As of 2022, the global market for electronic two-wheelers (E2W) is growing at a CAGR of 331.% with multiple factors causing this upsurge such as favorable government policies, increasing demand for energy-efficient commuting, rising concern for emission-free vehicles, and rising fuel prices. The Asia Pacific region is emerging as the fastest-growing market for E2W; India has also become a very potent market in this sphere. The sales of electric two-wheelers in India increased by 132% in 2021, according to a report by the Society of Manufacturers of Electric Vehicles (SMEV). However, there is much to be done with respect to spreading awareness about E2W, its safety, and its benefits to boost EV adoption.
The rising cases of E2W-related accidents have put a dent in the consumers’ confidence in EV vehicles. This translates to a reluctance among the masses as far as EV adoption is concerned. Consumers are now demanding stringent safety protocols and standards to be made mandatory Specifically for the OEM of batteries for E2Ws. Data on the VAHAN portal show that the registration of electric two-wheelers (both cargo and passenger) declined drastically within just a month: 49,084 units in April to 39,492 units in May. Union Minister Nitin Gadkari came forward and urged the E2W manufacturers to make voluntary recalls of batches with faulty EVs; an Expert Committee was also constituted to enquire into these incidents and make recommendations on remedial steps.
However, the lessons learned from such adversities have pushed manufacturers to produce safer products and the same is the demand from the customers as well. For a long, the Indian consumer pool has been looking forward to E2W vehicles that check all the boxes with safety and longevity at the top line. Battery manufacturers have started working towards better battery chemistries, finding alternatives to existing batteries such as lithium-ion batteries. Battery Management Systems are also being deployed that closely monitor battery health and gives real-time update when the battery needs to be replaced. Other remedies include the introduction of swappable battery packs and the development of EV charging stations.
The Indian Government aggressively pushes the electric vehicle agenda to reduce pollution and boost green energy; E2W vehicles being at the forefront of it. 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. Today, the electric two-wheeler market is expected to grow 43.4 % between 2021-to and 2027. EVs are the future of India because they make economic sense on the consumer front as well. Having a lower maintenance cost further adds to the appeal of owning an EV. The major factors driving this growth are: Increase in disposable income Government support and subsidies Increasing awareness about pollution and climate change.
