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The Government of India wants sales of electric vehicles (EV) to reach 30% market share for private cars, 70% for commercial vehicles and 80% for two-wheelers by 2030. By far, two-wheelers are India's dominant mode of transport and its industry leader. With residents of Mumbai losing 121 hours and Bengaluru and New Delhi losing 110 hours stuck in traffic each year (according to TomTom data), two-wheelers provide an easier way to navigate India’s congested roads.
India’s Federation of Automobile Dealers Associations (FADA) witnessed a threefold growth in EV motorcycle sales from 134,821 in 2020/21 to 429,217 units in 2021/22, signifying a major ascent in coming years. India's two-wheeler market as a whole (ICE and EV) reached a volume of 15.2 million units sold in 2021. IMARC Group, a public affairs consultancy, expects the market to reach 42.2 million units by 2027, exhibiting a compound annual growth rate (CAGR) of 18.6% from 2022 to 2027.
With growing concerns around vehicle emissions, consumers are increasingly attracted to electric two-wheelers (E2W) due to their lower environmental impact, highlights the International Institute for Sustainable Development (IISD). Statistics from IISD show that almost 97.5% of all EVs sold in India were E2Ws.
Anticipating this trend, the Technology Information, Forecasting, and Assessment Council (TIFAC) and the apex public policy think tank of the Government of India, NITI Aayog, have developed a tool for analysing the future penetration of E2Ws. Under an "optimistic scenario," the two-wheeler market will be fully electric by the financial year 2026-27.
