010 – Electric Two Wheelers – Valuable Information on Financing

Electric Two Wheelers
Report by NITI Aayog

What is Current Sales of Electric Two Wheelers?

Sales of Electric Two Wheelers was close to 2250 in Feb 2020 and it increased to 6000+ in Feb 2021 which means growth of more than 2.65 times, an increase of 165%. This sentence has a lot of meanings, increase in effectiveness in government campaigns, increase of faith in two wheelers market, increase in consumer awareness, increase in product quality, and increase in manufacturers penetration in B and C level towns with the network of dealers and distributors.

What are the current challenges of Electric Two Wheelers?

  • Higher cost of these Electric Two Wheelers discourage the buyers due to Non Availability of financing options from Banks and NBFC’s.
  • Less battery life of about 400 charging cycles that helps users to go for around 40,000 – 60,000 kilometres only,
  • High charging time makes a frequent user to opt for petrol vehicle,
  • Non availability of Charging Infra even in the main markets of any city in India,

What are the probable solutions to increase sales of Electric Two Wheelers?

  • Instructions to Banks and NBFC’s to provide financing option as they provide for petrol vehicles with lower interest rates and longer time.
  • Removing the option of LMLA/Lead Acid Batteries and only LI-Ion or LiFePo batteries should be used in Electric Two Wheelers.
  • Eliminating the subsidy from Electric Two Wheelers and consuming the allocated funds in installing Charging Infra at a distance of 3 to 5 km Pan India for Electric Two Wheelers.
  • Bringing down the battery cost less than or equal to Lead Acid batteries by reducing import duties on lithium Ion Cells and encouraging start-ups for installing battery assembly lines for Electric Two Wheelers.

What are the initiatives taken by different stake holders to promote electric two wheelers till date in India?

  • Subsidies offered by Central Government for Electric Two Wheelers.
  • Subsidies offered by different State Governments for Electric Two Wheelers.
  • No road tax on Electric Two Wheelers.
  • Bank Finance by Ujjivan Finance Bank for Electric Two Wheelers.
  • Bank Finance by State Bank of India for Electric Two Wheelers.

The complete report is available on http://www.niti.gov.in/

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Other Useful Links – Electric Two Wheelers

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