The adoption of e-cycles is picking up pace in the country, thanks to them being more eco-friendly and cost-effective compared to traditional engine vehicles, especially for short-distance commutes. Over the past few years, brands such as Hero Lectro, Firefox, GoZero Mobility, Zadd Bikes, Giant Bicycles, EMotorad and Motovolt Mobility have entered the fray and are banking on innovative features and competitive pricing to push category growth. A Netscribes industry report says while the share of e-cycles sold last year was less than a percent on the overall cycle market but is expected to grow to 3.45% by 2027 with a CAGR of 49.74%.
E-bicycles will grow at the expense of two- wheelers, notes Anand Ramanathan, partner, Deloitte India. Experts also note that for e-cycle brands, the task is not just growing their own brands but also growing the category as a whole and taking it mainstream. Not only does the country lack cyclist-friendly infrastructure, it also lacks general awareness about the advantages of electric vehicles. To tackle the issue, Motovolt Mobility conducts regular camps to acquaint people with the idea of electric cycles and their ease of use. The brand is also trying to fill the gap in the market between the lowest value option for personal mobility (a branded bicycle) that starts around Rs. 5,000, and the next option of a scooter at around Rs. 70,000 by pricing its e-cycles between Rs. 28,000 and Rs. 45,000. Tushar Choudhary, founder and CEO, says e-bicycles contribute to almost 95% of its revenue currently.
On its part, Hero Cycles has invested Rs. 400 crore in developing its new state-of-the-art facility in Punjab with a planned capacity of six million cycles annually. It is conducting a mix of ATL and BTL awareness campaigns, test rides, and activations for its brands. “We are hopeful that ecycles will contribute up to 20% per cent of our revenue over the next five years,” says Aditya Munjal, director, Hero Cycles.
For EMotorad the focus is raising awareness about the health benefits of evehicles. Says founder, Rajib Gangopadhyay, “We aim to penetrate deeper into the tier-II and III cities in India and hope to grow two-three times in the next three years.” It offers e-bicycles that can be charged at any plug point, just like mobile phones, and sport batteries that are detachable and light. Exports contribute 70% of its sales revenue currently.
E-bicycles are exempt from tran- sport rules such as insurance, taxes, registration and so bank financing is hard to come by at the moment. Looking ahead, Choudhary of Motovolt Mobility, says a major catalyst for the industry growth would be the availability of finance at low interest rates,and the participation of PSU banks in offering finance to this vehicle category.
It is also critical to incentivise customers with active policy support, adds Munjal, director of Hero Cycles. “We have seen an almost 100% increase in adoption in Delhi after the inclusion of e-cycles in the Delhi EV Policy and the subsequent subsidy. As a result, e-cycle costs came down by as much as Rs. 7,500 and cargo ecycles by Rs. 15,000.” The extension of customs duty exemption to the import of capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles as announced in the recent Budget will go a long way to boost the segment growth, he adds.