Exploring the Preference of Indian Electric Vehicle Consumers for Two-Wheelers
In the Indian Electric Vehicle (EV) market, two-wheelers have emerged as the frontrunners, surpassing electric cars in popularity among Indian consumers. While electric cars may be gaining traction globally, it is evident that Indian consumers have a strong inclination towards two-wheelers.
Two-wheeler sales in the Indian automotive industry saw sharp growth in FY2022. According to the Society of Indian Automobile Manufacturers (SIAM), two-wheeler sales in the local market grew by 16% year-on-year to 2,810,138 units in the first two months of this fiscal year. Statista estimates that the demand for electric cars in India could reach up to 8.2 million units per year, considering the country’s huge market potential. This forecasted demand is a crucial part of the estimated 21 million units per year.
In fact, Autocar India also reported a massive 305 percent growth in sales of electric two-wheelers over the previous year. It states that the electric two-wheeler market has grown exponentially to exceed 600,000 vehicles per year in 2022, up from less than 2,000 in 2013. Electric car sales will account for 4 percent of total two-wheeler sales in 2022, a promising change. towards sustainable transport.
Pritesh Mahajan, co-founder and CEO of Revamp Moto, expresses his confidence in the future of electric two-wheelers in India: “I believe electric two-wheelers have a promising future in India. The unique features of the two-wheeler market make it easy to convert into an electric car. Electric scooters in particular have sold more than other electric vehicles because their initial costs are lower and there is a wide variety of models on the market.
What makes the Indian consumer prefer a two-wheeler electric car over a four-wheeler? From affordability to practicality and environmental awareness, several key reasons shed light on why Indian consumers choose electric two-wheelers over cars.
Cost considerations
Buying an electric car might be the dream of an Indian electric car consumer, but the cost is prohibitive. Exorbitantly priced electric cars are often beyond the reach of middle-class India. In contrast, electric two-wheelers are more affordable, making them an attractive option for budget-conscious consumers. The low price level, combined with government incentives and support for the introduction of electric vehicles, has made electric cars economically accessible to a wider population.
Local EV manufacturers are introducing new models to offer innovation at a lower price. For example, Revamp Moto introduced two models, the RM Buddie 25, a slow electric car for daily activities and commuting, and the RM Mitra. Other notable names include Brisk-Ev – Origin and Origin Pro and Gogoro India – 2 Series.
The boom in this industry is also drawing partnerships with other industries, such as finance. In July, Quantum Energy, an EV startup specializing in the design, development, manufacture and sale of electric scooters, partnered with Bike Bazaar, an RBI-registered finance company specializing in retail financing of used and new vehicles. Then Madhya Pradesh-based electric vehicle maker Enigma partnered with EZFinance, which offers 0% down payment loans to eligible customers.
City traffic and congestion
Traffic congestion in busy Indian cities is another factor that makes two-wheelers an attractive option for navigating congested streets and narrow lanes. The compact size of electric scooters and bicycles enables easy navigation in traffic, which shortens commuting times and reduces stress. A significant factor is also the availability of charging infrastructure, which is more suitable for two-wheelers as they require less energy and time to charge compared to cars.
In addition, two-wheel bikes take up significantly less parking space than cars, making them a practical choice for city dwellers who struggle with parking restrictions every day. In addition, the compact size of electric two-wheelers facilitates storage in residential buildings where space may be limited.
Partnerships are also created with local retailers to create long-term relationships and business opportunities. For example, Indian electric two-wheeler brand e-Sprinto in June revealed plans to open 10 showrooms in various cities in Assam by August 2023 as part of its strategic growth plan to establish a strong presence in the key Northeast market. .
Similarly, electric motorcycle startup Raptee opened its first manufacturing facility in Chennai with a total investment of INR 85 million and aims to employ 470 people. Production is scheduled to start in the second half of 2023 with a state-of-the-art R&D facility and a production capacity of one million units per year.
Limited range requirements
Another factor taken into account by the consumer is distance.
Most urban trips in India are short to medium distances, often well within the limitations of electric two-wheelers. It’s a known fact that ride anxiety is still a concern with EVs, and the relatively shorter distances of two-wheelers make them a practical and viable option for daily commutes.
For many Indian consumers, the ease of overnight charging at home or workplace charging stations is more than enough to meet their travel needs.
An environmentally friendly appeal
Environmental awareness is undoubtedly gaining traction among Indian consumers, an aspect where two-wheelers have an edge.
Electric vehicles by their nature do not produce exhaust gas emissions, which contributes to cleaner air in urban areas.
Many consumers are drawn to the idea of reducing the carbon footprint without compromising personal mobility. This fits well with India’s efforts to combat air pollution and move towards a more sustainable future.
According to India’s pledge at the UN COP27 climate meeting in Egypt in November, India will prioritize a phased transition to cleaner fuels and cut household consumption to achieve net zero emissions by 2070.
Recent setbacks
While the growth in sales of electric two-wheelers shows India’s potential for sustainable transportation, government support and infrastructure play a crucial role.
In July, sales suffered a setback when the government revised the incentive scheme, Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles, commonly known as FAME-II.
There is still a long way to go compared to China, which sold a whopping 45 million electric two-wheelers in 2022. However, India’s large population and growing market potential provide a strong foundation for the growth and development of the electric vehicle sector.
Indians have always loved two-wheelers
After the 1970s, when two-wheelers entered the Indian market in a big way, the consumer’s perspective changed from a status vehicle to a comfort vehicle.
In the 1980s, companies like Yamaha, Suzuki and Honda entered India, revolutionizing the two-wheeler market. A similar play may also develop with electric cars.
For example, in June, Tsuyo Manufacturing Pvt Ltd, which manufactures powertrains for electric vehicles, approached the Indian Institute of Technology in Delhi to encourage cooperation and collaboration to introduce new technological advances in electric vehicles.
Two-wheelers have been an integral part of Indian culture and daily life for decades. They are often seen as a symbol of independence and freedom, especially for young riders. As the electric vehicle market develops, this sentiment extends to electric two-wheelers, allowing consumers to embrace modern technology within familiar cultural norms.
