Electric Two-Wheelers Growth Landscape in India

India boasts a total e-2W operational capacity of 29,99,570 units as of January, 2025. The capacity has increased from 860,477 units to 1,148,729 units from Dec’23 to Dec’24, witnessing a percentage growth of 33.49 %. Maharashtra is the leading state in e-2W adoption in India & accounts nearly 18.29%. Q4 of CY 2024 saw maximum e-2W adoption of 333,238 units in the country.

Central Government

PM E-DRIVE Scheme has financial outlay of INR. 10,900 crore with the aim of accelerating EV adoption. Scheme period: Oct’2024 – Mar’2026. The Scheme aims to incentivize ~24.79 lakh e-2Ws.

State Government

The Maharashtra Electric Vehicle (EV) Policy 2021 is about to terminate in March’ 2025. Target: 10% EV penetration by Mar’2025 Currently Achieved: 8.40% in total EV penetration 10.24% in e-2W penetration e-2W segment has superseded the set targets.

a. Player wise capacity buildup updates

Honda marks its entry in the EV market with its Activa e and OC1. having 2 swappable e-batteries of 1.5kWh each, going on sale in February 2025. OPG Mobility will be raising INR 400cr, the OEM’s this year’s e-2W target is 45,000 units

b. Merger & Acquisition/Partnership

Tata Power – DDL has signed a MoU with Baaz Bikes to set up EV Battery Swapping Stations in North and Northwest Delhi. The partnership is aimed at promoting commercial gig electric two-wheeler mobility in Delhi.

c. Player wise key market share updates

Bajaj Auto surpassed Ola Electric in December in terms of e-scooter sales and market share. TVS Motor’s vehicle registrations fell almost 37% month-on-month in December, but its market share rose to 23.5%

d. Funding Updates

e-2W startup BGauss raises a funding of INR 161 crores from Bharat Value Fund INR 100 crores CAPEX investment announced by ARAI to boost EV Infrastructure development. ARAI’s planned capex of INR 100 Cr will be for developing advanced testing labs and overall infrastructure in 2025 across the country. It is expected that the advanced battery safety testing lab will be operational by June 2025.

e. Tech/New business model breakthrough

• Ampace, a global leader in lithium ion battery solutions announces its official launch of new E30P battery cell in India. This a breakthrough battery technology that boosts power system, longer battery life & provides enhanced safety. The E30P battery comes in standardized 35205 cylindrical cell size, with a 35 mm diameter& 205 mm height. This size is optimized for e-motorcycles/scooters/maxi-scooters in India
• Urja Mobility & Sieger Technologies collaborate to advance EV battery leasing in India
• Neuron Energy partners with leading OEM to advance e-2W innovation
• PURE EV Joins Pragmatic Design Solutions For High-performance E-Scooters
• Honda opens new R&D centre in Bengaluru for electric two-wheeler development

India’s e-2W growth projection for CY’2025 As of January 25, 2025, India’s electric two-wheeler (e-2W) fleet has reached 2.99 million units (29.9 lakh). In CY 2024 (January–December), India added 1.14 million units (11.4 lakh), marking an average monthly addition of 95,754 units. This represents a CAGR of approximately 22.09% in the monthly average since CY 2022. Assuming a similar growth trajectory for CY 2025, India’s e-2W fleet could grow by 1.4 million units (14 lakh), reaching 4.4 million units (44 lakh) by December 2025.

As of January 25, 2025, e-2W sales for the month stand at 72,530 units, averaging 2,901 units daily. By month-end, sales are projected to reach approximately 89,931 units. If this becomes the average monthly sales for CY 2025, the total annual addition could amount to 1.07 million units (10.7 lakh).