

On
have been installed in 68 cities across India. Private players have

ad
also added 3,000 charging stations under this initiative.

Re
Electric Mobility Promotion Scheme (EMPS) 2024
Launched by the Ministry of Heavy Industries (MHI), EMPS 2024 came
into effect on 1st April 2024 with an outlay of Rs. 500 Crore to provide
subsidies for approximately 3.72 lakh electric two wheelers. It also
provides incentives of Rs. 10,000 on every electric two wheeler
(provided they have advanced batteries).

Production Linked Incentive Scheme (PLI)

This intends to improve exports and generate economies of scale,
helping big domestic and international manufacturers develop
competitive ACC battery production in India. The government
invested $2.5 Billion to establish local manufacturing capacity of 50
GWh of Advanced Chemistry Cells (ACC).

Sources: Economic Times, India Brand Equity Foundation (IBEF)

11
 ReadOn Insights

Growth Drivers of EV 2-Wheelers in India

Government Initiatives

Battery Waste Management Rules

The Ministry of Environment, Forest, and Climate Change published
the Battery waste Management Rules in 2022 to ensure that battery
waste is handled in an environmentally responsible manner.
The regulations stimulate the establishment of new firms and
entrepreneurship in the collection, recycling, and repair of spent
batteries. By demanding a minimum degree of material recovery
from used batteries in the recommendations, new technologies,

ts
investments, and business opportunities will be brought to the

igh
recycling and refurbishment sector.

Ins
adOn
Battery Swapping Policy (Draft)

Re
Launched by the Ministry of Heavy Industries (MHI), EMPS 2024 came
into effect on 1st April 2024 with an outlay of Rs. 500 Crore to provide
subsidies for approximately 3.72 lakh electric two wheelers. It also
provides incentives of Rs. 10,000 on every electric two wheeler
(provided they have advanced batteries).

GST and Other Taxes

The government has reduced GST on EVs from 12% to 5%. GST on
chargers/ charging stations for EVs has also been reduced from 18%
to 5%. The Ministry of Road Transport & Highways (MoRTH) announced
that the battery-operated vehicles will be given green license plates
and be exempted from permit requirements. MoRTH also advised
states to waive road tax on EVs, which in turn will help reduce the
initial cost of the EVs.

Sources: Economic Times, India Brand Equity Foundation (IBEF), Government Fame India Scheme Press Release

12
 ReadOn Insights

Benefits of EV 2-Wheelers

Reduced dependence on fossil fuels

The availability of fossil fuels is limited, and their use is
destroying our planet. EVs can convert around 60% of
the electrical energy from the grid to power the wheels,
but petrol or diesel cars can only convert 17%-21% of the
energy stored in the fuel to the wheels.

Zero Tailpipe Emissions

ts
Fully electric vehicles have zero tailpipe emissions

Insigh (emissions of gaseous pollutants), but on average,

petrol or diesel vehicles emit almost 3 times more

adOn carbon dioxide than the average EV.

Re Lower Operating Costs

Electric 2-wheelers have lower operating costs
compared to petrol or diesel vehicles as they use
electricity to charge their batteries instead of fossil
fuels. The electricity cost can be reduced further if
charging is done with the help of renewable energy
sources installed at home, such as solar panels.

Reduced Noise Pollution

Electric motors are quieter than internal combustion
engines, resulting in reduced noise pollution. In fact,
electric vehicles are so silent that manufacturers have
to add false sounds to make them safe for
pedestrians.

Source: Niti Aayog, Government of India

13
 ReadOn Insights

E2W vs Internal Combustion Engine (ICE) 2-Wheeler

Zero Tailpipe Emissions
Parameters / Type
Electric 2-Wheeler ICE 2-Wheeler
of 2-Wheeler

Top Speed 85 KM/Hrs 115 KM/Hrs

Average Purchase
Rs. 1,24,000 Rs. 1,25,000
price of the vehicle (Rs.)

