Over the past few years, India has seen a tremendous growth in electric two-wheeler sales. EV sales in the nation for the year 2021 witnessed a staggering 132% increase, showcasing the sector’s potential for performance in 2022. The switch to EVs has been incentivised further by beneficial Government subsidiaries for the manufacturers and consumers. The Indian electric scooter market is projected to grow at a CAGR of 35% from 2022-2028, with more citizens choosing zero-emission vehicles for daily commutes. The constantly rising fuel prices also serve as a catalyst in this electronic revolution witnessed by the nation. Here are 5 primary reasons behind the surging electric scooter market in India:
1) Establishment of new charging points
The central and state governments and EV manufacturers have heavily invested in creating an electric vehicle charging infrastructure to support India’s transition to electric mobility. An accessible electric vehicle charging network is the backbone of the expanding electric vehicle growth. There are over 1640 EV charging stations in India, and the government is collaborating with private players, urban authorities, and public agencies to set up several more charging stations. Oil marketing companies have also announced the creation of charging stations on national highways. This will allow easy accessibility of charging facilities to EV consumers and propel EV sales growth further.
EV manufacturers are also considering alternative charging methods, such as battery swapping, to reduce the time taken for EV recharging.
2) Launch of new and innovative products
EV manufacturers are enticing consumers by launching new variants and improved versions of their previous models with better performance and features. Electric scooters have features like a touchscreen, navigation assist, voice control, e-sims, ride modes, etc., to make them appealing to the younger audience. The newer versions are loaded with even more features like increased range, parking assist, USB-charging ports, call assists, and music players. Such features have made electric scooters the preferable mode of transport over traditional ICE scooters.
3) Growth in small mobility startups
Emerging new players in the electric scooter market have impressed consumer fields by launching models on-par with industry giants. There are about 250 Indian start-ups manufacturing high-quality electric scooters and bikes. Indian EV startups have played a pivotal role in the rise of the EV market. This is due to the untapped potential of the EV market being explored now.
4) Government initiatives
According to a survey by WHO, one of India’s leading causes of death and respiratory damage was poor air quality. The Government Of India launched several schemes like FAME 1 and FAME 2, which benefitted both the manufacturer and consumer with tax reductions and other price reductions, heavily incentivising the purchase of EV scooters. The Government of India also launched a “Go Electric” campaign in 2021 to spread awareness of the benefits of electric vehicles.
5) Environment-friendly
The global outcry for protecting the environment and energy conservation is a major contributing factor to the development of EVs that offer a greener future for humanity. Electric vehicles are considered an effective way to improve air quality. EVs are 97% cleaner than their IC counterparts and do not produce any harmful emissions. India, the third-largest energy consumer after the US and China, is actively promoting a cleaner and greener environment.
Conclusion:
The overall trend in the scooter market heavily favours electric scooters over traditional ICE scooters. Major companies do not hold a monopoly in the market share, with the aggressive competition against EV start up’s. The consumer’s changing mindset is also a factor in the growth of the electric scooter sector. Maharashtra has the highest number of EVs, with several electric scooter manufacturers in Pune bringing out new and innovative products.
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