The e-bike market adoption rate in India soared by 39%, from 4.05% in 2022 to 5.63% in May this year, according to government data.
Notably, states including Goa, Kerala, Karnataka, and Maharashtra, alongside 6 others, surpassed the national average of 5.63% adoption rate, with Goa topping the list at 17.2%, according to registration data from Vahan, a central government vehicle portal.
The top 4 states exceeded a 10% market growth rate, a significant jump from the 1% recorded in 2019. India has set a target for electric vehicles (EVs) to constitute 80% of its two-wheeled market by 2030. In addition to central government subsidies, various states have implemented favourable policies including tax benefits, efficient scrappage programmes, lower power tariffs, and expanded charging infrastructure, contributing to the industry’s growth.
EV industry growth in India
Despite representing a relatively small portion of the overall two-wheeled sales, with 392,681 electric units sold out of 6.98 million by May 2023, the growth it represents is evident. The Society of Manufacturers of Electric Vehicles reported that sales of electric two-wheelers in India rose to 846,976 units in 2022-23’s fiscal year, a two-and-a-half-fold increase from the previous year’s 327,900 units.
Bain & Company stated in December 2022 that two and three-wheeled transportation will be the frontrunners in EV adoption, projecting a 40-45% market penetration rate by 2030.