In FY23, India sold 7.3 lakh electric two-wheelers, with Ola Electric leading the market. Indians purchased 60,000 electric two-wheelers per month. According to Redseer, the country’s E2W penetration is expected to exceed 75% by 2030.
Electric vehicles are gaining traction in India, because to increased car awareness, accessibility, and cost. According to Redseer’s newest electric mobility report, about 7.3 lakh electric two-wheelers (E2Ws) were sold in the country in FY23, which is three times the volume sold in FY22.
Ola Electric maintains its lead in the area, with a 22% market share in FY23. However, in the March quarter (Q4 FY23), its share increased to 30%. “Their differentiated approach to providing end-to-end digital experience coupled with experience centers, tech-first product, and efforts on making vehicles affordable has been the driving force behind them gaining market share in an explosively growing market,” Redseer wrote in its study.
Ola Electric CEO Bhavish Aggarwal recently told Business Today, “The future of EV is going to be technology-led, and there are two or three major technologies that will define that.” The first is software, and the second is energy and cell. We are knowledgeable in both. As a result, once we’ve mastered these technologies and built a platform, we’ll be able to simply construct other product categories on top of it. And if our supply chains are built out at scale on these key technologies, nobody will be able to compete.”
Overall, the Indian EV market has benefited from a number of factors, including the influx of “tech-first, new-age” OEMs directly targeting Gen Z and millennial buyers; the emergence of modern vehicle design and personalization; favorable government initiatives; and demand-side tailwinds driving customer adoptions.
In the previous fiscal year, Indian E2W customers purchased an average of 60,000 electric vehicles every month. “On the demand side, rising fuel prices and increased awareness and comfort with electric vehicles are increasing, whereas on the supply side, OEMs are focusing on vehicle quality and making the vehicle affordable to the masses,” Redseer said.
E2W popularity is expected to skyrocket in the coming decade. According to Redseer, E2W penetration will exceed 30% in the next three years and 75% by 2030. “”In FY23, India had the world’s largest two-wheeler market, selling 16 million vehicles.” This provides a lot of room for electric 2W expansion… “We saw aggressive electric adoption last year, and this will only accelerate,” said Mukesh Kumar, Associate Partner at Redseer Strategy Consultants, said in a statement.
“However, there are a few things that OEMs should focus on, such as improving customer support and the after-sales service experience,” he added.
