E2W Market in India

The adoption levels among these EV categories vary and depend on their specific use cases and the variety of models offered by OEMs apart from their price relative to their ICE counterparts.

In the e-PV market, the level of product variant coverage varies across the 2W and 4W segments. In the 2W high-speed scooter category, the market is comparatively well represented with multiple OEMs both incumbents and new age EV players like TVS, OLA Electric, Ather, Hero Electric, and Pure Present. These companies combined offer approximately 26 different variants at multiple price points, providing consumers with a wide array of options as shown in Exhibit 2.

On the other hand, the low-speed scooter segment is relatively underserved, with only 6 models available from Hero electric, Pure, Yulu, and Okinawa. For motorbikes, the market is still at a nascent stage and rapidly evolving, with 7 models at present offered by Revolt, Pure, and Komaki.

TCO analysis

While electric bikes and scooters have high initial investments, overall ownership costs throughout the lifecycle of vehicle are more economical than traditional vehicles. The higher upfront capital costs associated with e2Ws are effectively balanced by substantial fuel consumption savings compared to their ICE counterparts. For e2W scooters sold with subsidy, there is reduction of 18% in total ownership cost over ICE 2W resulting in lifetime savings worth INR 40K, compared to a 10% reduction in total ownership cost when sold without subsidy. Similarly, e2W motorcycles are 15% (with subsidy) and 9% (without subsidy) more cost efficient than the petrol counterparts as shown in Exhibit 3.