India Electric Two-Wheeler Market By Vehicle (Scooter/Mopeds, Motorcycle), By Range (Less than 50 Km, 50-100 Km, 101-150 Km, Above 150 Km), By Battery Capacity (<25Ah, >25Ah), By Battery (Lead Acid, Li-ion), By Region, Competition, Opportunities & Forecast, 2021-2031F

Market Overview

India Electric Two-Wheeler Market was valued at USD 785.81 million in 2025 and is expected to reach USD 3226.16 million by 2031 with a CAGR of 26.54% during the forecast period.

India’s electric two-wheeler market is transitioning rapidly due to shifting consumer preferences toward sustainable mobility and evolving urban transport needs. The expansion of charging infrastructure and the implementation of favorable policies such as FAME-II and state-level EV subsidies are strengthening industry growth. For instance, In September 2024, the Minister of Heavy Industries for the Indian Union announced the forthcoming launch of the PM E-DRIVE subsidy scheme aimed at electric two-wheelers. Under this initiative, purchasers will be eligible for a maximum subsidy of up to USD 118.5 during the inaugural year of the PM E-DRIVE Scheme. With enhanced battery technology and rising cost efficiency in electric drivetrains, EVs are becoming increasingly viable compared to ICE counterparts. The market is also benefitting from rising concerns over pollution and regulatory mandates that push clean energy alternatives.

Technological advancement and continuous innovation in battery chemistry, lightweight chassis, and vehicle connectivity are enhancing product offerings. Industry players are focusing on improving vehicle range and reducing charging time to attract a broader customer base. Electric scooters and motorcycles are being designed to suit both urban commuting and rural utility needs, thus expanding the addressable market. New startups and traditional OEMs are launching more affordable models, fostering adoption across diverse income segments.

The sector faces limitations in raw material availability, particularly lithium and rare earth elements, impacting battery manufacturing costs. Inconsistent infrastructure development across regions, especially rural and semi-urban areas, poses a challenge. Consumer concerns regarding range anxiety and the resale value of electric vehicles still persist. However, continuous investments in local manufacturing, battery recycling, and dealership expansion are expected to resolve several of these barriers in the coming years.

Market Drivers

Supportive Government Policies

Government initiatives such as the FAME-II scheme, GST reduction on EVs, and income tax rebates on EV loans are catalyzing market growth. These incentives lower the overall cost of ownership and promote electric vehicle adoption among consumers. State-level subsidies and registration fee exemptions further strengthen the value proposition of EVs. Policy frameworks encourage local manufacturing, battery swapping, and infrastructure development, which are essential for market scalability. The combination of central and state-level support is creating a favorable ecosystem that benefits both manufacturers and buyers. This is also further prompting EV startups to launch electric two-wheelers in the country. For instance, the number of electric two-wheeler startups in India has surged from 54 in 2021 to over 150, driven by government initiatives to promote clean vehicles and reduce oil imports. Startups now hold seven of the top ten market positions, with Ola Electric leading at a 39% market share as of January 2024. As policy consistency improves and additional reforms are introduced, the overall adoption rate is expected to accelerate significantly. This ongoing policy-driven momentum remains one of the primary forces enabling a rapid transition from ICE to electric mobility in India.

Rising Fuel Costs

Volatility in global crude oil prices and rising domestic fuel rates are pushing Indian consumers toward electric mobility alternatives. Two-wheelers powered by petrol have become increasingly expensive to operate on a daily basis, especially for middle- and lower-income users who rely heavily on personal transport for commuting. In contrast, electric two-wheelers offer lower running costs due to minimal electricity expenses and fewer maintenance requirements. The difference in operational cost becomes more apparent over time, making EVs a financially attractive option. As the average urban commuter seeks cost-effective mobility, electric scooters and bikes are gaining traction as a long-term economical solution. Rising fuel prices are not expected to stabilize in the near term, further encouraging the shift to electric.

