E-two-wheeler retail sales reached their second-best monthly performance, only missing March’s 140,333 units, thanks to festive season demand and alluring OEM discounts. While Ola has recovered to levels above 41,000, TVS and Bajaj are still engaged in a fierce war.
This segment all set to reach a million sales for the first time in a calendar year in November, as the top six OEMs each surpass their CY2023 retails in the first 10 months of 2024.
What Spiked the Sales of EV 2Wheeler?
In spite of the reduced subsidy, the buyer-friendly festive season schemes, attractive deals offered by e-two-wheeler OEMs, and the availability of customised financing, retail sales were the second-highest in this calendar year to date, following the FAME II subsidy-ending month of March 2024 (140,333 units). The new PM E-Drive Scheme went into effect on October 1. The PM E-Drive Scheme aims to assist 24.79 lakh e-two-wheelers, 316,000 e-three-wheelers, and 14,028 electric buses with an expenditure of INR 10,900 crore over two years and subsidy/demand incentives of INR 3,679 crore. The PM E-Drive Scheme, which runs from October 1, 2024, to March 31, 2026, does not apply to passenger cars.
The largest volume driver of the Indian EV market is the electric two-wheeler market. According to the most recent data accessible on the Vahan websites of the Indian government, it made up 64% of India EV Inc.’s total volumes of 217,621 units in October.
Ola Electric Back in Form
Ola Electric will be relieved that it sold 41,605 units in October 2024, following two turbulent months of low sales of fewer than 28,000 units (August: 27,615 and September: 24,716), which caused the company’s market share to drop to less than 30%. This represents a 74% YoY gain and a 68% month-over-month increase. Additionally, the company has sold an additional 96,885 units through the end of October, surpassing its total CY2024 retail sales of 267,376 units.
Ola experienced a strong month-over-month growth from April through July until the steep decline in August and September. The company had started CY2024 with 32,424 units (up 77%) in January and reached a peak of 53,640 units (up 150%) in March. Numerous complaints from customers regarding poor service were blamed for Ola’s August and September sales drop. However, sales have increased in October after the recently listed business promised that it has satisfactorily resolved 99.1% of consumer concerns through its redressal procedure.
TVS Regaining its Spot by Taking Over Bajaj
In October, TVS Motor Co. reclaimed the second position on the e-two-wheeler podium after being hurt by Bajaj Auto’s September takeover. The iQube producer saw a robust 81% YoY rise with retail sales of 29,890 units (October 2023: 16,507 units), and last month’s market share was 21%. TVS’s market share for the first ten months of this year is 18.41%.
The effort paid off, as TVS Motor’s October retails are its greatest monthly numbers to date. Like Bajaj Auto, TVS Motor sent the most iQubes to its dealers in October, totalling 28,564 units.
These two legacy OEMs are still engaged in a fierce struggle; in CY2023, TVS sold 166,581 iQubes, which was 94,641 more than Bajaj Auto’s 71,940 Chetaks. In the current calendar year, such an enormous disparity has significantly decreased to 27,164 units.
Three battery options are available for the TVS iQube: 2.2 kWh, 3.4 kWh, and 5.1 kWh. The business reports that the market is responding favourably to the complete portfolio. With a 2.2kWh battery, the standard model can travel 75km in real life and takes two hours to fully charge using a 950W charger. At INR 94,999, this base version of iQube is now the most economical. This model comes with a 5-inch TFT display, turn-by-turn navigation, and theft and tow alarms, along with the 3.4 kWh iQube.
After a trailblazing performance in 2023, India’s electric mobility is set to be the hero performer yet again in 2024, even amid global slowdown worries and job cuts. However, the rush for EV vehicles has thrown open a new set of challenges for the sector. EV companies, component manufacturers, and researchers that StartupTalky spoke with list out some of the roadblocks that lay ahead.