Life of the Vehicle [As 2 Lakh KM / 12-15

s
3 Lakh KM / 15 Years

t
stated by OEMs] years

Insigh
n
Fuel Efficiency 150 km/litre 40 km/full charging

adO
Re
Cost of Petrol /
Rs. 94/litre (petrol) Rs. 104 (full charging)
Electricity

Total Run Per year 11,520 km 11,520 km

Total Cost of Fuel /

Rs. 3,226 Rs. 29,952
Electricity per year

Average Service
2 times 3 times
frequency in a year

Annual maintenance +
Rs. 1,800 Rs. 5,500
repair cost

Source: Alliance for an Energy Efficient Economy (AEEE), India Brand Equity Foundation (IBEF)

14
 ReadOn Insights

E2W vs Internal Combustion Engine (ICE) 2-Wheeler

Zero Tailpipe Emissions
Parameters / Type
Electric 2-Wheeler ICE 2-Wheeler
of 2-Wheeler

Yearly Cost (Cost of

fuel/electricity +
Maintenance / Repair
Rs. 5,026 Rs. 35,452
Cost)

Average Battery
replacement cost
Rs. 50,000 NA

sights
RTO Cost NA Rs. 2,000

n In
Tire cost (Average

O
d
replacement after 15K –

Rea
20K Kms + or 4 to 5 Rs. 3,300 Rs. 4,500
years) - 3 times change
the tire in 8 years

Pollution under Control

(PUC) Charge
- Rs. 480 (60/yr)

Total 8 Years cost

(Battery cost +
Maintenance +
Electricity/Fuel cost +
Rs. 2,17,508 Rs. 4,15,596
Vehicle + Vehicle cost +
Tire + RTO + PUC)

Total 8 Years cost of

operation
Rs. 2.36 per km Rs. 4.5 per km

Source: Alliance for an Energy Efficient Economy (AEEE), India Brand Equity Foundation (IBEF)

15
 ReadOn Insights

Indian Consumers’ Vehicle Shopping Preferences

McKinsey conducted* an online India Mobility Consumer Survey

of ~1,200 Indian electric-vehicle (EV) consumers to understand
the importance of product preferences, channel preferences,
ownership models, and affinity for premium features. Here’s
what they found:

Buying process: Most customers are not happy with the

vehicle shopping experience.

71% 74% <2%

customers think that the customers want a customers find the
process is too complex haggle-free experience current process ideal

Financing: Ownership Preference are shifting, creating

opportunities for flexible access to two wheeler in the form of
leasing, subscription and pay-per-use.

78% 63% 37%

customers go for customers would go for customers will prefer
outright purchase now outright purchase in 10 flexible purchase access
years in 10 years

New vs old brands: Consumers don’t mind new players in the

EV2W space. While 90% of the traditional two-wheeler market is
dominated by incumbents, more than 50% of the EV2W market
comprises of new players.

Source: McKinsey online India Mobility Consumer Survey

Survey conducted in December 2022

16
 ReadOn Insights

Porter's Five Forces Analysis

The level of competition

The level of competition

medium as the industry

medium as the industry

medium as the industry

among electric vehicle
from the government.

from the government.

from the government.

has received support

has received support

has received support

competition among
amongThe level of

manufacturers is

manufacturers is

manufacturers is
The level of competition among electric

electric vehicle
electric vehicle
Competition vehicle manufacturers is high as every
in the sector
Sector player is making heavy capex to capture a
HIGH
larger share of the industry.

Scale
Scale and
and in-house
in-house production
production of
of batteries
batteries
are very important to reduce the total
are highly important to reduce the total
Bargaining production
production cost
cost and
and make EVsan
affordable.
to make attractive
HIGH

s
Bargaining
Power of
MEDIUM

t
Currently, the EV sector is dependent on
offering. Currently, the EV sector is almost

h
power of
Sellers

g
imported battery cells, so foreignbattery
suppliers

i
Sellers entirely dependent on imported

s
enjoy
cells. more bargaining power.

On In
Read
Bargaining
Power of
Buyers
The bargaining power of buyers is high due
to the availability of substitutes, and
inadequate charging infrastructure for
electric 2-wheelers.
HIGH

Though this space requires large capital

Threat of
investment, government initiatives and
New
improved manufacturing processes are MODERATE
Entrants
encouraging more players to enter the market.