Urban Congestion and Micro-Mobility Needs

The growing density of urban populations and traffic congestion have increased the demand for compact, efficient, and agile mobility solutions. Electric two-wheelers fit this requirement perfectly, offering smooth performance, silent operation, and zero tailpipe emissions. Their suitability for short commutes and easy maneuverability through traffic make them highly preferred among daily office-goers and delivery personnel. Urban transport trends are shifting toward personalized, clean alternatives that do not contribute to pollution or noise. Electric scooters, in particular, are filling the gap left by traditional vehicles in congested areas. Leading companies are also introducing affordable options for commuters, for instance, in May 2025, Hero MotoCorp announced that it will introduce two new affordable electric vehicles in the Indian market. These EVs are expected to be positioned for entry-level buyers with value-for-money features. The company plans to support the launch with expanded service networks. This rollout is part of Hero’s broader EV expansion roadmap. As smart cities expand and urban infrastructure evolves, the demand for micro-mobility solutions will continue to benefit electric two-wheeler adoption.

Expanding Charging Infrastructure

India’s charging infrastructure is improving steadily through public-private partnerships and government-backed programs. Investments in fast-charging networks, battery swapping stations, and integrated energy management are reducing range anxiety among consumers. New business models, such as franchise-based charging networks and app-based access to chargers, are contributing to convenience and reliability. As more charging points become available in public spaces, offices, residential complexes, and commercial hubs, electric two-wheelers become more viable for both urban and semi-urban usage. This infrastructure expansion is critical in fostering consumer trust and enabling mass adoption. It also opens opportunities for innovative business models, including energy-as-a-service and mobile charging units.

Technology Advancements in Battery and Motor Efficiency

Significant strides in battery technology, especially the development of high-energy-density lithium-ion batteries and solid-state options, are enhancing the range and efficiency of electric two-wheelers. Motors are becoming more compact and powerful, while integrated battery management systems improve overall performance. These improvements enable manufacturers to produce lighter, faster, and longer-lasting vehicles with greater cost-effectiveness. Smart features such as regenerative braking, ride analytics, GPS tracking, and app connectivity are being integrated, enriching the user experience. The declining cost per kWh and domestic battery cell manufacturing initiatives are further fueling market viability. The synergy of innovation and indigenization is shaping the next phase of growth.

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Market Challenges

Range Anxiety and Charging Limitations

One of the most persistent consumer concerns is range anxiety, particularly in regions where charging infrastructure is underdeveloped or unreliable. Many potential buyers hesitate to shift from ICE vehicles due to uncertainty about how far they can travel on a single charge. The limited number of fast-charging stations and longer charging times also reduce convenience. In urban areas, lack of access to private parking spaces with charging provisions can further complicate usage. These constraints make electric two-wheelers less appealing for long-distance or frequent travelers. Overcoming range anxiety will require both technological breakthroughs and rapid expansion of accessible, efficient charging solutions across India.

High Initial Purchase Cost

Despite long-term savings, electric two-wheelers often have a higher upfront cost compared to their petrol-powered counterparts. Battery systems, which account for a significant share of the cost, remain expensive despite subsidies. While prices are declining gradually, the initial investment remains a barrier for price-sensitive segments. This is especially relevant in semi-urban and rural markets where affordability drives decision-making. Even within urban populations, many consumers opt for conventional options due to budget limitations. Financing options and loan availability for EVs are improving but still fall short in reach and flexibility. The perception of high costs continues to challenge mass market adoption.

Limited Product Diversity

The electric two-wheeler market in India lacks diversity in terms of performance, design, and usage range. Most available models are limited to low-speed scooters meant for city use, restricting consumer choices. The absence of feature-rich motorcycles or vehicles catering to long-distance or rugged terrain users limits market penetration beyond specific demographics. Customers seeking high-performance, stylish, or sport-oriented EVs often find few viable options. This limited variety affects brand perception and appeal. The market needs expanded product portfolios catering to a broader range of lifestyles and mobility needs. Without such diversity, the potential for widespread adoption remains constrained.

Battery Lifecycle and Recycling Issues

Battery degradation over time affects vehicle performance, resale value, and overall consumer satisfaction. Users often lack clear understanding of battery lifecycle, replacement costs, or second-life applications. There is also insufficient infrastructure for safe battery disposal or recycling in India, raising environmental concerns. This results in hesitancy among buyers, especially regarding long-term ownership. End-of-life battery management policies are still developing, and there is limited public awareness on sustainable practices. The lack of standardized protocols for battery reusability and recycling adds to uncertainty. Creating a circular battery economy is essential to address this challenge in a scalable way.

