Sales of electric two-wheelers in India (excluding low-speed electric vehicles that do not require a licence and have a maximum speed of 25 km/h or less) were less than 30,000 a year until 2020, but jumped to 154,000 in 2021 and to 624,000 in 2022, four times the figure for the previous year. Factors contributing to the surge in demand include: 1) a 1.5-fold increase in subsidies for the purchase of electric two-wheelers from June 2021; 2) a sharp rise in the price of petrol, which had been rising since 2021, following Russia’s invasion of Ukraine in 2022; 3) a surge in the number of new manufacturers entering the electric motorcycle business and the introduction of electric vehicles against a backdrop of rising demand; and 4) an increased have become more active, and 4) equipment has become smarter and more entertaining than in the case of petrol motorcycles.

However, despite the continued strong demand, the second largest seller of electric motorcycles, after Ola Electric, and the third largest seller, Hero Electric, did not meet the local procurement requirements for designated parts, a condition for receiving subsidies, and all of their products will no longer be eligible for subsidies from October 2022. products are no longer eligible for subsidies. In particular, Okinawa Autotech has seen its price competitiveness decline significantly, as the price of the iPraise+, which was selling at R106 000, has increased by R40 000 (approx. 64 000) to R146 000. Meanwhile, sales leader Ola Electric will launch a lower-priced Rs 73 000 model, the S1 Air, in April 2023; the S1 Air is a value-added product with advanced digital technology at a lower price. TVS Motor’s iQube ST, scheduled for launch in 1Q2023, will be the industry’s first Alexa-equipped model and will also feature space for two helmets, adding to the growing number of electric two-wheelers with advanced digital technology and convenience.

Currently, more than 100 emerging electric two-wheeler manufacturers are in the fray in India, and competition is expected to intensify further as Honda, Yamaha, Suzuki and others will also launch electric products between 2023 and 2024. While manufacturers lacking product competitiveness and capital strength will be weeded out, Ola Electric is expected to further strengthen its presence in the electric two-wheeler segment, backed by ample funds obtained from investors.