Due to rising fuel prices, cost-conscious

consumers are shifting to EVs or other
Threat of
Substitutes
eco-friendly vehicles like hydrogen fueled MODERATE
vehicles. But there are other cheaper
substitutes like public transport.

17
 ReadOn Insights

Indian EV 2W Brands - Competitive Landscape

Brands/ Ola TVS Bajaj Ather Hero

Parameters Electric Motor Auto Energy Motocorp

Founding
2017 1978 1945 2013 1984
Year

Market
35% 19% 11% 12% 2%

ts
Share

Insigh
Range 170 Km 145 Km 90 Km 110 Km 90 Km

adOn
Charging 4-5

Re
6 hours 4 hours 4-5 hours 5 hours
Time hours

Strong Established
High Innovative
brand brand, Strong
range, technology
legacy, strong brand,
Strengths affordable, , high
extensive distribution extensive
high brand brand
service network, network
presence presence
network affordable

Higher
Production New
Limited price point Low market
issues, entrant in
scope for compared share due to
Weaknesses quality EV space,
margin to mass intense
control unproven
expansion market competition
concerns technology
options

Source: Electric India Today, Ola Electric’s website, TVS Motors’ website, Bajaj Auto’s website, Ather Energy’s website

18
 ReadOn Insights

Key Players in EV 2-Wheeler Industry in India

Key Models

S1 Pro S1 Air S1 X
Key Metrics

sigh
35%
ts 432 Cr km 3,26,443

In
Market share Distance travelled Units sold in FY23-24

adOn
Rs. 1,242 Cr 12.5 Cr kg Rs. 1,012 Cr

Re
Q1 FY24 Revenue Emissions avoided Savings in fuel cost

Business Details

Ola Electric has the largest integrated and automated E2W

manufacturing plant in India, spread across 400+ acres in
Krishanagiri, Tamil Nadu.
It operates R&D facilities across India, UK and US including
the Battery Innovation Centre, where it is developing cell
and battery technology.
It has 935 experience centres and 414 service centres
across India
It has filed for an IPO, and aims to raise Rs. 5,500 Crore
through fresh issue of shares and an offer for sale (OFS) of
9.5 Crore shares

Source: Ola Electric’s website, Key metrics’ data is as on 31st December, 2023
19
 ReadOn Insights

Key Players in EV 2-Wheeler Industry in India

Key Models

TVS X TVS iQube

s
Key Metrics

sight
n
19% 130+ 1,82,959

dOn I
Market share Cities Units sold in FY23-24

Rea Business Details

TVS Motor’s eco-friendly scooter, which bagged the ‘Green

Two-Wheeler of the Year’ title at the Autocar Awards 2023, is
currently available in three variants (iQube, iQube S and
iQube ST).
It has launched the TVS iQube mobile app for iQube
owners, to get access to over 2,000 charging points with
various charging partners.
It acquired 70% stake in EBCO Limited, UK, dedicated for
producing and distributing electric bikes designed for the
British e-bike market in 2022

Source: TVS Motor’s website, TVS Motor Annual Report FY22-23

20
 ReadOn Insights

Key Players in EV 2-Wheeler Industry in India

Key Models

Ather Rizta Ather 450X Ather 450S Ather 450 Apex

Key Metrics

sig
12%
hts 138+ 1,08,872

In
Market share Cities Units sold in FY23-24

adOn
Rs. 1,784 Cr 2,500+ 4.2 lakh

Re
Revenue in FY 22-23 Chargers in 200+ cities Installed production
capacity of vehicles

Business Details

Ather’s emission-free journeys saved a whopping 70 million

kg of CO2. That’s equivalent to planting 3.5 million trees.
60,000+ scooters rode 100+ km in a day.
Ather Energy’s early investor Hero MotoCorp increased its
stake in the company to 39.7% in January 2024.
While it will refrain from going into deep rural areas, Ather
Energy is confident that its upcoming products will
strengthen its potential in Tier-2, Tier-3, and Tier-4 markets.

