The Future Is Electric

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: In the last three years at least six players have entered this market. Another eight have either announced their plans or taking their first tentative steps there. And while all of them have stepped on the gas to boost sales, their marketing pitch is aimed at different consumer needs—while some harp on “convenience”, for others, it’s “economy” at a time of spiraling fuel prices.

For a market that is yet to gather sales momentum, electric two-wheelers (e2w) have no dearth of interest, skepticism or target manoeuvrings. According to the Society of Manufacturers of Electric Vehicles (SMEV), the e2w market in India stood at 1,10,000 units in 2008-09, or roughly Rs 350 crore in value. While it is still a puny 1.5% of the entire two-wheeler market in India, it is expected to grow at 15-20% this year, even if there are no significant favourable stimuli, say analysts. And if the required regulatory and policy support is in place, the market has the potential to register a 35-40% growth for the next two-three years.

The key forces driving the e2w market growth are improvements in battery technology, strong local regulatory support and deteriorating public transit service. Not to mention the cost savings that will accrue to consumers. There are close to 14 organised electric vehicle manufacturers in India and together they command about 70% of the market. The balance comprises unorganised players and importers/traders. While competition is bound to hot up, the market will remain with the traditional players. “Smaller players would be wiped out once stricter certification and testing processes are implemented,” says Naveen Munjal, chief executive of Hero Electric, a serious contender in the market.

In terms of manufacturing criteria, the e-bikes can be classified into two segments. The first segment comprises up to 250-w motor power capacity (up to 25 km per hour speed) e-bikes that do not require a driving licence, and the second segment would be the over 250-w motor power bikes that are equivalent to a petrol two-wheeler with high power and high load capability. Most of the manufacturers in India entered the e2w market via the 250-w-plus motor power segment, which contributes to nearly 65-75% of electric bike sales, says Shailesh Bhandari, managing director of Electrotherm India, India’s first and largest-selling e2w company. It’s brand, Yobyke, probably enjoys the highest recall in the segment.