Key Market Trends

Battery Swapping and Subscription Models

Battery swapping is emerging as a practical solution to address long charging times and range concerns. It allows users to replace depleted batteries at designated stations within minutes, improving operational uptime. This trend is particularly appealing for commercial fleet operators and delivery services, where vehicle availability is critical. Battery-as-a-Service (BaaS) and subscription-based models reduce the upfront cost by decoupling the battery from vehicle ownership. Users can pay a fixed monthly fee for energy usage while manufacturers handle battery maintenance and replacement. This model also enables centralized control over battery health and recycling. Swapping networks are being built in urban hubs with growing demand. The success of this trend will depend on standardization of battery sizes, expansion of swap stations, and coordination among OEMs, energy providers, and infrastructure players. It holds promise for transforming electric two-wheeler economics in India.

Focus on Lightweight and Modular Design

Electric two-wheelers are increasingly being designed for modularity and lightweight construction. Lightweight frames improve energy efficiency and allow better handling, especially in congested traffic. Modular architecture supports easier maintenance, custom part replacement, and future upgrades. This design approach benefits both end users and manufacturers by lowering production costs and improving vehicle lifespan. It also facilitates flexibility in adapting products to various use cases—from delivery to personal commuting—without major design overhauls. Use of composite materials and aerodynamic styling further enhances performance and range. Startups and established players alike are embracing modular design to speed up innovation cycles. This trend supports mass customization and aligns with the evolving expectations of Indian EV users who seek a balance between performance, affordability, and sustainability.

Rise of Purpose-Built EVs for Delivery and Commuting

The growing gig economy and last-mile delivery sector are fueling demand for electric two-wheelers tailored specifically for commercial use. Purpose-built EVs come with features like reinforced frames, cargo storage, dual battery setups, and connected fleet management systems. These vehicles are optimized for durability, payload efficiency, and cost-effectiveness. Logistics and e-commerce companies are rapidly electrifying their delivery fleets to meet sustainability goals and reduce fuel dependency. This segment’s growth has inspired OEMs to co-develop products with fleet operators, based on operational feedback and data analytics. Custom-built solutions enhance reliability and return on investment. With increasing pressure to adopt green logistics, purpose-built electric two-wheelers are emerging as a key subsegment within the market. Their impact is reshaping EV design and business models around high-utilization transport scenarios.

Local Manufacturing and PLI Scheme Implementation

The Indian government’s Production-Linked Incentive (PLI) scheme for advanced chemistry cells and EV components is encouraging local manufacturing. This is boosting self-reliance and reducing import dependency on critical parts such as battery cells and power electronics. As domestic production scales up, the cost of components is expected to decline, making electric two-wheelers more affordable. Companies are investing in indigenous research and development, component localization, and setting up gigafactories for battery manufacturing. Local supply chains are being strengthened through strategic partnerships and vendor development programs. This trend is crucial for building a resilient and competitive EV industry in India. It also supports job creation, technology transfer, and innovation in clean mobility. As the ecosystem matures, India could emerge as a key manufacturing hub for electric two-wheelers in the Asia-Pacific region.

Segmental Insights

Vehicle Insights

India’s electric two-wheeler market is segmented into scooters/mopeds and motorcycles, with both segments evolving to cater to distinct consumer needs. Scooters and mopeds have traditionally been the frontrunners in adoption due to their simple mechanics, easy operability, and suitability for short-distance urban commuting. Their compact build, lightweight design, and low-speed configurations make them ideal for congested city environments, where users prioritize convenience over performance. Most scooters come with fixed or swappable batteries, user-friendly controls, and sufficient boot space, making them appealing to working professionals, students, and delivery personnel. Mopeds, though more niche, attract cost-conscious consumers seeking budget-friendly transportation options with minimal maintenance requirements.

Electric motorcycles, in contrast, are gaining traction among consumers who prioritize performance, range, and aesthetic appeal. These vehicles are being designed with higher battery capacity, advanced motor systems, and features that appeal to daily commuters and enthusiasts alike. While the motorcycle segment is still evolving, it is experiencing innovation in terms of speed, torque, and battery technology. The introduction of motorcycles with faster acceleration, longer riding range, and enhanced connectivity is expanding the customer base beyond entry-level users. Riders looking for stronger road presence, adventure usability, and superior design elements are increasingly exploring this segment. Technological advancement is also playing a key role in transforming electric motorcycles into practical alternatives for mid- to long-distance travel.

