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India’s sales volume of electric two-wheelers is expected to reach 22 million by 2030, says Redseer report

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  • India is primarily a two-wheeler market with total EV penetration, including two-wheelers, as of CY2022 of 3.2%.
  • Challenges faced by two-wheeler users in India include range anxiety, poor infrastructure, slow battery charging, unavailability of a high-speed support network, and poor construction.
  • The report reiterates the importance of government as the fundamental driver for early adoption of electric vehicles FAME India and PLI schematics.

The sales volume of electric two-wheelers in India is expected to reach 22 million by 2030, according to the latest report on the landscape of electric two-wheelers (E2W) in India by a global consultancy red-visioned Strategy advisors.

India is primarily a two-wheeler market with an overall electric vehicle (EV) penetration rate, including two-wheelers, as of CY2022 of 3.2%. While in other developed countries the EV market is dominated by four-wheelers with four-wheeler penetration as high as 63% and 56% in the US and China respectively, Charging the future for a greener plant, Electric 2W – Approval from 0 to 100 report revealed.

One of the critical drivers of growth is the emergence of numerous brands in the E2W space, such as Ather, Ola, Hero Electric, Bajaj, TVS, Okinawa, PURE EV and Revolt. More options mean better acceptance in all price ranges. As a result, sales of electric two-wheelers are increasing across India, including in Tier 3 and Tier 4+ cities, Redseer revealed.

“According to our research, the total cost of ownership of E2W is only slightly lower for a casual user, but the daily commuter and heavy users save significantly over the life of the vehicle, making E2Ws the right choice for players such as food aggregators. and last-mile delivery partners for whom total cost of ownership can be reduced by more than 50% compared to an ICE vehicle,” said Aditya Agrawal, partner at Redseer Strategy Consultants.

Limited range, poor charging infrastructure and more plague the Indian 2W market

Despite strong market winds, challenges remain for faster adoption of E2W: both on the demand and supply sides. According to the report, the main challenges faced by electric two-wheeler users in India were poor battery charging infrastructure, limited top speed, unavailability of high-speed support network, reduced range and poor build quality.

“While the benefits of moving to E2Ws are clear, there are many challenges to overcome, with range anxiety being the most common barrier among consumers. The range offered by most E2W on the market is much higher than the average distance traveled, which is about 25 km, with 90% of users traveling less than 50 km/day. However, a long drive is still a challenge for E2W owners,” added Agrawal.

Recent 2W internal combustion engine buyers also indicated that they would buy electric two-wheelers next time if more charging stations and fast charging were available across the country, the report found.

What will lead to EV growth in India?

The primary actions required to achieve over 80% of 2W electrification were making EVs affordable through emerging cell technology and localized cell production. In addition, omnichannels and better offline stores for E2W will also accelerate growth.

“OEMs (original equipment manufacturers) must work together to ensure that no unsafe vehicle is rolled onto the road. Recent vehicle fires have put customers on guard, impacting sales volume,” said Redseer. There was also reference to the increased awareness of the benefits of owning an electric vehicle.

The report further elaborates that the E2W ecosystem needs to work on 4 axis adaptability, awareness, availability and affordability.

The report reiterates the government’s importance as a fundamental driver of early electric car adoption with programs to accelerate hybrid and electric vehicle adoption and production in India (FAME India) and production-related incentives (PLI). These arrangements should continue for years to come until E2W becomes mainstream, as there have been fewer E2W sales in regions where government subsidies were rolled back, Redseer noted.

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