Indian Buyers Spoilt For Choice In Electric Two-Wheeler Market
Buyers can now opt for electric scooters from new entrants like Ola and Ather Energy, as well as legacy players Hero and Bajaj.
India’s electric two-wheeler space is brimming with options for buyers, as legacy brands and new-age companies have gone full throttle on product launches to capture the rapidly growing but nascent market.
Including industry leader Hero MotoCorp Ltd.’s launch of its first electric scooter Hero Vida V1 on Oct. 7, the segment has seen more than five launches from leading players so far in 2022.
Makers in this space include legacy players such as TVS Motor Co., Bajaj Auto Ltd. apart from Hero MotoCorp, as well as new-age entrants such as Hero Electric Pvt., Ola Electric Technologies Pvt., Okinawa Autotech Pvt. and Ampere Vehicles Pvt., who are leading the race in terms of retail sales.
Buyers seem interested in the products on offer. In the quarter ended September, a typically weak quarter, sales of the top six electric two-wheeler makers increased 6% sequentially to 1.15 lakh units.
Higher sales numbers could also indicate that the industry has overcome the supply-chain issues it faced in the first quarter of fiscal 2023.
“Penetration of electric two-wheelers has doubled to 5% compared with last year,” Manish Raj Singhania, president of dealers' body Federation of Automobile Dealers Associations, told BQ Prime. “While festivals have boosted sales for the period, the strong momentum is likely to continue even after the festivals."
A buyer can purchase a high-speed electric two-wheeler by spending as low as Rs 70,000 or opt for a fancier model by spending up to Rs 1.6 lakh in the Indian market.
While the cheaper, entry-level vehicles are mostly produced by new-age brands, products from legacy brands come at a premium.
Buyers can choose a product based on the battery power, top speed and price points they prefer.
“Entry of the legacy brands is good for the industry, as it gives buyers more options,” Sabyasachi Chakraborty, national head of sales at Greaves Electric Mobility, told BQ Prime.
Chakraborty does not expect the industry to opt for aggressive pricing, as even the current sales trend will ensure higher penetration of electric two-wheelers, he said.
Amid concerns about the safety of electric two-wheelers, it remains to be seen if the entry of established brands has any impact on the perception of such products.
The financing of electric two-wheelers has also received a push with the increasing participation of key players, including banks, non-banking lenders and startups.
“Financing of electric two-wheelers has been good with major institutions offering as high as 90% financing for such vehicles,” Chakraborty said.
According to a report by The Economic Times, the government is also looking at establishing a billion-dollar fund to offer default guarantees on electric vehicle purchases, which may significantly reduce the risk for financiers.
With overall EV penetration low in India, makers of electric two-wheelers are banking on new launches to aid wider adoption, which would also hasten India’s clean mobility ambitions.