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Regional Insights

In 2025, the southern region of India emerged as the dominant hub for electric two-wheeler adoption and activity. States like Karnataka, Tamil Nadu, and Telangana played a central role in driving both demand and supply through favorable policies, infrastructure development, and active industry participation. Urban centers such as Bengaluru, Chennai, and Hyderabad became focal points for electric mobility due to their progressive state-level EV policies, well-established startup ecosystems, and concentration of tech-savvy consumers. These cities benefited from early investments in charging infrastructure, availability of skilled workforce, and active engagement between government bodies and private players. The region’s support for local manufacturing through industrial clusters and incentive-driven policies encouraged electric two-wheeler companies to set up assembly lines and R&D facilities.

The southern region’s strength also lies in its high rate of urbanization and rising awareness of sustainable transport solutions. Consumers in these markets have shown greater acceptance of alternative mobility options and are more responsive to innovations such as battery swapping, subscription models, and digital connectivity in vehicles. Delivery companies, fleet operators, and gig economy workers have widely adopted electric two-wheelers for intra-city logistics, aided by better road infrastructure and reliable charging networks. The presence of robust public-private partnerships enabled the development of battery testing labs, EV training centers, and ecosystem accelerators, further strengthening the region’s leadership position.

Recent Developments

• In May 2025, Suzuki announced the upcoming launch of its first electric scooter, the e-Access, in India. The scooter is expected to be priced between ₹1.20 lakh and ₹1.30 lakh. It is being developed at Suzuki’s manufacturing facility in Haryana. The launch is aimed at strengthening the brand’s presence in India’s growing electric two-wheeler segment.
• In May 2025, Oben Electric revealed plans to launch an electric motorcycle priced under ₹1 lakh. The new model is expected to target budget-conscious customers while offering smart features and practical commuting range. This move aligns with Oben’s strategy to broaden its product base. The company aims to accelerate mass-market EV adoption through affordability.
• In May 2025, Hero MotoCorp announced that it will introduce two new affordable electric vehicles in the Indian market. These EVs are expected to be positioned for entry-level buyers with value-for-money features. The company plans to support the launch with expanded service networks. This rollout is part of Hero’s broader EV expansion roadmap.
• In April 2025, Yamaha announced its intention to launch an electric two-wheeler in India within a year. The company is working on adapting its global EV technology for Indian roads and users. Product testing is currently underway to ensure market fit. This marks Yamaha’s entry into India’s rapidly expanding electric mobility space.
• In March 2025, Ultraviolette confirmed the launch of a new electric two-wheeler lineup aimed at expanding its product range. The upcoming models are expected to feature high-performance specifications and advanced connectivity features. The launch will cater to both urban and performance-focused riders. This initiative supports Ultraviolette’s scale-up in India’s premium EV market.

Key Market Players

• Hero Electric Vehicles Pvt. Ltd
• Okinawa Autotech International Private Limited
• Greaves Electric Mobility Private Limited
• Ather Energy Limited
• PuR Energy Pvt. Ltd
• Ola Electric Mobility Ltd
• TVS Motor Company
• Revolt Intellicorp Private Limited
• BENLING INDIA ENERGY AND TECHNOLOGY PVT LTD
• Bajaj Auto Ltd

Report Scope:

In this report, the India Electric Two-Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•         India Electric Two-Wheeler Market, By Range:

o    50–100 Km

o    101–150 Km

o    Less than 50 Km

o    Above 150 Km

•         India Electric Two-Wheeler Market, By Battery Capacity:

o    <25 Ah

o    >25 Ah

•         India Electric Two-Wheeler Market, By Battery:

o    Lead Acid

o    Li-ion

•         India Electric Two-Wheeler Market, By Vehicle:

o    Scooter/Mopeds

o    Motorcycle

•         India Electric Two-Wheeler Market, By Country:

o    East India

o    West India

o    North India

o    South India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Electric Two-Wheeler Market.

Available Customizations:

India Electric Two-Wheeler Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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