While India’s EV makers have been experiencing roaring sales, the shortage of EV charging infrastructure is not only creating a gap for easier mobility but also stopping several potential EV owners. Be it non-functional charging stations or cars running out of charge and coming to a standstill, addressing EV charging issues has become detrimental to the further growth of the sector.
“The Indian government’s ambitious plans, coupled with private sector participation, are accelerating the deployment of charging infrastructure, thereby addressing one of the key challenges in EV adoption,” said Rohan Shravan, founder and CEO of Tresa Motors.
In July 2023, the Confederation of Indian Industries called for a dire need to increase the number of charging stations to meet the demand for transitioning to electrification of vehicles in the coming years. This would eventually lead to 1.32 million charging stations by 2030, the report said.
“At present, about 40% of total installed capacity in India is renewable energy based. On the other hand, the grid infrastructure is aging, and the power demand from electric vehicles has already started straining the grid,” said Akanksha Goluchha, lead – clean energy and e-mobility at the National Resource Defense Council’s India branch.
NRDC is a cohort of leading online activists, scientists, lawyers, and other environmental specialists to help the world confront the climate crisis.
“Intelligent charging solutions that include smart grids, smart meters, smart charging systems, wireless sensors, etc. can help schedule EV charging based on periods of high renewable energy generation,” Goluchha added.
The government-initiated National Highways for Electric Vehicles plans to electrify 5,500 kilometers of existing highways across 23 cities and 12 states.
India Electric Vehicle Market Size, 2022 to 2032
Sourcing and Recycling of EV Batteries
EVs rely primarily on lithium-ion batteries, which contain specific metals and minerals. As of now, India sources most of the EV battery components from China, which in turn makes it costlier by the time the EV hits the showroom.
To reduce India’s reliance on imports amid rising demand for EVs, Finance Minister Nirmala Seetharaman in her 2023–24 Union Budget exempted customs duty on capital goods and machinery needed to manufacture lithium-ion cells locally.
“Indian-manufactured cells are expected to be launched in 2024, this development will help reduce the cost of batteries, creating opportunities for unit profitability and, subsequently, price reductions for consumers,” said Sumeru Shah, Business Head, EV Two-Wheeler at Ecofy.
However, to make optimum use of the minerals stashed inside the batteries, India also needs better management of the retired battery cells.
“How do you dispose of these batteries when they’re consumed in volumes like today? Today, we’ve got all these cars being crushed, and the metal from cars being reused. So there’s a lot of sustainability that happens today. But with electric vehicles, that’s still a challenge. How do you dispose of the batteries? The batteries that we use for our torches, our cell phones… how do we sort of dispose of them in a manner that it’s sustainable and doesn’t damage Mother Earth?,” said Anil Kempanna, Chief Executive Officer at Cientra, which offers solutions across semiconductors, embedded software, automotive, and telecom sectors.
Co-founder of electric bicycle company E Motorad, Sumedh Battewar, points to recycling batteries as an effective way to source battery components.
“The key solution to this is recycling and reuse. Today, this chain is broken. Today, even if a cell is short, I have no use for it; I have to throw it out. I believe that, with time, an ecosystem will get built up. Because this (recycling of batteries) has a lot of value where a business can be built,” Battewar said.
For India to successfully transition to clean mobility, trucks, and vehicles will play a key role in the transport electrification revolution.
“Almost 90% of our emissions from the transport sector come from road transport. And if you zoom down to the road transport sector as well, almost 10–15% is coming from trucks. So trucks have a direct relationship, so we have to look into these kinds of aspects to assess how we are going to decarbonize the sector as a whole,” said Narayankumar Sreekumar, Associate Director at Shakti Sustainable Energy Foundation.
In September 2022, India’s think tank, NITI Aayog, along with RMI, released a report – ‘Transforming Trucking in India’. The joint report pegged India’s trucks to more than quadruple, from 4 million in 2022 to roughly 17 million trucks by 2050.
Among a host of measures suggested by the report, one of them involved moving towards zero-emission trucks.
