With higher-quality features, greater economy in terms of operating cost, and also being more environmentally friendly Electric two-wheelers are likely to be more popular: Redseer
Redseer has suggested in its report that early adopters of electric bicycles are enticed by innovative policies and products.
The report noted that a robust charger infrastructures are the main factor in EV adoption and widespread use and highlighted the lack of infrastructure available in the country.
The market for electric two-wheelers are expected to reach 78% of total two-wheeler market in the United States in 2030, assisted by policies of the government, technological advances infrastructure, and customer acceptance, according to a report from Redseer reported.
With more features, better economy in terms of operating costs and also being greener electric two-wheelers are predicted to be more popular as opposed the Internal combustion engine (ICE) vehicles, according to the report.
“Interestingly the low need for maintenance and low fuel expenses is also drawing B2B players to investigate electric two-wheeler technology as a sustainable method of commercial operations.” Mukesh Kumar, Engagement Manager at Redseer Strategy Consultants, said.
Redseer further suggested it in the report initial adopters of electric bicycles are encouraged by government policies and products that are innovative. It also said that an upswing on the rate of growth could be triggered by the overall improvement in the charging ecosystem. This will also lead to steady growth for the market for electric two-wheelers in India.
“Although the market is growing rapidly but it’s not without its problems – lengthy charge times and poor infrastructure for charging are two of the most significant issues that plague both users and non-users alike,” explained Kumar. “However thanks to government incentives and the growing demand in the charging industry, many companies, along with government agencies are working to improve the charger infrastructure across India.”
The report stated that a strong charge infrastructure is the main factor that will boost EV adoption and adoption.
Yet, India currently has only approximately 3,000 charging stations for EVs that is about six charging stations available per 1,000 EVs, as the report stated. In stark contrast, China, which has the most EV manufacturers, has around 200 charging stations per 1000 EVs.
According to the latest data released by the government in the last few days, more than 13 Lakh electric vehicles are in operation across Indian roads. But, as part of the phase-I in the Accelerating Adoption and Production of (Hybrid and) electric vehicles (FAME) India Scheme, 479 charging stations were constructed in India in July 1st 2022.
However, among the 2,877 electric vehicle charging stations approved by the Ministry of Heavy Industries under Phase II of FAME 50 stations for charging have been constructed to date.
Although the number of charging stations set up at present in the country could be much more than this, with private companies being added to the mix However, the number operating charge points for public use is not yet high. Some industry experts are also telling Business Headers that recent reports suggest the government’s initiatives are admirable however the implementation could be more efficient.
In addition, while highlighting the dominance of market share of a few players it was noted in the Redseer report also pointed out that although more than 150 electric two-wheeler manufacturers are currently available on the market, it’s heavily dominated by the top nine players: Ola Electric, Ather Energy, Hero Electric, Okinawa Autotech, Hero Electric, Bounce, Pure EV, and many more.
“A extremely long tail of unorganised assembly companies, importers and other brands are currently in existence; however, as the market matures these players will face intense competition from established core competitors,” the report added.
In the wake of several fire incidents, the registrations for vehicles of a lot of EV players have decreased month-on-month in the past few months.
After the 27.3 percent MoM decrease in May Ola Electric’s registrations fell 36.5 percent in June to 5,874 units, according per Vahan information. Okinawa Autotech’s registrations fell 25 percent MoM up to 6,980 units in June , down from 9,305 units recorded in May. In April, the company’s registrations for vehicles stood 1114 vehicles.
After numerous fires involving electric two-wheelers after multiple fire incidents, the Ministry of Road Transport And Highways and the Central Consumer Protection Authority had issued warnings to the companies involved.
In May the month of May, Union minister Nitin Gadkari declared that India will have 3 million EVs within over the course of two years. In addition, a NITI Aayog study said the month before that in an ideal scenario the country will have 100% electric two-wheelers in India by the end of FY27.