Things You Can Expect In India’s Electric Two-Wheeler Sector In 2022

The demand for electric vehicles especially electric two-wheelers in India is increasing. Apart from this trend, there are a lot more in store for 2022. Some of those emerging trends that are on their way to becoming a reality are as follows -

The Two-Wheeled EV Sales Will Surge More Than Current Numbers

The electric two-wheeler industry in 2022 will witness an incessant increase in sales this year. There are many reasons behind this boost. The top three are as follows -

The first reason is that the price of petrol has breached the INR 100 mark. And it is not stopping there!
The second reason is that the Indian government has doubled the subsidy for EV buyers. Hence, the acquisition cost of EVs has come down significantly. Furthermore, state governments now are also rolling out subsidy schemes for EV adopters.
The third reason is that two-wheeler OEMs have increased the price of two-wheeler offerings by many folds. The margin is more than 20% for some OEMs. Hence, most two-wheeler buyers need to apply for hefty loans to buy a two-wheeler. This is not feasible for many.

Additional Read: Electric Vs Petrol 2-Wheeler - Know Which Is The Best Option

Legacy Manufacturers Will Enter Into The Game

Legacy two-wheeler manufacturers like Bajaj have plans to enter the EV two-wheeler market in full force. Bajaj entered the segment with the Bajaj Chetak Electric.

So will all of this drive sales volumes? Will it also allow the EV two-wheeler sector to flourish in India starting this year?

Absolutely!

The reason is simple – two-wheeler manufacturers that are new in the market face skepticism from buyers. Furthermore, new EV two-wheeler manufacturers often suffer from product, development, and delivery issues.

Legacy manufacturers like Bajaj have deep pockets. Hence they won’t have issues with product development or deliveries. Furthermore, legacy manufacturers like Bajaj have a huge market share and a reputation like no other. Hence, products like the Bajaj Chetak Electric will be successful.

[NOTE - The Chetak Electric is already a hit if one pays close attention to the sales numbers.]

Bajaj is also working with the Austrian brand KTM in a bid to improve the former’s EV department. Both brands will offer EVs in the future that will share vehicle technology and architecture.

It is apparent by now that 2022 - 2023 will be a successful fiscal year for the Indian EV sector.

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There Will Be More Than Ten Percent Increase In Ev Two-Wheeler Options In Dealerships

As per ICRA, by 2025, EV two-wheelers will have a 10% market share in India.

The current annual volumes of all EV two-wheeler manufacturers are (+-) 20 million units. This is estimated to increase by a margin of (+-) 2 million units by 2025.

A spokesperson of Bajaj Auto stated that the transition to EV is a fact in India and it will continue at this pace. The reason is simple; the common person is unwilling to pay excess for a liter of petrol. Furthermore, in the coming months, EV options will be numerous across OEM dealerships in India. This will drive sales and increase profits for OEMs that will offer enough encouragement for investments in EV technology.

India’s EV Charging Infrastructure Will Get A Boost

The demand for EV two-wheelers in India is increasing each month, granted. But the EV charging infrastructure is still in its nascent stage. This will change soon and the changes are already apparent.

For instance, as per researchers, it was estimated that India had only 1800 EV charging stations across the mainland. This number was before March 2021.

Tata Power and Ola Electric recently stepped up their plans to improve their respective EV charging station networks in India. Furthermore, state governments across India are also investing in improving state EV charging networks. Hence, if all goes well, the number of EV charging stations will be more than double 1800 by 2023.

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Conclusion

Another trend change that will boost the Indian EV two-wheeler sector is the newly implemented government subsidies for OEMs. In this context, it is best to take all the information shared in this post with a pinch of salt. There are a lot of variables at play here. Hence, targets may or may not be achieved by EV OEMs. The best possible approach is to wait and let it all play out!

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