“Zero-emissions trucks (ZETs), including battery electric trucks (BETs) and fuel cell electric trucks (FCETs), offer a compelling alternative to the diesel trucks that dominate India’s road freight today. ZETs do not have tailpipe emissions and have lower operating costs, presenting an opportunity for India to showcase how the adoption of ZETs is economically efficient and better for air quality, public health, and the environment,” the report said.
Funding
Being a capital-intensive sector, any funds flowing into EV companies can come as a reprieve.
“In the coming year, 2024, we eagerly seek funding partners to propel our innovations to the next stage, marking another chapter in our journey towards revolutionary advancements,” said Bharath Anantha Srinivas, the CEO of Technovos Machinery Private Limited, a provider of sustainable commercial materials movement equipment.
It’s no surprise, then, that EV sector investments are on the rise.
Perpetuity Capital, a fintech company offering loans to EVs, and Mufin Green Finance plan to invest in 1,000 EV companies in India this financial year.
According to media reports, EV funding in 2023 reached a record of $169.4 million, up 79% year over year. However, for a sector that is touted to grow at a rapid pace, funding requirements also need to be commensurate.
“Going forward, India needs significant investor support to realize the $100+ billion EV opportunity. As the landscape evolves, investors need to evaluate potential assets based on five criteria: sustainable competitive advantage, GTM and distribution capabilities, customer feedback and brand perception, talent and culture, and manufacturing and supply chain strategy,” said a report by Bain & Company.
Attracting a Talent Pool
Skilling talent to meet the rising demand from the EV segment poses the next big challenge for the sector.
Speaking at the EV Expo in December, Minister of Road Transport and Highways Nitin Gadkari said India is likely to see over five crore jobs in the EV sector by the end of this decade.
A report by staffing and HR solutions company Adecco showed that, among other sectors, the EV segment has been hiring the fastest in the last five years.
“Upskilling and reskilling will be crucial for the electric vehicle (EV) industry. Our initial efforts are primarily focused on upskilling rather than skilling new people, where we are interacting with numerous academic institutions, colleges, and polytechnics. They have requested our assistance in terms of helping them upgrade the curriculum and plug in the credentials and National Occupational Standards (NOS),” Arindam Lahiri, CEO of the Automotive Skills Development Council (ASDC), said in an interview with the National Skills Network.
Conclusion
While the EV segment is all set to be the showstopper in this decade, easing some of the challenges, such as recycling batteries, smoothening infrastructure roadblocks, funding the sector, and upskilling talent, could ensure that India’s sustainable mobility sector turns into a force to reckon with.
As we all know, two-wheelers constitute a considerable part of the Indian motor vehicle ecosystem and are an integral mode of transportation in some regions. Though two-wheelers have been around since the early 20th century, it is only a decade old that they have started to make their way into the daily lives of millions of Indians.
The number and types of two-wheelers available in India have expanded to include scooters, motorcycles, mopeds, and motorcycles that are mostly fuel-driven. On the other hand, there is a relatively small but fast-growing segment of electric two-wheelers, also known as e-two-wheelers.
These are gaining popularity and have been making headlines due to the apparent benefits they bring with them. But how long will these e-two-wheeler companies sustain? Well, this must be a question that every potential buyer has in his mind when he or she decides to buy one.
In the recent past, though, India has made it clear that they want nothing less than 7 million EVs on their roads by 2030. This seems like a tall order, and India will have to exert a lot of effort towards making it possible. Let’s check out what Indian Electric Two-Wheeler Industry looks like and is it able to survive;
The electric two-wheeler industry has been growing steadily over the last few years, but it still remains a niche market. The first electric scooter was introduced in 2013 by a startup called Ather Energy, and since then, there has been no looking back.
The company sold 1,000 units of its Thunderbird in 2016 and manufactured over 3,000 units of this model in 2017. The company also plans to launch an electric motorcycle in the next couple of years and plans to sell around 100,000 units of this model. This is just one of many brands that have begun manufacturing electric two-wheelers in India.
