India Electric Scooter Market Outlook to 2030

India Electric Scooter Market Overview

• The India electric scooter market is valued at USD 700 million, based on a five-year historical analysis. This growth is driven by favorable government policies, such as the FAME-II scheme, which provides subsidies and incentives for electric vehicle adoption. Furthermore, rising fuel costs and increasing consumer awareness regarding environmental sustainability have propelled the demand for electric scooters across urban and semi-urban regions. These factors, coupled with advancements in lithium-ion battery technology, have made electric scooters a more viable option for short to medium-distance commutes.
• Dominant cities in the Indian electric scooter market include Delhi, Bangalore, and Pune, primarily due to their proactive adoption of electric vehicles, better charging infrastructure, and supportive government policies. Additionally, cities like Chennai and Mumbai have shown significant growth, driven by their dense population, traffic congestion, and the need for efficient urban mobility solutions. The increasing number of public and private charging stations in these cities also facilitates their dominance in the market.
• The FAME-II policy framework provides subsidies for electric scooter manufacturers and incentives for setting up charging infrastructure. It has led to the establishment of more than 2,600 charging stations and facilitated the deployment of 400,000 electric scooters nationwide, supporting the goal of reducing Indias oil import bill by $3 billion annually.

India Electric Scooter Market Segmentation

By Battery Type: The market is segmented by battery type into lead-acid and lithium-ion batteries. Lithium-ion batteries have a dominant market share in India under this segmentation. This is due to their higher energy density, longer lifespan, and lighter weight compared to lead-acid batteries. These advantages make them an ideal choice for electric scooters, enhancing vehicle efficiency and performance. Moreover, advancements in lithium-ion battery technology have resulted in reduced prices, further boosting their adoption among electric scooter manufacturers and consumers.

By Voltage Type: The market is segmented by voltage type into 24-36V, 48-60V, 61-72V, and above 72V. The 48-60V segment has a dominant market share in India due to its optimal balance of power and efficiency. These batteries are widely used in standard and high-performance electric scooters, offering better acceleration and range capabilities for daily commuting. Additionally, 48-60V batteries are commonly used in electric scooters designed for urban traffic conditions, making them a preferred choice among manufacturers targeting city riders.

India Electric Scooter Market Competitive Landscape

The India electric scooter market is characterized by a mix of domestic and international players. Companies such as Hero Electric, Ola Electric, and Ather Energy dominate the domestic market, while international brands like Gogoro and Yadea are making inroads with technology partnerships and product innovations. The competitive landscape is further intensified by the entry of traditional two-wheeler manufacturers like Bajaj and TVS into the electric segment.

India Electric Scooter Industry Analysis

Growth Drivers

• Rising Fuel Prices and Cost-Effectiveness: Rising fuel prices, which have averaged INR 100 per liter in major Indian cities, are compelling consumers to explore cost-effective alternatives like electric scooters. With electricity costs hovering around INR 7 per kWh, the operating cost of electric scooters remains significantly lower. Consumers save approximately INR 3,000 monthly on fuel expenses by switching to electric scooters, making it an economically viable option for daily commuting.
• Urbanization and Traffic Congestion: India's urban population is expected to reach 600 million by 2036, up from 31% in 2011, placing immense pressure on existing urban transport infrastructure. Electric scooters, being compact and efficient, present a solution to ease congestion and reduce pollution levels. With cities like Delhi and Bangalore recording vehicular densities of over 800 vehicles per km, electric scooters offer a convenient and faster way to navigate through congested roads.
• Advancements in Battery Technology: The cost of lithium-ion batteries has dropped to $132 per kWh as of 2024, making electric scooters more affordable and extending their range capabilities. The development of new battery technologies, such as solid-state batteries, is expected to further reduce charging times and improve safety, enhancing consumer confidence. India's battery manufacturing capacity is set to exceed 50 GWh by 2025, driven by investments from companies like Tata Chemicals and Exide.

Market Challenges

• Lack of Charging Infrastructure: India has approximately 1,742 public EV charging stations as of 2024, which is inadequate to support the growing number of electric scooters. Most charging points are concentrated in metropolitan cities, leaving rural areas underserved. This imbalance in infrastructure availability hinders the broader adoption of electric scooters, especially for consumers in tier-2 and tier-3 cities.
• High Initial Costs: Despite the reduction in battery costs, the upfront price of electric scooters remains high compared to conventional models. For instance, a typical electric scooter costs around INR 90,000120,000, whereas a petrol scooter costs INR 60,00080,000. This cost disparity continues to be a barrier for middle- and lower-income consumers, necessitating more robust financing and subsidy models.

India Electric Scooter Market Future Outlook

The India electric scooter market is expected to witness significant growth in the coming years, driven by continuous support from government policies, rapid advancements in battery technology, and increasing consumer demand for eco-friendly transportation solutions. With more players entering the market and existing manufacturers expanding their portfolios, the competitive landscape is set to become even more dynamic.

Market Opportunities

• Expansion of Charging Networks: The Indian government plans to establish 5,000 new charging stations by 2025, focusing on tier-2 and tier-3 cities to promote broader electric vehicle adoption. This expansion will help mitigate range anxiety and improve consumer confidence. Public-private partnerships, like those between Tata Power and IOCL, are expected to catalyze the development of nationwide charging infrastructure.
• Technological Innovations (Battery Swapping, Fast Charging): Battery swapping technology, pioneered by companies like Bounce Infinity, enables users to replace depleted batteries at designated stations, eliminating long charging times. This innovation is expected to boost the adoption of electric scooters for commercial use. Similarly, advancements in fast-charging technologies, which can charge a scooter up to 80% in 30 minutes, are making electric scooters more convenient.