India is the world’s largest two-wheeler (2W) market, with an estimated 375–400 million 2Ws on the road, and the country’s electric 2W market is expected to be over 80% of the overall 2W market by 2030, according to a report released by Redseer Strategy Consultants on Tuesday.
Consumers were increasingly opting for EVs, understanding that the Total Cost of Ownership (TCO) was more favourable than their petrol counterparts, especially to carry out e-commerce delivery etc. However, range anxiety was still a concern for customers and charging infrastructure would be key in removing this barrier to further adoption, found the study.
According to the report, one of the critical drivers of growth is the rise of numerous brands in the E2W space, such as Ather, Ola, Hero Electric, Bajaj, TVS, Okinawa, PUREV and Revolt. As a result, consumers have better price options and variety and this scenario has been driving E2W sales across the country including in tier 3 and tier 4+ cities.
“On the consumer end, features, running costs, and price constitute the top three consideration factors for buying an electric vehicle, followed by environmental concern and performance. Although the purchasing cost of E2W is slightly higher, they win when it comes to running costs compared to their Internal Combustion Engine (ICE) counterparts,” said Aditya Agrawal, partner at Redseer Strategy Consultants.
Although the benefits of switching to E2Ws were clear, there were many challenges to overcome, with ‘range anxiety’ being the most prevalent barrier among consumers, he said.
The range offered by most E2W on the market is much higher than the average distance travelled, which is about 25km, with 90% of the users travelling less than 50 km/day.
“However, a long ride is still a challenge in E2W owners’ minds. Underpenetrated charging infrastructure and longer charging times remain the biggest challenges to existing users and the most significant deterrent to those on the fence,’‘ Mr. Agrawal added.