The electric two-wheeler industry is at its nascent stage in India. The Government has recently announced a plan to make all vehicles driven by electricity by 2030.
Support by the Government
The electric two-wheeler industry has been the center of attention for quite some time. The main reason for this is the rising pollution and the need to reduce it. The move toward electric vehicles is a step in the right direction. However, many factors need to be taken into account before making a decision on which vehicle to buy.
It has been announced that the Indian Government will invest $60 billion in electric vehicle production by 2025 as part of their “Make in India” campaign. This is expected to boost sales by 50% over the next five years.
The number of electric two-wheelers sold per month has steadily increased since 2013, when they first hit the market, with only 1,000 units being sold that year. Still, this figure has now climbed to over 20,000 units per month, according to recent reports published by SIAM (Society of Indian Automobile Manufacturers).
The Indian Government aggressively pushes the electric vehicle (EV) agenda to reduce pollution and boost green energy. It plans to achieve the target of 100% electric mobility by 2030. The Government has also announced several incentives, such as reduced GST and better infrastructure for EVs, among others.
The industry is still at its nascent stage in India, and the demand for electric two-wheelers is mainly driven by e-commerce companies like Flipkart, Amazon, etc. However, growth in demand for electric vehicles has been slow due to poor infrastructure, lack of awareness, high cost, and customer preference toward conventional bikes over electric bikes.
Growth of Electric Two-Wheeler Companies in India
Electric two-wheelers are gaining momentum in the Indian market. Several companies have entered the electric two-wheeler segment in the last two years. These include Hero Electric, Ather Energy, Zoomcar, Ola Electric and TVS Motor Company.
Some of these companies have already launched their products, and some others are about to launch them soon. This has led to increased competition in the industry which will benefit customers in terms of better products at lower prices. However, there are still some challenges that these companies need to overcome before they become profitable entities.
What Is Propelling the Growth of Electric Two-Wheelers?
Electric two-wheelers are a relatively new concept in India. The idea is not new, though, with countries like China have been using electric scooters and bikes for a few years now. Indian cities have been witnessing a surge in the number of people opting for public transport due to traffic congestion and pollution levels, which has led to the increased usage of electric vehicles.
The need for an alternative method of transportation has gained more importance than ever before. The number of people opting for electric two-wheelers as their primary mode of commute has grown manifold over the past few months, especially after the Delhi government announced its plan to buy 10,000 battery-operated bikes from BSF to be used by its security personnel.
The major factors driving this growth are:
Increase in disposable income
Government support and subsidies
Increasing awareness about pollution and climate change.
What Is Restricting the Growth of the Electric Two-Wheelers?
Electric two-wheelers are gaining popularity in India. The electric two-wheeler industry is anticipated to grow at a healthy pace in India and is expected to become a USD 3 billion market by 2025. However, some factors are restricting the growth of the industry in India:
High Manufacturing Cost
The manufacturing cost of an electric two-wheeler is high compared to conventional bikes due to the use of expensive lithium-ion batteries and other electronic components. The cost of manufacturing an electric scooter or bike is around USD 1,600 while manufacturing a conventional motorbike is around USD 500-600.
Experts believe that if the cost of raw materials used in making electric bikes comes down, then it can help reduce the overall manufacturing cost significantly.
Limited Availability of Charging Infrastructure
There is limited availability of charging stations for electric two-wheelers in India which will restrict their growth in the next few years unless considerable investments are made by manufacturers and government bodies to build charging infrastructure across cities and towns across India.
There were only about 1,000 charging points across India as of December 2018, which means that there is only one charging point per every 100 km, making it difficult for users to charge their batteries while commuting between cities or towns.
Low Battery Life
Another challenge facing this industry is that its batteries do not last long enough before they need charging again; often, they only last 10 kilometres or less before needing recharging again.
