Electric two-wheeler sales recorded a massive growth of 305.68% in 2022 after selling 6,15,365 units that year. In the year-ago period, the numbers stood at 1,51,685 units. The humongous jump is reflective enough of the trajectory and increasing acceptance of EVs in India.
Talking about EV acceptance, since India is still at a nascent stage in EV adaptation, low-speed, budget scooters have sold more than electric cars. The reason is sheer affordability and increasing availability of electric two-wheelers from popular two-wheeler makers such as TVS, Hero Electric, Bajaj etc. New players such as Ola and Ather have also played a pivotal role in creating the overall electric infrastructure.
Higher running cost of petrol pushes EV acceptance
For decades, two-wheelers have been a choice of personal transport for a vast majority of Indians. However, the higher running cost of petrol is pushing consumers towards electric vehicles as the running cost of an electric two-wheeler is estimated around Rs. 0.35 per km, compared with Rs. 2-3 for the petrol-powered* alternatives. Therefore, if an individual drives it for about 50kms per day, the savings amount to Rs. 100 per day.
The upcoming Budget 2023 is also expected to bring respite to EV players and aid electric startups in India.
Narayan Subramaniam, Co-Founder and CEO, Ultraviolette said that the future of any industry with high growth potential is heavily influenced by public policy. Given the accelerated EV adoption in India and OEMs expanding their product offerings, the industry needs a long-term policy that is balanced, consistent, and forward-thinking.
“By 2030, we expect about 45% EV adoption in India’s two-wheeler segment. The percentage of high-powered motorcycles is also expected to increase severalfold. We are already seeing the positive impact of PLI and FAME II in the adoption of EV two-wheelers, even against various macroeconomic headwinds. These incentives and support are also needed for advanced technologies, which will unlock the potential of homegrown innovators and cutting-edge R&D that can make India a global EV leader, he added.
Yogesh Bhatia MD and Co-Founder of LML said ‘In the ‘Techade’ we have got a massive flip that EV producers are the subsequent large imaginative and prescient of industry. To boost and strengthen our EV Industry, the Government of India (GOI) has come up with new policies like ‘Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India’ which ultimately lead to a surge in the demand for electric vehicles. To meet our high consumer demand and to have faster adoption of EVs in this industry, we really hope that FAME II subsidy will continue for the next few years. This will strengthen the entire EV ecosystem.”