After a period of market expansion, sales of electric two-wheelers in India plummeted 56.5% month-on-month to 45,806 units in June 2023. This was due to the Indian government reducing subsidies on 1 June, and in response to this, companies have reduced shipments. However, as the subsidies will end at the end of March 2024, the sales strategies of the major companies will be questioned afterwards.

The top three sellers of electric two-wheelers are Ola Electric, TVS Motor and Ather Energy, which together account for 60% of the sales share. All are high-performance electric scooters with a maximum speed of over 80 km/h and a following range of over 100 km, equipped with the latest digital features, but with a vehicle price of around 140,000 rupees (240,000 yen) after applying reduced subsidies. Ola Electric and Ather Energy are aiming to further increase their market share by launching the low-cost Ola S1Air (RUR 109,999) and Ather 450S (RUR 129,999) models respectively in July 2023, and by expanding their own charging networks for greater convenience.

Although growth in the electric two-wheelers market is expected to slow down after the end of subsidies, demand for cost-effective electric two-wheelers remains strong and may not fall too far. However, if the batteries in electric two-wheelers that have already been sold deteriorate rapidly after two to three years and battery replacement costs are high, demand may fall off rapidly. The outlook for demand for electric two-wheelers in India may depend on the battery degradation problem around 2025.