According to a CRISIL report, due to a strong increase in the adoption of electric two-wheelers, which is translating into strong sales of e-two-wheeler businesses, electric scooters may become more expensive by ₹45,000 in fiscal 2025, which can be counterbalanced by the Production Linked Incentive (PLI) for EVs.
Due to improved cost economics, the availability of many models, and the feasibility of home-charging alternatives, the rapid adoption of electric vehicles is anticipated to continue.
The steady increase of e-two wheeler enterprises reflects this mindset. On the basis of growing demand in the country, WardWizard, a producer of e-two wheelers named Joy e-bike, recorded sales of 4,450 units in February 2022, a significant increase of 1,290% over February 2021 when the firm sold 320 units of E-two wheelers.
In the 12-month period (January-December) of 2021, overall sales of electric two-wheelers, comprising high-speed and low-speed models, grew by 132% over the same time in 2020.
However, the Crisil research points out that subsidies, particularly the National Electric Mobility Mission Plan’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME) programme and state subsidies have accelerated EV sales (over 20% year-over-year growth in most sectors) on a low foundation in fiscal 2017.
Over the course of the PLI programme, electric scooters could get up to ₹17,000 in incentives per vehicle. This is about 10% to 12% of the electric scooter’s ex-showroom price. If buyers receive 75% of the advantage, the TCA of electric scooters may be equivalent to that of ICE counterparts.