The Hype Surrounding the Two-Wheeler Industry
The hype surrounding the industry is more than just a marketing gimmick. The Government has been actively promoting the use of electric vehicles in India. The Government believes that if many commuters adopt these vehicles, it will help reduce pollution. It also hopes that this will lead to economic benefits by reducing fuel imports and improving job creation.
The Government has set up several incentives for such purchases to encourage people to make this switch. For example, buyers get an additional income tax deduction under Section 80EE of the Income Tax Act.
This gives them a deduction of Rs 1 lakh on an electric car and Rs 50,000 on an electric scooter or motorcycle. Thus, if you bought a new two-wheeler that costs over Rs 2 lakhs after March 31st, 2022, you can claim as much as Rs 50,000 as a deduction from your taxable income for each vehicle purchased during the financial year 2021-2022; this is double what you could claim in FY2020-2021.
Future Trends of the Two-Wheeler Industry
The electric two-wheeler industry is growing at a fast pace. Many companies are trying to come up with new products and services. The future trend of the electric two-wheeler industry is that it will continue to grow and become more popular in the future.
The following are some of the promising trends that can be expected in the next few years:
Increase in the Number of Electric Bikes
The number of electric bikes and scooters will increase in the coming years as more people are interested in them because they want to save money on fuel, reduce pollution, and many other reasons.
More People Will Use Electric Scooters or Bikes for Commuting Purposes
Commuting is one of the major drivers of why people are using electric scooters instead of cars or public transportation. They do not have to worry about intense traffic jams or finding parking spaces when they commute using an electric bike.
Increasing R&D Investments
The major players across the globe are investing millions of dollars in R&D activities to develop new technologies and improve existing ones. For instance, Shimano Inc., a Japan-based company, has focused on developing new products such as electronic shifting systems, road bikes, and mountain bikes since 1984. It also acquired Cannondale Bicycle Corporation in 1988, which provided it with an opportunity to strengthen its position as a leading player within the biking industry.
Steps That Should Be Taken to Sustain the Growth of the Two-Wheeler Industry
The Indian two-wheeler industry has been expanding at a healthy rate of around 20% year over year. This growth has been supported by increasing urbanization and increasing disposable income. A rising preference for automobile ownership is also driving the demand for two-wheelers. However, this growth may not be sustained in the long run if we do not take certain steps immediately.
The first step would be to improve the infrastructure of roads, highways, and other modes of transportation in India. As a result, this will significantly improve the movement of goods and people across cities and states, thereby creating job opportunities for millions of people.
The second step would be to create an environment conducive to innovation and research & development. This will ensure that new technologies are developed to help reduce pollution levels in our cities and towns.
Thirdly, we need to encourage the use of electric vehicles (EVs) as they can play an important role in reducing pollution levels in our cities and towns, as well as bring down costs associated with transportation systems due to reduced maintenance costs on EVs compared with conventional internal combustion engine vehicles (ICEVs).
India needs to focus its attention on developing a strong manufacturing base for electric two-wheelers. If we develop that, then the market will indeed thrive…
The electric two-wheeler industry has a realistic chance for growth in India. The Government needs to foster the market through reduced taxes and incentives for manufacturers and suppliers of electric two-wheelers. This will allow more competition among manufacturers and easier access to parts by consumers. The Government should also focus on minimizing the cost of creating infrastructure that can support electric two-wheeled vehicles (i.e., charging stations, electricity reinforcement, etc.), as it will significantly impact the demand for such vehicles.
The market will quickly pick up, with the launch of new manufacturing facilities accelerating the transition from fossil fuels. One day, soon, we will see the day when switching to an e-bike or a car powered by electricity will be an easy choice for people in India and around the world.
FAQs
How many electric two-wheelers are there in India?
In 2021 there were nearly 1.4 lakh two-wheeler units were sold in India.
Which is the best electric two-wheeler in India?
