India Electric Two-Wheeler Market, By Region, Competition, Forecast & Opportunities, 2021-2031F

The India Electric Two-Wheeler Market was valued at USD 0.79 Billion in 2025, and is expected to reach USD 3.22 Billion by 2031, rising at a CAGR of 26.54%. The market is undergoing a dynamic transformation driven by consumer inclination toward eco-friendly mobility, advancements in electric drivetrain efficiency, and supportive government initiatives.

Policies such as FAME-II and various state-level EV subsidy programs are helping reduce upfront costs and accelerate adoption. The introduction of new schemes like PM E-DRIVE and improvements in battery technology are enhancing the viability of electric two-wheelers over internal combustion engine (ICE) models. Increasing environmental awareness, rising fuel prices, and expanding charging infrastructure are further reinforcing this shift. Startups and established players alike are investing in product innovation, leading to a surge in options for Indian consumers and supporting robust market expansion.

Key Market Drivers

Supportive Government Policies

Policy incentives from both central and state governments are acting as strong catalysts for electric two-wheeler adoption. Measures such as the FAME-II scheme, GST reductions on electric vehicles, registration fee waivers, and income tax deductions on EV loans have made EVs more affordable and accessible. The launch of the PM E-DRIVE scheme in 2024, offering a maximum subsidy of USD 118.5 in its first year, adds further momentum to the sector.

These policies not only reduce consumer acquisition costs but also promote domestic manufacturing and innovation in the EV segment. A notable impact of these supportive measures is the rise in electric two-wheeler startups - from 54 in 2021 to over 150 by early 2024 - many of which now hold dominant market positions. With Ola Electric leading at a 39% market share, startups have become central players in India’s evolving electric mobility landscape. Continued policy reinforcement is expected to sustain high adoption rates in the coming years.

Key Market Challenges

Range Anxiety and Charging Limitations

Despite progress, range anxiety remains a prominent barrier to widespread electric two-wheeler adoption. Consumers often hesitate to switch from ICE vehicles due to uncertainty about travel distance per charge and the availability of reliable charging infrastructure. The scarcity of fast-charging stations and extended charging durations reduce user convenience, especially in high-traffic urban areas. Moreover, limited access to private parking with charging setups poses challenges for city dwellers. These factors discourage long-distance travel and impact user confidence in EV reliability. Addressing this issue requires technological enhancements in battery range and accelerated deployment of a dense, user-friendly charging network nationwide.

Key Market Trends

Battery Swapping and Subscription Models

Battery swapping is gaining traction as a time-saving alternative to conventional charging, offering rapid battery replacement at dedicated stations. This approach significantly boosts operational efficiency, especially for logistics and delivery operators that rely on high vehicle utilization. Subscription-based models such as Battery-as-a-Service (BaaS) allow users to pay a monthly fee for battery use, separating battery ownership from vehicle ownership and reducing upfront purchase costs. These services also include centralized battery monitoring and lifecycle management. Successful implementation of battery swapping hinges on industry-wide standardization, wide availability of swap stations, and coordination among OEMs and infrastructure developers. As these networks grow in urban areas, this model is expected to reshape the economics and adoption patterns of electric two-wheelers in India.

Key Market Players

• Hero Electric Vehicles Pvt. Ltd
• Okinawa Autotech International Private Limited
• Greaves Electric Mobility Private Limited
• Ather Energy Limited
• PuR Energy Pvt. Ltd
• Ola Electric Mobility Ltd
• TVS Motor Company
• Revolt Intellicorp Private Limited
• BENLING INDIA ENERGY AND TECHNOLOGY PVT LTD
• Bajaj Auto Ltd

Report Scope:

In this report, the India Electric Two-Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Electric Two-Wheeler Market, By Range:

• 50-100 Km
• 101-150 Km
• Less than 50 Km
• Above 150 Km

India Electric Two-Wheeler Market, By Battery Capacity:

• < 25 Ah
• >25 Ah

India Electric Two-Wheeler Market, By Battery:

• Lead Acid
• Li-ion

India Electric Two-Wheeler Market, By Vehicle:

• Scooter/Mopeds
• Motorcycle

India Electric Two-Wheeler Market, By Country:

• East India
• West India
• North India
• South India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Electric Two-Wheeler Market.

Available Customizations:

With the given market data, the publisher offers customizations according to the company’s specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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