Electric Two Wheeler Market

The global electric two-wheeler market is rapidly growing due to government initiatives to encourage electric vehicle adoption, demand for electric two-wheelers among tourists, strategic developments for growth by major players. However, the growth of the market is hampered by high prices of electric two-wheelers and batteries and underdeveloped charging infrastructure and poor aftermarket services.

Governments all around the world, including China, the US, the UK, the Netherlands, Norway, and India, are taking initiatives to increase the awareness regarding the use of electric vehicles to control the adverse impact on the environment and foreign exchange reserves. In 2018, China’s Development and Reform Commission announced a new USD 47 billion fund, which supports the development of Electric Vehicles (EV) technologies.

The European Commission initiated the ‘Green eMotion’ project, which is worth USD 47.22 million (EUR 41.8 million) with an objective to achieve technological optimization and EV market development. This project was launched in partnership with forty-two partners from various industries, utilities, electric vehicle manufacturers, municipalities, universities, and technology and research institutions. This is expected to increase the adoption of electric two-wheelers. The Indian government launched the National Electric Mobility Mission Plan (NEMMP) 2020, with an aim to achieve national fuel security by promoting the use of electric vehicles in the country.

The electric two-wheeler is an ideal solution for short and medium range transportation for individuals as it offers high comfort, ease of driving, and eliminates the need for a car or a conventional bike. Electric two-wheelers provide a cost economical alternative to cars. The rising awareness regarding the unnecessary use of vehicles, particularly at a time when petrol prices are constantly rising, is expected to drive the demand for electric two-wheelers, globally, during the forecast period.

The government initiatives are at a primary stage, as most of the countries are planning to introduce several regulations and initiatives to encourage the adoption of electric vehicles in the near future. Thus, the impact of government initiatives to encourage electric two-wheeler adoption is expected to shift from low to high over the forecast period.

An electric two-wheeler lets the user travel only a limited distance on single charge. The batteries, which are used in these scooters can be improved to enhance their capacity. However, this can only be done at the expense of increasing the weight of the battery, which hampers the efficiency of the electric two-wheeler. The charging duration is also a major concern for the users of electric two-wheelers as it takes 2 to 6 hours for them to fully charge, depending on the battery specifications. Improvement in battery capacity without increasing the battery weight and reduced charging duration could create opportunities for electric two-wheeler manufacturing companies. Major electric two-wheeler manufacturers are working on maximizing the battery capacity and reducing the charging duration. For instance, in 2019, Okinawa Electric Scooters launched Praise, an electric scooter, which can run for 175–200 km on full charge. Improved battery capacity and reduced charging duration are expected to increase the demand for electric two-wheelers. Therefore, the improvement of battery capacity and reduction of charging duration are expected to create opportunities for the global electric two-wheeler market players during the forecast period.

The growth of the global electric two-wheeler market entirely depends upon their rate of adoption among the end users. The high prices of electric two-wheelers and accessories is the most important factor impacting purchase in cost-sensitive regions. The most important concerns of electric two-wheeler end buyers are their battery prices, battery range, and battery life. Although the battery prices have been declining in recent years, electric two-wheeler manufacturers are still struggling to make an affordable and dependable solutions to drive wide adoption. The need to replace the batteries within a span of one to two years also restricts the adoption of electric two-wheeler. Additionally, their long charging time, and safety and security concerns regarding the battery explosion in extreme weather and operating conditions have also been hampering the use of electric two-wheelers.

Electric two-wheeler manufacturers are constantly working on reducing the price of electric two-wheeler and their batteries by developing low-cost materials and efficient manufacturing methods. Thus, the impact of high prices of electric two-wheelers and batteries on the global electric two-wheeler market is expected to shift from high to low over the forecast period.