LEGACY CHALLENGED

India's electric two-wheeler market is no longer a niche segment, but a battleground for both start-ups and legacy players

- ASTHA ORIEL

IN A MARKET that once used to be dominated by legacy two-wheeler companies, home-grown electric two-wheeler start-up Ather Energy became a unicorn last year, a move that re-shaped India's electric vehicle (EV) landscape.

The growth seen in the electric two-wheeler category last year testifies that it's no longer a niche segment, but a battleground for both start-ups and legacy players alike. The recently concluded Bharat Mobility Global Expo showcased this shift, proving that electric scooters are leading India's EV transformation.

According to data from road and transport ministry's Vahan portal, India's EV sales in CY24 stood at 1.95 million units compared to 1.53 million units in 2023. Of this, the electric two-wheeler sales stood at 1.15 million units in CY24, a 33% year-on-year growth from 860,418 units in CY23.

Growth in electric two-wheeler sales was driven by a policy push towards charging as well as an improved consumer sentiment. Multiple players entered the segment by launching products at affordable prices. Discounting by some electric two-wheeler players, such as Ola Electric and Ather Energy, as well as expansion by twowheeler manufacturers in Tier II and Tier III cities, further provided a boost to electric two-wheeler sales.