India Electric Two-Wheeler Market Assessment, By Vehicle type [Electric Motorcycle, Electric Scooter], By Type of Battery [Lithium Ion, Lead Acid], By Battery Technology [Removable, Non-Removable], By Distribution Channel [Original Equipment Manufacturers (OEMs), Dealers and Distributors], By Region, Opportunities, and Forecast, FY2018-FY2032F

India Electric Two-Wheeler Market is forecast to grow at a CAGR of 28.34% during the forecast period between FY2025-FY2032 and was valued at USD 1.6 billion in FY2024. Being one of the largest two-wheeler marketplaces in the world, India’s electric two-wheeler market is driven by rising environmental concerns among consumers, government schemes offering rebates and subsidies on usage of electric vehicles to promote reduced carbon emissions.

A shift towards electric mobility has become essential in India to control the adverse environmental impacts which is being caused by the increasing vehicles on the road. Electric two-wheelers are small, self-propelled vehicles that run on either a rechargeable battery or an integrated electric motor. They are an environmentally friendly replacement to other forms of transportation since they are lightweight, adaptable, durable, affordable, fuel-efficient, and fuel-efficient. The compact electric two-wheelers are becoming more popular since they make it possible to travel short distances faster and avoid traffic bottlenecks.

Environmental Consciousness coupled with Social Influence driving market growth

Fossil fuels like, diesel, petrol and natural gas are used for transportation, carbon dioxide (CO2) is released into the atmosphere, compromising both human health and the environment. Electric vehicle (EV) production and promotion are significant steps in this approach. They lead to less noise pollution, zero carbon emission, better air quality, and overall fuel savings. Indian population is becoming highly conscious of the environmental concerns and switching to eco-friendly modes of transport, including electric two-wheelers. Moreover, India being a highly social nation, influence from peer, family members, celebrities and social media adds to the adoption preferences of buyers in the country.

Technological Advancements Drive Market Growth

Technological advancements are considerably driving the growth of the electric two-wheeler market in India. Innovations in battery technology, charging infrastructure, and smart features make electric two-wheelers more efficient and appealing to consumers. Government-supportive policies, such as subsidies and incentives, further accelerate the adoption of electric two-wheelers. Manufacturers are expanding their offerings. The increasing focus on sustainability and reducing carbon emissions encourages consumers to shift towards electric two-wheelers. These technological and policy-driven developments are creating an ecosystem for electric mobility in India, promising a greener and more efficient future for transportation. Many companies are launching new electric two-wheelers and several acquisitions for charging stations.

For instance, in April 2024, Ather Energy Limited launched the Rizta, a family scooter (two-wheeler) with advanced features. The Rizta prioritizes comfort, convenience, and safety, offering features like SkidControl and WhatsApp integration on the dashboard. It comes in two models, Rizta S and Rizta Z, with battery capacities of 2.9 kWh and 3.7 kWh.

In January 2025, Vietnamese EV manufacturer VinFast Auto Ltd. has launched five electric scooter models—Clara S, Thion S, Feliz S, Vento S, and Evo 200—in India. Each scooter is equipped with a 3.5kWh LFP battery, offering a range between 190 to 210 km on a single charge, depending on the model.

Government scheme Accelerating Market Growth

By providing subsidies for the purchase of electric vehicles, the government of India is helping the industry grow at a faster pace. In line with this, these incentives have increased the consumer acceptability of battery-powered scooters and motorbikes. Tax deductions, purchase reimbursements, and financial incentives are some supportive initiatives for EV buyers. As a result, the government is offering subsidies through the FAME II (Faster Adoption and Manufacture of EV’s) scheme and separate state EV policies to encourage the adoption of electric vehicles more quickly.

For instance, Pune-based electric two-wheeler startup BGauss Auto Private Limited has raised INR 161 crore (USD 18.6 million) from Bharat Value Fund. The investment will be utilized to expand its presence in India and overseas, enhance manufacturing capacity, and boost in-house R&D for upcoming product launches.

