New Delhi: Reducing the cost of electric vehicles (EV), as well as an increase in subsidies along with the newer model, is expected to increase electric two-wheeler’s (e-2W) penetration.
In FY21, e-2Ws contributed less than one percent of all two-wheelers sales. The sub-segment is expected to contribute 7-10 percent to the overall 2W sales by FY25.
“As e-mobility penetration is likely to be more in scooters, e-scooters sales as the overall percentage of total scooter sales would be much higher at 20-25 percent,” said India Ratings and Research (Ind-Ra).
This growth, the agency expects, would majorly be driven by the reducing delta between the price of electric vehicles (EV) and internal combustion engine (ICE) vehicles due to the increased subsidies under the FAME-11 scheme along with the new er model launches anticipated over the next few years. Ind-Ra believes e-scooters would lead to electrification in this industry segment, given their higher urban presence
Moreover, the new models launched recently as well as planned over the next few years are likely to have a better range, speed, and battery size.