Ola S1, Bajaj Chetak, TVS iQube, and Okinawa iPraise are some of the leading electric two-wheeler brands in India.
Which is the largest selling electric scooter in India?
Hero Electric is the largest selling scooter brand in India.
Electric Vehicles have created a huge sensation across the world. There are many companies trying to manufacture EVs which includes the reputed firms such as Mercedes Benz, BMW, Audi and even Apple have been said to release their own EV. However, Tesla coming to India had created a hype through the social media for a while but now the Triton EV which is a rival of Tesla has entered into India for setting up its manufacturing facility. In this article let’s look at whether Triton would be able to overpower Tesla.
The US based Electric Vehicle manufacturing company Triton which is a rival of Elon Musk’s Tesla has signed a Memorandum of understanding with the Government of Telangana to open its manufacturing facility. The state of the art manufacturing facility of Triton will be opened in the Zahirabad area of Telangana.
Triton Facility and Jobs in India
The manufacturing facility in India will be built over a million square feet area and is expected to create up to 24,000 jobs in the state. This was conveyed by the Triton EV and the Government of Telangana.
In a statement, the company has stated that in the span of the next 5 years, Triton EV will invest around USD 1.5 billion into the manufacturing facility set up in India. The first set of investments of around USD 300 million will be done in the coming few months.
The company is investing around INR 2,100 crore in order to establish an ultra modern vehicle manufacturing unit in Telangana. The project is set to provide employment to around 25,000 people and the company plans to produce around 50,000 vehicles in the first 5 years. The vehicles would include sedans, SUVs, semi-trucks and rickshaws.
Demand of Triton in India
The chairperson of Triton EV in India has said that the company already has orders worth USD 2.2 billion and also added that the Government of Telangana has provided the company with an order of 3000 EVs.
The semi-truck of Triton contains a battery pack of 300 kW and the truck has the capacity to provide a range of 550 km in a single recharge. The semi-truck has received orders from different automotive industries in India.
Another model of EV which is expected to release by Triton in India is the SUV segment. The Triton SUV model H, the model H SUV looks like a typical American model SUV and has a seating capacity of 8 members.
Triton SUV
The model H SUV has a range of 1,100 km in a single recharge and the EV would reach from 0-60 miles acceleration in less than 3 seconds. The battery pack of the SUV segment also has a hyper charging option which enables the recharge in just 2 hours. Other than the 8 passenger space, the SUV also has a cargo space of around 200 cubic feet.
The Triton EV gives a warranty of up to 10 years for their SUV segment which is not available to any other EV SUV in the market as of now.
The third model of EV that is expected to release is a Sedan model. The sedan model EV is named a model N4. The sedan has an option for short range and long range in which the short range has a km range of up to 540 and the battery would be around 75 kW.
For the long range the sedan model EV would provide a km range of 690 and has a battery of around 100 kW. In order to complete the recharge of up to 80%, the sedan model would take around 8 hours. The sunroof of the EV is made up of a transparent solar panel which helps in powering the on board electronics of the EV and the transparent solar panel helps in charging the N4 sedan as well.
Tesla VS Triton
Triton seems to have attractive EVs under their portfolio and Tesla is nowhere less, however, Tesla does not only sell Electric Vehicles they have a long list of portfolios under them. Moreover, the EVs or Tesla are considered to come under the luxury segment.
However, the move from Triton EV is expected to provide a huge competition to Tesla and we will have to look forward to see whether Triton EV will be able to overpower Elon Musk’s Tesla.
Conclusion
The Government of Telangana has stated that it would provide the required land for the manufacturing facility for Triton EV. The Government also said that it would provide the complete support for the company in order to acquire the necessary approvals for setting up the facility.
FAQ
Who is the founder of Triton EV?
Himanshu Patel is the founder of Triton EV.
Is Triton EV launching in India?
Yes, Triton EV will be launching in India and its first manufacturing plant will be set up in state of Telangana.
Himangi Khare
