India electric scooters and motorcycles market size valued at $24.6 million in 2016, it is expected to grow at a CAGR of 45.4% during 2017 – 2025, to reach $715.9 million by 2023. Electric scooters started commercially selling in India in mid 2000s. However, the sales grew slowly, mainly because of sub-standard products, lack of government support and high taxes. However, with increasing government support and rising population awareness, electric scooter and motorcycle sales in the country is expected to grow significantly over the forecast period. India would follow the toughest global emission norms Bharat Stage (BS)-VI, from the current BS-IV, by 2020, skipping the BS-V. Such policies or initiatives to curb pollution levels in the country promises a positive regulatory environment for electric two-wheelers in coming years. Also, the investors interest in this market has increased and start-ups, backed up by leading venture capitalists have entered into the market.
The competition is less with only a few players of players operating in the India electric scooter and motorcycle industry. Few players closed down their operations in the past due to less sales. Hero-Electric is a clear market leader accounting for close to three-fourth of sales. However, the competition is set to increase in the coming years. Start-ups and big automobile manufacturers are expected to introduce electric two-wheelers in India in the next few years.
Over the last decade, start-ups backed up by big venture capitalists have entered the market. For instance, Ather Energy, formed in 2013, is funded by Tiger Global Management. Other important players in the market includes Tork and Electrotherm. Big two-wheeler manufacturers such as Bajaj, Mahindra, TVS and Hyosung also have plans to launch electric scooters in the next couple of years.
