APAC Electric Two-Wheeler Market Outlook to 2030

APAC Electric Two-Wheeler Market Overview

• The APAC electric two-wheeler market is currently valued at USD 101 billion, driven by rising environmental concerns, government incentives, and increasing urbanization. As electric vehicles (EVs) gain popularity due to their low emissions and cost-effectiveness, two-wheeler EVs are seeing rapid adoption across the region. Major cities in countries like China, India, and Japan are transitioning towards electric two-wheelers to combat pollution and reduce reliance on fossil fuels.

• Market dominance is seen in China, which accounts for majority of the electric two-wheeler sales in the region, thanks to government subsidies and a well-established EV manufacturing ecosystem. India is following closely with strong government backing, including initiatives such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. Other Southeast Asian countries like Vietnam and Thailand are also witnessing growth as they aim to reduce carbon emissions.
• Government policies play a pivotal role in driving the electric two-wheeler market across APAC. Indias FAME II scheme offers subsidies for electric vehicle purchases, while Japan has announced zero-emission targets for transportation by 2035. China has implemented stringent pollution controls, further incentivizing the shift towards electric mobility.

APAC Electric Two-Wheeler Market Segmentation

• By Vehicle Type: The market is segmented by vehicle type into electric scooters and electric motorcycles. Electric Scooters dominate the market in urban areas, particularly in countries like China and India, where short-distance travel is common. These scooters are favored due to their affordability, ease of use, and suitability for city commuting. Cities like Shanghai, Beijing, and New Delhi are seeing a rise in electric scooter sales as urban residents seek efficient, low-cost transportation options.

• By Battery Type: The market is further segmented by battery type into lithium-ion and lead-acid batteries. Lithium-ion Batteries dominate the market due to their superior energy efficiency, lighter weight, and longer lifespan. These batteries are preferred by manuf acturers and consumers in countries like China and Japan, where performance and durability are prioritized. In 2024, over 85% of electric two-wheelers sold in China were equipped with lithium-ion batteries, driven by advances in battery technology and declining costs.

APAC Electric Two-Wheeler Market Competitive Landscape

The APAC electric two-wheeler market is highly competitive, with both global and regional players vying for market share through innovation, partnerships, and government collaborations. Key companies such as Yadea, Hero Electric, and Okinawa dominate the market, leveraging their strong R&D capabilities and local manufacturing advantages.

APAC Electric Two-Wheeler Industry Analysis

Growth Drivers

• Rising Demand for Sustainable Mobility: The demand for electric two-wheelers in the APAC region is driven by the increasing shift towards sustainable mobility. By 2024, countries such as India and China have seen a surge in electric two-wheeler registrations due to growing concerns over pollution and fuel dependency. In 2023, India registered over 850,000 electric two-wheelers, and Chinas sales exceeded 6 million units. The shift is largely driven by consumers seeking eco-friendly alternatives, especially in urban areas where air quality is a significant concern. These trends highlight the growing consumer preference for electric scooters and motorcycles.
• Government Subsidies and Incentives: Governments in the APAC region, especially in India and China, are promoting electric two-wheelers through direct subsidies and incentives. In India, the FAME II scheme offers subsidies of INR 15,000 per kWh for electric two-wheelers, significantly lowering the upfront cost. Chinas subsidy for electric motorcycles and scooters stands at RMB 2,500 per unit in 2023. These initiatives have resulted in an increased adoption rate in both urban and rural areas, helping the APAC electric two-wheeler market grow substantially.
• Technological Advancements in Battery and Charging Infrastructure: Technological advancements in battery technologies, including the development of battery swapping systems and fast-charging infrastructure, have accelerated the growth of the electric two-wheeler market in APAC. In 2024, Taiwan's Gogoro has set up more than 2,300 battery swapping stations, and India has installed over 3,000 fast-charging stations in key cities. These developments have reduced the downtime associated with charging, making electric scooters and motorcycles more attractive to consumers and contributing to market growth.

Market Challenges

• High Battery Costs: The high cost of lithium-ion batteries remains a challenge for electric two-wheeler manufacturers. Although battery prices have dropped by nearly 60% since 2015, they still account for up to 40% of the total vehicle cost. This makes electric two-wheelers less competitive compared to conventional gasoline-powered models, particularly in price-sensitive markets like India and Southeast Asia.
• Lack of Standardization in Charging Infrastructure: The lack of uniformity in charging standards across the region presents a significant barrier to market growth. For instance, while China has a well-established national charging standard, countries like India and Thailand still lack a unified framework, causing compatibility issues between different electric two-wheeler models and charging stations.

APAC Electric Two-Wheeler Market Future Outlook

The APAC electric two-wheeler market is expected to continue its strong growth trajectory, with increasing urbanization, government support, and technological advancements. By 2028, the market is projected to witness a rise in both electric scooter and motorcycle sales, driven by environmental regulations and consumer demand for sustainable transport solutions. Key emerging markets such as Vietnam and Indonesia are set to experience rapid growth as they invest in electric mobility infrastructure and roll out government incentives to encourage EV adoption.

Future Market Opportunities

• Development of Battery Swapping Technology: Battery swapping is expected to revolutionize the electric two-wheeler market by offering a quicker and more convenient solution to range limitations. Several companies, including Hero Electric and Gogoro, have already launched pilot programs in India and Taiwan, allowing users to swap batteries at designated stations within minutes. This technology is likely to gain widespread adoption across the region, addressing one of the key barriers to EV adoption.
• Growth in Emerging Markets: Emerging markets such as Vietnam, Thailand, and the Philippines offer significant opportunities for growth in the electric two-wheeler market. With their large youth populations and rapidly expanding urban centers, these countries are well-positioned to embrace electric mobility. The Philippines, introduced a National Electric Vehicle Roadmap in 2023, outlining plans to phase out gasoline-powered two-wheelers by 2030. Vietnam has also launched a USD 1 billion investment plan for EV infrastructure, creating a favorable environment for market expansion.