Steep price cuts and the launch of affordable models by companies like Ola Electric, Ather Energy and Bajaj Auto-owned Chetak Technology have helped narrow, or even bridge, the gap between the prices of battery-powered and petrol-run two-wheelers. Industry experts expect the increasing affordability to quicken the adoption of electric two-wheelers in India.
While sales have been surging and are expected to be around 850,000 units in fiscal 2024, electric two-wheelers still account for just 4.5% of the market. The main challenges to adoption of this cleaner mode of mobility have been higher acquisition cost compared with petrol-powered models and inadequate charging infrastructure.
Evolving pricing strategies and increasing focus on affordability and accessibility, along with government initiatives towards developing charging infrastructure, are expected to further boost the sales of electric-two wheelers, said Ravi Bhatia, president of automobile consultancy firm Jato Dynamics.
Cheaper batteries have also helped companies lower their vehicle prices. Tata Motors, the biggest electric passenger vehicle maker in the country, last week cut the prices of its two EV models citing a reduction in the cost of batteries.
The Ola 3kwh S1X+ is now retailed at ₹85,000, while the Honda Activa costs ₹76,000-90,000.
Ola Electric, the largest electric two-wheeler company by volume, has reduced the prices across its S1 scooter portfolio, with the steepest being on the entry-level S1X+. This price cut, and the availability of models meeting different range requirements and price points, will help break the barriers to EV adoption, a company spokesperson said, adding: “We are confident that customers will now have no reason to buy an ICE (petrol-run) scooter.”
Ather Energy has cut the price of its entry-level 450S scooter by ₹20,000 last month. The model is available at a starting price of ₹1,09,000 in Bengaluru and ₹97,500 in Delhi. “We have reintroduced our entry-level scooter, which makes for a strong value proposition, bringing it at a more accessible price point,” said Ravneet Singh Phokela, chief business officer at Ather Energy, which is also opening more retail outlets.
Last month, Bajaj Auto‘s electric vehicle unit launched a refreshed Chetak scooter, in two versions priced at ₹1.15 lakh and ₹1.35 lakh.
Legacy players gaining market share
Electric two-wheelers like Honda Activa Electric, Eko Tejas’ E-Dyroth, and Gogoro 2 series amongst others which are likely to be launched soon, are also likely to help drive demand.
Meanwhile, legacy players such as TVS Motor and Bajaj Auto have been gaining market share in the electric scooter space through their wide distribution network, even as the share of companies making only electric two-wheelers has been shrinking in the fast-growing market.
According to data from the Vahan portal of the government, electric two-wheeler companies sold 81,608 units in January 2024, up 26% from a year earlier and 8% more than the previous month.
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