Rise in EV rental of 2-wheelers in india – EQ Mag
Electric vehicle (EV) rental services, particularly for 2-wheelers, have seen a significant rise in India in recent years. This can be attributed to various factors, including the growing awareness about the benefits of EVs, the increasing availability of charging infrastructure and the government’s push towards the adoption of electric vehicles.
In 2021, electric two-wheeler sales have gone up by 305% in India. The market for two-wheeler Electric Vehicles has increased from 2,000 vehicles in 2013 to over 600,000 per year in 2022. EV sales add up to 4 percent of overall two-wheeler sales in 2022. Demand for electric 2-wheelers in India could be as high as 8.2 million a year and that is just a small portion of an estimated 21 million units sold per year. All this growth has been done by the initiatives from the Indian government to increase e-mobility in the country. On the other hand, China has sold 45 million electric two-wheelers in 2022. So, India which is also a larger populated country like China has a really long way to go.
One of the major reasons for the rise in EV rental services in India is the growing demand for cost-effective and eco-friendly transportation options. With rising fuel prices and concerns about air pollution, more people are turning towards electric vehicles as a sustainable alternative.
The overall sales of electric motorcycles and scooters reduced drastically during Covid 19 pandemic.
However, the market quickly readjusted in the second half of 2020 and now the demand is quickly increasing. Noise and air pollution in major cities like New Delhi, Mumbai, Bangalore, etc. are two more factors driving the market alongwith reduced operating costs and cost reductions. Electric scooters witness higher sales than e-motorcycles due to lower upfront costs and the availability of widest range of models in the market providing enough options for buyers.
In addition, the Indian government has launched several initiatives to promote the adoption of EVs, such as subsidies and tax incentives for electric vehicle manufacturers and buyers. This has also contributed to the growth of the EV rental market in India. Through its FAME II (Faster Adoption and Manufacturing of Electric Vehicles) policy the government is encouraging more and more EV adoption. The Indian Finance Minister has even planned to include battery swapping in his FY 23 budget. Adoption of Electric Vehicles in both market and government-driven Cost reductions are being reached by the localisation of the manufacture of components. FAME 2 also offers subsidies for higher-speed EV 2-wheelers.
Furthermore, the availability of charging infrastructure has improved significantly in recent years, which has made it easier for people to use EVs for longer distances. Many companies providing EV rental services have also set up their own charging stations to ensure a seamless experience for their customers. Electric-Bikes are environmentally friendly, running mostly on Li-ion chargeable batteries. It can give you a maximum range of 99.4 miles (160 km) on a single charge. With the choice of battery typing 8, 12, or 18-amp hour batteries, it also gives a choice for the customer as per their use.
Because of the COVID-19 pandemic, people were forced to have their own e-bikes for commuting instead of using crowded public transport. The sales of electric bikes boomed in 2020, with manufacturers had struggled to keep up with the demand. The bike rental company has Bounced back and added about 5,000 more electric two-wheelers in 2022 as it looks to transform to a 100% electric vehicle (EV) fleet by the third quarter of next year.
Buying an own vehicle is no longer a status symbol or asset building, rather people are alert of the capital being blocked and the difficulty of ownership. This is a long-term trend and Niti Aayog has estimated that 35 percent of all passenger miles in India will be on shared transport by 2030 and by 50 percent of passenger miles will be on shared transport by 2040.
Of such disruptions, the rental of electric vehicles is at a crossroads. It allows for better usage of the vehicles while being managed by professionals in dedicated fleet management setups. The arrival of electric vehicles, electronic payments, and IoT (Internet of Things) devices enable rental companies to offer an end-to-end solution to customers without any hassles of insurance, maintenance, repairs, etc.
The Government of India is also motivated to use E-Bikes. The government wants to convert all fuel-run vehicles into electric vehicles by end of 2035. Electric-Bikes can ride as fast as 25 kmph (15.5 mph) and can easily cover 60 km (37.2 miles) in a single charging cycle. Many startups are working on expanding spaces for parking and charging stations and also for battery manufacturing. Overall, the rise in EV rental services for 2-wheelers in India is a positive trend that aligns with the country’s goals of reducing greenhouse gas emissions and improving air quality.