In Short : India’s electric two-wheeler sales surged 34-fold in four years, hitting 1.1 million units in 2024. However, market share remains around 4–5%, hindered by reduced subsidies, high costs, and charging concerns. Legacy players like TVS and Bajaj are gaining ground as Ola’s dominance wanes. With policy support, e2W market share could rise to 13% by 2026–27.
In Detail : India’s electric two-wheeler market has grown significantly over the past four years, with sales jumping from around 32,000 units in 2020 to approximately 1.1 million in 2024. This 34-fold increase highlights rising interest in electric mobility, driven by growing environmental awareness and government efforts to promote clean transportation.
Despite the surge in sales, electric two-wheelers still hold only around 4–5% of the total two-wheeler market. This share has remained largely stagnant over the last two years, raising concerns about the broader adoption of electric vehicles in the country.
One key reason for this plateau is the reduction in government subsidies, particularly following the revision of the FAME II scheme. The lowered incentives have made electric two-wheelers less affordable for many consumers, slowing momentum in the segment.
Other challenges include high upfront costs, limited charging infrastructure, and ongoing concerns about battery reliability and performance. These factors continue to hinder wider acceptance, especially among rural and semi-urban buyers who seek practicality and affordability.
The competitive landscape is also shifting. Traditional automakers like TVS Motor and Bajaj Auto are capturing greater market share, leveraging their strong dealer networks and brand trust. Ola Electric, once dominant, has seen its share decline sharply, from over 50% to about 20% in May 2025.
Looking forward, analysts estimate that electric two-wheelers could account for 13% of total two-wheeler sales by 2026–27. Achieving this will require sustained policy support, enhanced infrastructure, and more competitively priced products that meet the expectations of Indian consumers.
