India's electric scooter market is experiencing remarkable growth, driven by increasing environmental awareness, rising fuel prices, and government initiatives promoting electric mobility. This shift towards electric two-wheelers not only reduces the carbon footprint but also contributes to India’s energy security and sustainability.
Market Growth & Projections
The Indian EV market is projected to expand from US$3.21 billion in 2022 to US$113.99 billion by 2029, exhibiting a compound annual growth rate (CAGR) of 66.52%. By the end of FY25, e-scooter penetration is expected to reach 13-15 percent. Electric scooters are projected to constitute 20% of India's scooter market by FY26. This growth is supported by expanded distribution networks and new product launches. October 2024 marked a milestone for the Indian electric scooter and motorcycle market, surpassing 1 million sales.
Factors Driving Adoption Rising Fuel Costs:
As petrol and diesel prices rise, consumers seek cost-effective alternatives. E-scooters, with lower operational costs and minimal maintenance, are an attractive option. Electric two-wheelers in India are about 45% cheaper to own over their lifespan compared to gasoline-powered counterparts.
Environmental Awareness:
Growing awareness of environmental issues drives consumers towards sustainable transportation solutions.
Technological Advancements: Improvements in lithium-ion battery technology have led to longer ranges, reduced charging times, and enhanced performance.
Increasing Urbanisation:
As cities expand, the demand for personal mobility rises, with scooters being preferred for their convenience in congested urban environments. Government Support: The Indian government has been instrumental in boosting EV adoption through policies like the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme and the PM E-Drive programme.
Competitive Landscape
The Indian electric scooter market is increasingly competitive. In January 2025, Ola Electric took the lead in the market with its market share increasing to 25% from 19% in the previous month. TVS Motor Co's moved to the second spot with 24% market share. And Bajaj Auto, which was in the lead in December 2024, dropped to third place in January 2025.
The Outlook
The future of electric scooters in India looks promising. The market is expected to continue growing rapidly, driven by increasing consumer awareness and government support. Innovations such as longer battery life, faster charging, and improved performance will make e-scooters more appealing. Continued government incentives and expansion of charging infrastructure will further boost adoption.
