013 – India overcoming challenges brilliantly – Effortless Switching from Gasoline to Electric

013 – Switching from Gasoline to Electric – Mission India to overcome challenges

Yamaha was with its 18 months ago presented electric scooter an important development on the Asian market for electric motorcycles. However, it now wants to catch up to avoid losing future market share. A graphic released by the Honda Motor Company shows the silhouette of two electric scooters and a motorcycle.    

The global market for electric two-wheelers, including scooters, motorcycles, and mopeds, is expected to grow by 35.45% over the next five years, with India playing a key role. In India, the segment of electric bikes is one of the fastest-growing green vehicles. This segment currently dominates the electric two-wheeler market in the country and is expected to continue this trend over the next five years.    

The cost of lithium-ion batteries makes vehicles that run expensive, especially in emerging markets such as India, where the market for electric two-wheelers is growing.    

Here in India

The nascent market for electric two-wheelers in India is based on increased government support for battery-powered vehicles, growing environmental awareness, rising gasoline prices, and strict emission standards.

In 2013, the launch of the National Mission Plan for Electric Mobility 2020 aimed to increase the uptake and production of electric vehicles in the country, with 90% of vehicles using incentives for battery-powered two-wheelers. The rapid roll-out of hybrid and electric vehicle manufacturing under the II + policy, coupled with incentives and local production of battery technology, accelerate this pace.    

For example, the new electric mobility policy announced by the Delhi government last year provides for an additional subsidy of 30,000 rupees for two-wheelers and 15 rupees for electric cars. The policy needs to be revised, said Naveen Munjal, managing director of Hero Electric, FE: “In the second phase of the Fast Adoption and Manufacturing of Electric Vehicles in India (FAME II) program, 10% of registered electric two-wheelers will qualify for incentives up to 20,000 rupees ex-works, and high-speed electric two-wheelers will qualify under the program for incentives.    

A number of start-ups are looking to launch new electric two-wheelers for commercial and passenger use, while major car manufacturers are planning new launches in the electric vehicle sector, making them one of the most active sectors of development in the whole automotive sector even with respect to the job opportunities.

While sales of conventional passenger cars (two-wheelers) fell in FY21 by 9 percent to 13 percent, electric two- and four-wheelers bucked the trend and recorded impressive growth. In 2020-2021, there was a 65 percent increase in registrations of electric two-wheelers, a record, and the market share of these vehicles improved, according to the Vahan Department of Transportation database.    

Experts believe that the largest and most lucrative market for electric vehicles is two-wheelers, as they play an important role in the country’s overall mobility. Low-speed electric two-wheelers which do not require registration with the Indian Transport Authorities are expected to influence the Indian market growth for electric two-wheelers over the forecast period.    

Companies such as Tiger Back Energy, Cotton Greaves (owned by Ampere Vehicles), the Electric Superbike manufacturer Ultraviolet, Revolt of Okinawa, Tork Motors, Hero Electric (Bajaj Scooter), Honda, and others are trying to penetrate the market for electric scooters for passenger transportation while riding giant Ola entered the market earlier this year and the share of mobility startups is increasing.    

This is an important boost for the two-wheeler industry in India, as the Ministry of Heavy Industry (DHI) made important revisions to the FAME II program for the fast adoption and manufacturing of hybrid electric vehicles (FAME II), which will lower the price of electric scooters and motorcycles in India and persuade more drivers to switch from combustion engines to electric vehicles.

We believe that the time has come for the mass production of electric two-wheelers and such initiatives, combined with government awareness campaigns and simple financing conditions by public banks, will bring us closer to the goal of making 30% of the two-wheel market electric within five years.    

Electric two-wheelers address a high level of negative impacts of fossil fuels on air quality, climate, and noise, close the gap in the existing two-wheelers segment, and offer unlimited flexibility in the architecture and integration of emerging smart and connected technologies.

Electric two-wheelers will transform transportation beyond the dreams of Elon Musk with technologies developed by different Technologies, manufacturers, and other pioneers. The electricity and transport sectors are undergoing technological upheaval and change, and the potential of the transition to electric vehicle e-mobility is unlimited.    

India is home to the world’s second-largest motorcycle market, buoyed by the country’s warm embrace of two-wheelers and its growing population of 1.3 billion people. But that is beginning to change in India, where two-wheeled motorcycles account for 76% of all vehicles on the road and account for a whopping 30% of the country’s pollution.    

Unlike scooters, we expect a gradual shift from gasoline motorcycles to electric vehicles by 2025-26. This results in a negative CAGR of 45 percent for the ex-premium motorcycle and two-wheel market in India and a CAGG of 65 percent for the overall market (10.5 percent including an additional 6 million), as the market size leads to the elasticity of demand.

While India sets out its electrification goals and aspirations, which NITI Aayog, the government’s main think tank, calls for, by the end of the decade, 70% of commercial vehicles, 30% of private cars, 40% of buses, and 80% of two- and tricycles will be electric. 

For regular updates, follow us on https://www.facebook.com/pushpak.ventures or visit www.pushpakventures.com or write to us at sachin@pushpakventures.com, +91-8851585984. You can also follow us on our Facebook Page to get regular updates. Join our Facebook community to interact with Industry Experts. Download ARKO from https://bit.ly/3xjcRlk

Leave a Reply

Your email address will not be published. Required fields are marked *