Outlook of the Indian Electric Two-Wheeler Market at the Beginning of 2024
The Indian electric two-wheeler market has seen a 14.1% increase in sales during the first quarter of 2024, totaling 273,590 units sold.
Although growth is evident, this progression is slightly below expectations, mainly due to recent changes in state subsidy policies.
The Implications of Governmental Reforms
The modest growth is attributed to the “EMPS 2024” plan adopted by the government, which has reduced subsidies for the purchase of electric scooters and motorcycles. Indeed, a budget of 55 million euros was allocated to the sector for a total of 333,387 potential vehicle sales over a four-month period. The new subsidy is now limited to 55 € per kWh of battery with a cap of 15% of the vehicle’s production cost.
Insights into Market Dynamics
The Indian electric two-wheeler industry had previously witnessed an explosion in sales, going from 176,996 vehicles in 2021 to 904,262 in 2023. This spectacular expansion partly justifies the current slowdown. However, it is important to underscore the continuation of significant investments by giants such as Yamaha and Honda, thereby demonstrating their confidence in the potential of the Indian market.
Local Players in Full Expansion
The strategy of supporting national manufacturers, via subsidies favoring locally assembled vehicles with Indian components, has reinforced the dominant position of certain brands in the sector. Ola Electric maintains its status as a leader, while TVS Motor Company stands out with its highly popular iQube model, and other companies like Bajaj Auto and Ather Energy are beginning to make their mark on the market.
Despite a slight slowdown influenced by subsidy policies, the electric two-wheeler industry in India demonstrates vitality and growth potential, continuing to attract substantial investments and to evolve the local competitive landscape.