Over the years, there has been a noticeable increase in the market’s sales of two-wheelers. This might be because of the price and convenience that this kind of vehicle provides. The electric two-wheeler has recently been introduced with a more eco-friendly and environmentally sustainable makeover.
India aspires to be all-electric by 2030. The government is moving toward more personal mobility and cleaner modes of transportation in order to meet this goal. Traditional businesses like Mahindra Electric and Hero Motocorp Ltd. are expanding quickly in this market. Also not far behind are the new startups. Ola Electric, Okinawa Autotech, and Ather Energy are modern startups that have had greater sales growth over time.
India has had strong growth over the past several months concerning the sales of electric two-wheelers. 2,40,662 registered electric two-wheelers have been sold between January and June 2022. The electric two-wheeler market is anticipated to expand at a robust annual compounded growth rate of 75–80 percent between FY22 and FY25, according to a study by India Ratings & Research (Ind-Ra).
Data from the Federation of Automobile Dealers Association (FADA) shows that market leaders in the two-wheeled industry, such as Hero Electric, Okinawa, and Ampere, continue to hold influence. Startups for electric two-wheelers have started to do remarkably well at the same time. Even though these companies may still have many unanswered problems following the recent fire accidents, four of the top ten selling Electric two-wheeler brands in India during 2022 – 23 were startups.
In FY22, 56,827 units were sold by four startups among India’s top 10 electric two-wheeler brands: Ather, Ola Electric, PURE Energy, and Okinawa Autotech. In FY21, these businesses only sold 8,273 items. The gap reflects a YoY growth increase of over 600%.
The Industry’s Top Startup EV Companies
Recent innovations in the electric two-wheeler market have given startups an advantage over established players. The top unlisted businesses with a sizable market share are listed below.
The Haryana-based Okinawa Autotech Pvt Ltd. produces electric two-wheelers. The company currently runs 24 dealerships and has plans to gradually develop 450 outlets around the nation over the following years. It is a seasoned competitor in the electric two-wheeler market. When sales in the Indian market surpassed 100,000, the company just hit a new milestone. The company is expected to release three new electric bike models each year and may soon consider producing electric motorcycles as well.
In terms of sales, it occupied the second spot for electric two-wheelers. The company reported sales of 46,447 units during FY22, an increase of 566% over the previous year. It now has a 20% market share as a result.
Ather Energy Pvt. Ltd. was established in 2013 and manufactures electric vehicles in India. The rapidly expanding Bangalore-based business is ranked third among the Top 25 EV OEMs. Hero MotorCorp owns about a 32% share in the firm and is its backer. Ather accounts for 9% or so of the market for electric two-wheelers.
The manufacturer of smart e-scooters sold 19,971 EVs in FY22, a 354% YoY increase. Even though the company only offers two models—the Ather 450X and 450 Plus—demand has increased. The OEM is working on a cost-effective e-scooter in addition to funding its fast-charging network, Ather Grid 2.0, which is anticipated to increase sales. With a goal of 500 across the nation, Ather is quickly expanding its network of fast-charging stations each month.
- PURE EV
The company PURE ENERGY, whose name stands for Power Using Renewable Energy, is primarily concerned with facilitating the switch to sustainable energy sources. Under the brand names “PURE EV” for electric two-wheelers and “PURE Lithium” for high-performance lithium batteries, the company entered the market. It is anticipated that in the near future, it will rank among India’s top EV startups! Pure EV is ranked fifth with 14,862 unit sales for FY22. Given that it has risen two places from the seventh position in FY20, its performance is outstanding.
- OLA Electric
Ola Electric Mobility is a Bangalore-based producer of electric two-wheelers in India. It separated from Ola in 2019 and began shipping its electric scooters in December. The Unicorn EV producer will shortly list on a public stock exchange. The corporation has increased its authorized share capital by an astounding 17,121%.
One of India’s most significant electric two-wheeler debuts for 2021 is reportedly Ola’s S1. It is a high-end electric scooter created in the style of the Etergo AppScooter. Despite the company’s 2021 launch, 14,371 units were sold during the fiscal year 2022.
Conclusion
Only 2,31,338 electric two-wheelers were sold in India during FY22, compared to a total of 1,19,73,415 two-wheelers sold in the nation during the same time period. The best part is that while the two-wheeler market expanded by approximately 4% in FY22, the electric two-wheeler market expanded by more than 400%. The expansion of the EV business may be attributed to the various states’ electric vehicle incentive schemes.
In India, the electric vehicle market is still in its development stage. According to a report by Avendus Capital, the market is anticipated to reach Rs 50,000 crore in India by 2025. In the wake of COVID-19, two- and three-wheelers are anticipated to push increased electrification of automobiles in the medium term. Given that the EV seems to be the future of the automotive industry, this presents tremendous potential for investors. This is clear from the market entry strategies adopted by businesses.
