India’s electric two-wheeler (e2W) market has achieved a significant milestone, surpassing one million units in retail sales in 2024. This remarkable growth underscores the increasing demand for electric mobility, with e-scooters at the forefront of the transition. Supported by government incentives and technological innovations, the sector is positioning itself for an even more electrified future. In this article, we delve into insights from Yogesh Bhatia, MD & CEO of LML, who discusses the driving forces behind this surge, the opportunities ahead, and how innovation is shaping India’s journey toward a sustainable, greener transportation ecosystem.
In 2024, the retail sales of electric two-wheelers reached an impressive 1,000,987 units between January 1 and November 11, marking a historic achievement. This surge accounted for the largest share of India’s overall electric vehicle (EV) sales, which totalled 1.68 million units during the same period—making up 59.54% of total EV sales. This is the first time the e2W segment has crossed the one million mark within a single calendar year, bringing India closer to its goals for a sustainable future.
Within the electric two-wheeler industry, e-scooters have been leading the charge with a penetration rate of around 15%. This surpasses the 5-6% penetration seen for other two-wheeler categories. In certain Indian states, e-scooter adoption rates climb even higher, exceeding 40%. With continued technological advancements and exciting new launches on the horizon, the momentum of electrification in this segment is only set to accelerate.
These encouraging numbers indicate a growing consumer interest in electric two-wheelers in the country. The Government of India has played a significant role in fuelling this growth momentum by offering a flurry of incentives, including subsidies, tax benefits, and easy financing options for buyers. Programs such as the PM eDrive scheme and others have made electric two-wheelers more affordable and accessible to a wider range of consumers. In addition, leading manufacturers have responded to the increasing demand by ramping up production and expanding their range of electric two-wheelers. Over the last year, the market has witnessed the introduction of various new, innovative models of electric scooters and motorcycles. These new models not only offer improved design and aesthetics but also come equipped with enhanced safety, connectivity and other features. Advancements in battery technology have further improved the performance of electric two-wheelers, providing extended range and faster charging times as compared to traditional models. The launch of these new, improved models has given many more lucrative options to consumers to choose from, thus triggering the demand even further.
This remarkable surge in the electric two-wheeler market has also been successful in capturing the attention of investors. The government’s strong support for electric mobility and rapid technological advancements have also created a favourable environment for investment in the sector. With the market poised for rapid expansion, investors have a unique opportunity to capitalize on the growing demand for electric two-wheelers and contribute to sustainable mobility in the country. This increased investment is driving innovation in the sector at a rapid pace, thereby leading to many more breakthrough advancements.
The industry is clearly on the right path to achieve the 2030 electrification goals set by the government. Surpassing the one million mark in annual electric two-wheeler sales is a commendable achievement, but we must not rest on our laurels or become complacent. Instead, this should serve as motivation to strive for even greater achievements. Ultimately, the goal is to keep marching ahead, using this milestone as a solid foundation for further success. Moving forward, the market is projected to continue its upward trajectory, with electric two-wheelers projected to capture over 13% market share by 2026-27, according to a report. Now is the time to capitalize on this momentum and push forward towards a sustainable future.