Source: Ather Energy’s website

21
 ReadOn Insights

Key Players in EV 2-Wheeler Industry in India

Key Models

Chetak Urbane Chetak Premium

ts
Key Metrics

Insig
11%
h 120+ 1,06,990

On
Market share Cities Units sold in FY23-24

Read
600 Mn km
Fleet’s total distance
14 Mn kgs
CO2 Emissions reduction
100k+
Vehicles on road

Business Details

Bajaj has developed a low-speed 2-wheeler for Yulu-

where the company has a 19% stake.
Yulu has launched 2 of these new e-bike variants in India,
namely Miracle GR a personal-use vehicle, and Dex GR a
last-mile delivery vehicle.
It collaborated with IIT Madras to upskill employees in EEE-
related skills including software and launched a 6-month
certification course on E-mobility and Electric Vehicle
Engineering.

Source: Bajaj Auto’s website, Bajaj Auto Annual Report FY22-23

22
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Startups Charging Up the E2W Space in India

Exponent Energy
Full stack energy company that solves the two
seemingly major problems of EVs: charge time
and battery life. It claims to rapidly charge your
EV from 0 to 100% within 15 minutes. It has
successfully completed 25,000+ charging
sessions, powering over 1,000,000+ kms.

Bounce

sights Bounce Infinity offers E2Ws that come with a

‘battery as a service’ option for customers. This is

On In India’s first e-scooter that doesn’t necessarily

d
come with batteries (customers can swap

Rea batteries at nearby stations)

Hopcharge
Offers on-demand, doorstep EV charging
solutions. Its proprietary energy pod has lithium
ion-based energy storage with a rapid charger,
which charges EVs at the same speed as a
public fast charger. The technology is patented
in India and the United States.

Charge-Up
Battery swapping company, offering Battery as a
Service (BaaS).

Source: Exponent Energy’s website, Bounce’s website, Hopcharge’s website

23
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Startups Charging Up the E2W Space in India

GPS Renewables
A full stack clean fuels technology & engineering
company. It established a biogas powered EV
charging station at Mumbai. The station uses
power generated from an electricity generator
that uses biogas. The organic waste used to
generate biogas is collected from nearby hotels
and restaurants. This station takes up to 45
minutes to charge a car to 100%

sights SWYTCHD

On In Offers EVs on a monthly subscription (starting

ad
from Rs. 4,500) in Bengaluru. Once chosen, they

Re
deliver the vehicle to your doorstep. It also
provides insurance, service, maintenance,
charging refunds, and breakdown support.

Log9 Materials
An advanced battery technology and deep-tech
startup that has established India’s first Lithium-
ion Cell Manufacturing Facility in Bengaluru. Since
the cells and batteries are made in India, they are
best suited for Indian operating conditions,
climate, and customers. Its RapidX 2000 batteries
allow for rapid charging from 0-80% within 12
minutes.

Source: The Better India, GPS Renewables’ website, SWYTCHD’s website, Log9 Materials’ website

24
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Alternatives to EV-2 vehicles

Internal Combustion Engine (ICE) Vehicles

Petrol and diesel powered scooters and bikes are a
popular choice due to their widespread availability and
established infrastructure.

Hydrogen Electric Vehicles (HEVs)

They use hydrogen gas to generate electricity,
producing only water vapor as a byproduct. Bajaj Auto
is exploring the possibilities of HEVs under its subsidiary,

hts
Chetak Technologies Limited (CTL).

sig
On In
Petrol Hybrid 2-Wheelers

ad
Hybrid 2-wheelers combine a conventional petrol

Re
engine with an electric motor and battery. They offer
improved fuel efficiency and reduced emissions
compared to purely fuel-powered vehicles, but they
still rely on fossil fuels. Eg: Yamaha, Honda.

Public Transportation
Public buses, trains, and metros are a substitute to
personal vehicles for commuting and traveling within
cities. They are often more cost-effective and
efficient, especially for longer distances or during
peak hours.

Human-Powered Options
Bicycles and e-cycles offer a sustainable and
environmentally friendly mode of transportation.

25
 ReadOn Insights

Key Challenges in the EV 2-Wheeler Industry

High Capital and Expertise Requirements

Developing and manufacturing EVs requires
massive capital investment and expertise in
research, development, production facilities, and
supply chains.

