Electric Two-Wheeler Market in India to Grow 25% in FY26
The Indian electric two-wheeler market is expected to witness a significant growth of 25% in FY26, as per Crisil Ratings. This growth is expected to cross one million units sold in FY25, driven by factors such as lower battery prices, affordable models, and government incentives. The market is also seeing a shift towards electric vehicles (EVs) as a preferred mode of transportation, which is expected to continue in the future.
In recent years, the electric two-wheeler market in India has experienced rapid growth, driven by the increasing adoption of EVs and the availability of affordable models. According to Crisil Ratings, the market is expected to grow at a CAGR of 25% from FY25 to FY26, crossing one million units sold in FY25. This growth is expected to be driven by the increasing demand for EVs, particularly in urban areas, where air pollution is a major concern.
The growth of the electric two-wheeler market in India is also driven by the government’s initiatives to promote the adoption of EVs. The government has launched several schemes and incentives to encourage the adoption of EVs, such as the FAME II scheme, which provides subsidies to manufacturers and buyers of EVs. Additionally, the government has also set a target of 30% of all new vehicle sales to be electric by 2030, which is expected to drive the growth of the electric two-wheeler market in the future.
Legacy players are expanding their market share, while new entrants face profitability challenges. The electric two-wheeler market in India is a competitive space, with several legacy players such as Hero Electric and TVS Motor Company expanding their market share. These players have a strong distribution network and brand recognition, which is expected to help them to increase their market share in the future. However, new entrants to the market, such as Ola Electric and Ather Energy, are facing profitability challenges due to high competition and the increasing cost of raw materials.
Lower battery prices, affordable models, and government incentives are fueling demand. The cost of batteries is a major factor in the adoption of EVs, and the decreasing cost of batteries is expected to continue to drive the growth of the electric two-wheeler market in India. Additionally, the availability of affordable models and government incentives are also expected to continue to fuel demand for EVs in the future.
Competition will remain a key force shaping the industry’s future. The electric two-wheeler market in India is a competitive space, with several players vying for market share. The competition is expected to continue to drive innovation and improve the quality of products, which is expected to benefit consumers. However, the competition is also expected to put pressure on the profitability of players, particularly new entrants, which may face challenges in maintaining their market share.
In conclusion, the electric two-wheeler market in India is expected to grow 25% in FY26, driven by factors such as lower battery prices, affordable models, and government incentives. Legacy players are expanding their market share, while new entrants face profitability challenges. The competition in the market is expected to continue to drive innovation and improve the quality of products, which is expected to benefit consumers.
