A new report released by strategy consulting firm, Redseer Strategy Consultants, indicates that sales penetration of Electric Two Wheelers (E2W) is expected to increase by 78 percent by 2030.
The report has taken into consideration factors like new government policies, technology, infrastructure and consumer acceptance.
Released on Friday, the report suggests that the top reasons for choosing electric two-wheelers include better features (such as interactive dashboards, connectivity, and driving features), and superior economics (running cost and price).
People are also opting for EVs because it is more environment-friendly and offers better performance (instant acceleration).
Lower cost of ownership
Electric two-wheeler users have experienced that in comparison to traditional internal combustion engine (ICE) vehicles, the cost-of-ownership for electric two wheelers is anywhere between 20% to 70% less, with the cost savings increasing with increased usage.
“Interestingly, the negligible need for maintenance and minimal fuel costs is also attracting business to business players to explore Electric Two-Wheeler adoption as a clean mode of commercial operations. While over 150 E2W players exist, the market is dominated by the top nine players,” said Mukesh Kumar, Engagement Manager at Redseer Strategy Consultants.
But the EV route is not without its roadblocks.
“Although emerging strongly, it is not without its challenges – long charging time and poor charging infrastructure are the two main pain points for both users and non-users. However, because of government incentives and growth in the segment, several startups along with government bodies are building a better charging infrastructure in India,” Kumar added.
India currently has 3,000 EV charging stations, with six charging stations available per 1000 EVs.