India E-Bike Market Outlook to 2030

India E-Bike Market Overview

• The India E-Bike Market was valued at USD 1.5 Bn in 2023. The growth is driven by the rising need for eco-friendly transportation options in urban areas, coupled with the governments push for electric vehicles (EVs) under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. The increasing fuel prices are also contributing to the expansion of the e-bike sector.
• Key players in the market are Hero Electric, Okinawa Autotech, Ather Energy, Revolt Motors, and Ampere Vehicles. These companies have established strong market positions through extensive product offerings, widespread distribution networks, and continuous innovation in design and technology.
• The Government of India has extended the FAME II scheme until July 31, 2024, providing an additional 500 crore for electric vehicle subsidies. This extension aims to support the adoption of electric two-wheelers and three-wheelers, following a reduction in subsidies earlier this year.
• Karnataka, has emerged as a dominant city for e-bikes. The proactive policies of the Karnataka government, which has been at the forefront of promoting electric vehicles. The state capital, Bengaluru, is home to several leading e-bike manufacturers and has a well-established charging infrastructure.

India E-Bike Market Segmentation

The market is segmented into various factors like product, battery, and region.

By Product: The market is segmented by product into pedelecs, throttle-on-demand e-bikes, and scooter-style e-bikes. In 2023, pedelecs dominated the market due to their popularity among urban commuters seeking a combination of exercise and eco-friendly transportation. Pedelecs are preferred for their convenience and ability to cover long distances with minimal effort, making them ideal for city travel.

By Battery: The market is segmented by battery into lithium-ion batteries, lead-acid batteries, and nickel-metal hydride batteries. In 2023, lithium-ion batteries held the largest market share by their superior energy density, longer lifespan, and lighter weight compared to other battery types. The dominance of lithium-ion batteries is also due to their decreasing costs and increased adoption by manufacturers.

By Region: The market is segmented into region into North, South, East, and West regions. In 2023, the Southern region led the market due to its robust infrastructure, government incentives, and a high concentration of e-bike manufacturers. The government policies and support for EV adoption have made it a hub for e-bike innovation and sales.

India E-Bike Market Competitive Landscape

• Okinawa Autotech: Okinawa Autotech made headlines in 2024 with the introduction of its Oki100 e-bike, which is Indias first fully locally manufactured electric motorcycle. The Oki100 is equipped with a 72V lithium-ion battery and has a range of 150 km on a single charge. This innovation is expected to set a new standard in the Indian e-bike market and drive further competition.
• Hero Electric: Hero Motocorp's partner, Zero Motorcycles, is developing a mini electric bike aimed at urban markets, resembling the Honda Grom. The bike will feature removable batteries, a shift from Zero's current fixed battery models. However, a launch in India is unlikely due to market reception concerns.

India E-Bike Market Analysis

Market Growth Drivers

• Substantial Government Subsidies Boosting E-Bike Sales: The Electric Mobility Promotion Scheme (EMPS) 2024, effective April 1, 2024, aims to bolster India's e-bike market by providing incentives of 5,000 per kWh of battery capacity, albeit with a significant reduction in overall support. This scheme targets 370,000 electric two-wheelers, reflecting a strategic shift post-FAME II, which previously supported 1.38 million units.
• Expansion of Charging Infrastructure Across the Country: India's electric vehicle (EV) infrastructure is rapidly expanding, with12,146 public charging stationsnow operational as of February 2024. This growth is crucial for alleviating range anxiety and boosting EV adoption, which saw sales increase by40%in 2023-24, reaching1.67 million unitssold.
• Rising Concerns Over Air Pollution Driving Eco-Friendly Choices: Air quality in Indian cities has become a critical issue, with data from the Central Pollution Control Board (CPCB) indicating that particulate matter levels in cities like Delhi and Mumbai exceeded safe limits by 40% in 2024. This alarming situation has driven consumers towards more environmentally friendly transportation options, including e-bikes.

Market Challenges

• Limited Charging Infrastructure in Rural Areas: While urban centers have seen an expansion in charging infrastructure, rural areas still lag significantly behind. As of mid-2024, only 15% of India's rural regions had access to public EV charging stations, according to data from the Ministry of Power. This lack of infrastructure presents a considerable challenge to the penetration of e-bikes in rural markets.
• Competition from Conventional Two-Wheelers: In 2024, sales of conventional two-wheelers outpaced e-bike sales. This strong competition, coupled with consumer concerns about the range and performance of e-bikes, presents a significant challenge for the market. The entrenched preferences for traditional motorcycles and scooters, especially in rural areas, are slowing the transition to electric alternatives.

Government Initiatives

• Introduction of the National EV Policy: The Government of India's New Electric Vehicle Policy 2024 aims to establish the nation as a manufacturing hub for electric vehicles. Key measures include reducing customs duty to 15% for CKD units, capping imports at 8,000 EVs annually, and requiring a minimum investment of 4,150 crore. The policy targets a reduction in emissions by 2030, promoting local manufacturing and innovation in the EV sector.
• State-Level Incentives and Policies: In 2024, several states, including Maharashtra, Karnataka, and Tamil Nadu, introduced their own EV policies, offering additional incentives for e-bike buyers. Maharashtra an additional subsidy which led to an increase in e-bike registrations in the state within the first six months of the year. These state-level initiatives complement national policies and create a more favorable environment for the growth of the e-bike market.

India E-Bike Market Future Outlook

The future trends in the India e-bike industry include the adoption of smart e-bikes with IoT integration, the expansion of battery-swapping networks, the growth of e-bike subscription services, and the introduction of advanced battery technologies like solid-state batteries.

Future Market Trends

• Expansion of Battery Swapping Infrastructure: Battery swapping is poised to become a dominant trend in the Indian e-bike market, with the government and private sector planning to establish over 5,000 battery-swapping stations across the country by 2028. This expansion will make e-bikes even more convenient for consumers, as they will no longer have to wait for their batteries to charge.
• Growth of the E-Bike Subscription Model: The next five years are likely to witness a rise in e-bike subscription services, where consumers can rent e-bikes on a monthly or yearly basis. This model will cater to the growing demand for flexible transportation solutions, especially among urban millennials and young professionals.