Source: Autocar Professional Image source: Sounak Mukherjee, Unsplash

The electric micromobility sector in India is flourishing, and it is estimated that by 2030 it could be one of the world’s largest markets for the industry. A combination of economic drivers, infrastructure development, and policies are among key factors facilitating the growth.

The transition to electric two- and three-wheeled micromobility options in India is mainly being driven by workers for whom mobility is integral to their livelihoods – delivery riders, small traders, and informal workers. This is a contrast to the landscape in Europe, where micromobility uptake can be seen as being driven by urban mobility and connectivity.

Economic factors

At the heart of the transition is a shift in the Total Cost of Ownership (TCO) of vehicles, which is of paramount importance to the estimated 15 million workers in India’s gig economy (projected to reach 23.5 million by 2030).

Electric variants of mopeds or motorcycles represent a significant 40-50% lower TCO compared to ICE models, over a three-year ownership period. For those using the vehicle as an integral tool for their work, this is the difference between merely subsisting, and the ability to save money. Some industry observations suggest that those working in delivery and logistics who transition from ICE to electric models – especially those compatible with swift and convenient battery-swapping services – can increase their monthly take-home income by almost 20%.

Market size and infrastructure

Working on the assumption that electric models account for 25-30% of the Indian two-wheeler market by 2030, industry forecasts show that annual electric two-wheeler sales would amount to 6.5-9 million units.

This national fleet would need effective supporting infrastructure, estimated at 2.5 million public charging and battery-swapping touchpoints across the country, and necessitating a parallel sector in energy services, with new jobs arising in the “green-collar” workforce. This would include roles from fleet management and swap-station operations, to more high-tech R&D specialisms, with many more in between. As Nagesh Basavanhalli writes, “micromobility could become a rare industrial sector that simultaneously drives decarbonisation, employment, and skills upgrading.”

Battery-swapping has become the preferred choice in India’s delivery and logistics sectors, where minimised downtime and optimised TCO are crucial. Industry estimates point to over 300,000 swaps on a daily basis, and fleet operators favour Battery-as-a-Service models which enable substantially lower operating costs compared to ICE fleets. With this model, the fleet owners can enjoy reduced upfront vehicle costs, leading to more efficient use of capital while speeding up the electrification of fleets.

The role of policies

It is noted that India presents a contrast to China, where the boom in electric micromobility has been primarily mandate-driven, alongside large-scale manufacturing capability and strong regulations. In India, the uptake of electric two-wheelers has been supported by a framework of positive policies which offer incentives for adoption, which have appeal for the cost-conscious users described above. A continued positive policy framework, which aligns with industry stakeholders, will be essential in maintaining the country’s momentum in micromobility expansion.