Approximately 1.2 million deaths occur because of outdoor air pollution in India per year. Vehicular emissions are among the major causes of air pollution in India. Most of the vehicles in the country are still fossil fuel-based and utilize petrol and diesel heavily. Due to these factors, the Indian government has started implementing strict rules and regulations in hopes of taking charge of this alarming situation. The country is predicted to eventually follow the emission norms that are already prevalent in Western countries. Furthermore, people are becoming more conscious and aware regarding the surging pollution levels in the country. This concern about environmental degradation on the part of the public and government is expected to increase the adoption of environment-friendly vehicles, such as electric two-wheelers, in India.
Electric motorcycles and scooters, like conventional two-wheelers, are designed for two riders and can make their way easily through congested roads, as is often the case in India. These vehicles mostly have a removable battery, which can be charged from traditional wall outlets. In 2018, the India Two Wheeler Market reached a value of $80.0 million and is predicted to generate $698.3 million, witnessing a CAGR of 36.3%, in the coming years. Two types of batteries are used in electric two-wheelers: sealed lead acid and lithium ion (Li-ion). During 2014–2018, sealed lead acid batteries were more in demand because of their lower prices; however, Li-ion batteries are expected to be in higher demand in the coming years. This would be due to their higher efficiency, lighter weight, longer life span, and faster charging capabilities when compared to sealed lead acid batteries. The prices of these batteries are also predicted to fall, which will lead to their increased adoption.
Additionally, government support for Li-ion battery-based electric scooters under the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME II) scheme is also predicted to benefit the category during the forecast period. The Indian government is strengthening the electric vehicles market by offering subsidies on their purchase. These subsidies have also aided the India Two Wheeler Market by making electric two-wheelers more affordable for customers.
Under the Fame II scheme, the government has introduced a subsidy of up to $369 on the purchase of electric two-wheelers, on the basis of battery size. This is making electric two-wheelers more reasonable for customers, which is further driving the growth of the India Two Wheeler Market. In India, while the majority of the electric scooters and motorcycles are powered by SLA batteries, the share of Li-ion batteries is predicted to surge owing to their reducing prices and more benefits compared to lead acid ones.
Each SLA battery consists of 10–20 kg of lead, which is an extremely toxic substance. The sealed lead acid batteries have a lower density than the Li-ion batteries, making the latter efficient and lighter. In addition, Li-ion batteries have a longer life span (over 2,000 charge cycles) than SLA batteries (maximum 400 charges). Furthermore, during the forecast period, the decreasing price of Li-ion batteries is expected to help increase their consumption in the Indian electric scooters and motorcycles market. Hero Electric Vehicles Pvt. Ltd., Lohia Auto Industries, and Electrotherm (India) Ltd. are some of the key players operating in the market.
