Forecast Period
|
2027-2031
|
Market Size (2025)
|
USD 785.81 million
|
CAGR (2026-2031)
|
26.54%
|
Fastest Growing Segment
|
Scooter/ Moped
|
Largest Market
|
South
|
Market Size (2031)
|
USD 3226.16 million
|
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
By Range
|
By Battery
Capacity
|
By Battery
|
By
Vehicle
|
By
Region
|
- 50–100 Km
- 101–150 Km
- Less than 50 Km
- Above 150 Km
|
|
|
|
- East India
- West India
- North India
- South India
|
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
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and profiling of additional market players (up to five).
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Two-Wheeler Market is an upcoming report to be released soon. If you wish an
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