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Impact of COVID-19 on India Electric Two-Wheeler Market

The pandemic had an impact on the public's health and initiated an economic crisis globally. The pandemic had a significant impact on production and the supply chain. Due to restrictions the Indian government imposed on imports coming from China, the supply of lithium-ion batteries was affected, which led to stagnating sales of electric two-wheelers. All automobiles’ sectors, including factories, showrooms, and workshops, were closed, resulting in a massive drop in overall production and sales of automobiles. In addition to taking opportunity of the demand, two-wheeler EV manufacturers are now expecting an increase in sales following the lockdown, claiming that their vehicles are now more cost-effective and acceptable for commuting within cities.

Report Scope

“India Electric Two-Wheeler Market Assessment, Opportunities and Forecast, FY2018-FY2032F,” is a comprehensive report by Markets and Data, providing in-depth analysis and assessment of the current state of business in the electric two-wheeler market in India, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, opportunities and forecasts (FY2025-FY2032). Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.

Report Attribute	Details
Base Year of Analysis	FY2024
Historical Period	FY2018-FY2024
Forecast Period	FY2025-FY2032
Market Size in FY2024	USD 1.6 billion
Projected Growth Rate	CAGR of 28.34% from FY2025-FY2032
Revenue forecast in FY2032	USD 10.96 billion
Units	Revenue in USD and Volume in Units
Segments Covered	By Vehicle Type By Type of Battery By Battery Technology Type By Distribution Channel
Regions Covered	Top 5
Key Companies Profiled	Hero Electric Vehicles Pvt. Ltd., Ola Electric Technologies Pvt. Ltd., Okinawa Autotech Pvt. Ltd., Ather Energy Pvt. Ltd., Ampere Vehicles Pvt. Ltd., PurEnergy Pvt. Ltd., TVS Motor Company Ltd., Revolt Intellicorp Pvt. Ltd., Benling India Energy and Technology Pvt Ltd, Bajaj Auto Ltd.
Customization Scope	15% free report customization with purchase.
Pricing and Purchase Options	Avail the customized purchase options to fulfil your precise research needs.
Delivery Format	PDF and excel through email

 

In this report, India Electric Two-Wheeler Market has been segmented into following categories:

1. India Electric Two-Wheeler Market, By Vehicle Type
   • Electric Motorcycle
   • Electric Scooter
2. India Electric Two-Wheeler Market, By Type of Battery
   • Lithium ion
   • Lead acid
3. India Electric Two-Wheeler Market, By Battery Technology Type
   • Removable
   • Non-Removable
4. India Electric Two-Wheeler Market, By Distribution Channel
   • Original Equipment Manufacturers (OEMs)
   • Dealers and Distributors
5. India Electric Two-Wheeler Market, By Region
   • North
   • South
   • West and Central
   • East

Key Player Landscape and Outlook

Factors such as intensified competition, rising demand for two-wheeler, environmental sustainability, and globalization result in major challenges for vehicle production to sustain in the industry. Wide range of companies are involved in the development and manufacturing of Electric Vehicles to stay ahead of the competition and are making significant investments in R&D projects to introduce new products and increase production capabilities.

In January 2025, Suzuki Motorcycle has introduced the e-Access electric scooter and a flex-fuel variant of the Gixxer SF 250. The e-Access aims to cater to the growing demand for electric mobility, while the flex-fuel Gixxer SF 250 supports ethanol-blended fuel, promoting sustainable transportation options.

Key Players Operating in India Electric Two-Wheeler Market

• Hero Electric Vehicles Pvt. Ltd.
• Ola Electric Technologies Pvt. Ltd.
• Okinawa Autotech Pvt. Ltd.
• Ather Energy Pvt. Ltd.
• Ampere Vehicles Pvt. Ltd.
• PurEnergy Pvt. Ltd.
• TVS Motor Company Ltd.
• Revolt Intellicorp Pvt. Ltd.
• Benling India Energy and Technology Pvt Ltd
• Bajaj Auto Ltd.

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