Battery Technology and Range Anxiety

Concerns about battery range and charging
infrastructure add up to range anxiety among

hts
consumers. Limited range and the low availability

sig
In
of charging stations can discourage potential

On
buyers from adopting electric 2-wheelers.

Read Charging Infrastructure

The low availability and accessibility of charging
infrastructure, especially in rural and semi-urban
areas, is a key challenge for the widespread
adoption of electric 2-wheelers.

Competition from Conventional Vehicles

Traditional fuel-powered 2-wheelers dominate
the market in India, and strong competition from
established manufacturers can pose a challenge
to electric 2-wheeler brands. Convincing
consumers to switch from conventional vehicles
to electric ones may require compelling value
propositions and incentives.

26
 ReadOn Insights

Challenges in Implementing Charging

Infrastructure in India

Insufficient Public Charging Infrastructure

As per the estimates of the Bureau of Energy
Efficiency, India should house 46,397 EV fast
charging stations in 9 cities by 2030. But currently
we only have 12,146 public EV charging stations.

Lack of Power Grid

Charging electric vehicles means high demand

sights
for electricity. But, India currently experiences

In
regular power cuts, especially in rural or

adOnunderdeveloped areas.

Re Geographical Barriers
India’s vast landscapes, from mountains, and
jungles, to rivers, make it difficult to set up
charging stations. For example, places with heavy
rainfall may need charging stations capable of
handling heavy water flow.

Result?
These challenges make the implementation of efficient
EV charging infrastructure difficult, and lead to range
anxiety. The fear of running out of charge without
access to a nearby charging station is a nightmare for
potential buyers.

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 ReadOn Insights

Whitespace Opportunities for New Players to

Enter the EV 2-Wheeler Industry

Corporate and Fleet Solutions

Targeting corporate clients and fleet operators with
tailored electric 2-wheeler solutions can be tapped into
by new brands. Brands can offer fleet management
solutions to businesses transitioning to electric mobility.

Battery Swapping Solutions

Battery swapping is like a petrol pump for an EV - the

sights
discharged battery can be exchanged with a fully
charged battery to save on charging times. Brands that

On In
invest in developing efficient and cost-effective battery

d
swapping solutions for E2Ws can address range anxiety

Rea concerns (particularly for long-distance travel).

Rural Market Penetration

Adoption of E2Ws is rising in semi-urban and rural
areas, thanks to subsidised power. But, this market
remains largely untapped. Brands can focus on
making models that are suitable for rural conditions,
like rugged build quality, longer battery life, and
affordability.

Customisation and Personalisation

Brands can explore opportunities to allow customers
to choose from a range of colors, accessories, and
features to create a tailored riding experience for
electric 2-wheelers.

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 ReadOn Insights

Conclusion

Wrapping up our ride through the vibrant landscape of India's

electric two-wheeler industry, it's clear that the road ahead is
as exciting as it is crucial for the future of transportation. With a
market poised to balloon to $12.44 billion by 2031, it's more than
just numbers - it's about making a genuine shift to greener,
cleaner ways of traveling around our cities. Sure, we're facing
some bumps, especially with the charging infrastructure, but
we shall overcome them too.

s
Innovators, from industry giants to tech startups, are all in,

sight
pushing the limits with tech-smart scooters that are not only

n
cool but also kind to our planet. And let’s not forget, every new

n I
plug-in point and every improved battery is a step toward

dO
a
reducing our carbon footprint - a win for our air, our health, and

Re
our pockets.

This shift will not only help reduce urban pollution and
dependency on fossil fuels but also herald a new era of
mobility that is clean, efficient, and sustainable. The electric
two-wheeler industry is not just about changing how we travel;
it's about crafting a greener future, one ride at a time.

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April 2024

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 ReadOn Insights

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About Us
ReadOn is a research focussed digital content company led by Shantanu
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Shantanu completed his graduation from St. Xavier's College, Kolkata.

After he qualified as a Chartered Accountant with an All India Rank 10, he
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across different strategic functions at Swiggy, he started working with

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other new-age businesses to help them scale. Over the last 3 years,

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Shantanu has given lectures on business and finance at prestigious
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n In
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O
d
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helping them solve their business problems.

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