Every company appears to be working hard to stay afloat in the fast-changing automotive landscape as the buzz surrounding electric vehicles grows in the automotive industry. The two- and three-wheeler segments appear to have prevailed in the EV race in terms of price, despite the fact that electric automobiles have garnered the majority of recent headlines.
The cost of electric vehicles is about 50% greater than that of their gasoline or diesel counterparts, which excludes the majority of buyers from the market. Bicycles, scooters, and autorickshaws, however, do not operate in this manner.
The cost of ownership is 9% lower for an electric bike than for its gas counterpart for a 500 km monthly run. According to Emkay Research, this difference rises to 22% for a 700 km monthly run.
For a monthly mileage of 2,100 km, an electric three-wheeler costs 16% less to own than one with an internal combustion engine, 19% less for a monthly mileage of 2,300 km, and 22% less for a monthly mileage of 2,500 km. