Financial incentives drive demand
The Government’s increasing provision of financial incentives is boosting the sales of electric scooters and motorcycles in India, projecting a CAGR of 63.9% from 2020 to 2025 when revenue would be more than US$1.0 billion for the industry.
Sales volume would be 1,080.5 thousand units by the end of 2025, a CAGR of 57.9% between 2020 and 2025, according to a ResearchAndMarkets report released on 21 Jan 2021. In 2019, nearly 152.0 thousand units of electric motorcycles and scooters were sold in the country, registering a 20.6% growth annually from 2014.
Because of the rising demand for these vehicles in Uttar Pradesh, a state with the highest demand for two-wheelers in the country, many original equipment manufacturers (OEMs) are rapidly increasing their dealer network. This is, in turn, pushing up the sales of electric motorcycles and scooters in the state. The two-wheelers are registering soaring sales in the tier-2 and tier-3 cities of the state.
“A key factor fueling the growth of the market is the provision of lucrative financial incentives and subsidies on electric vehicles by the government. Moreover, the government is also providing tax exemptions and purchase rebates for promoting the utilization of electric vehicles and two-wheelers in the country,” said the report.
Electric scooter and motorcycle is a preferred mode of transportation to control pollution.
The ballooning sales of these scooters would be driven by the availability of a wide array of electric scooter models in the country, their affordable prices, and their ability to serve as excellent alternatives to the traditional fossil fuel-powered mopeds.
Hence, it can be safely said that the market will exhibit rapid growth in the coming years, mainly because of the rising implementation of favorable government policies regarding the sales of electric vehicles and the increasing consumer preference for electric scooters and motorcycles over their fuel-based variants in the country.
Leading two-wheeler manufacturers are Hero Electric Vehicles Pvt Ltd, Electrotherm (India) Ltd, Avon Cycles Ltd, LOHIA AUTO INDUSTRIES, Okinawa Autotech Pvt Ltd, TVS Motor Co Ltd, TWENTY TWO MOTORS PVT LTD (22 KYMCO), Bajaj Auto Ltd, Ather Energy Pvt Ltd, Ampere Vehicles Pvt Ltd (Greaves Cotton Ltd), Tunwal E-Vehicle India Pvt Ltd. #economy #manufacturing #transportation #pollution /fiinews.com
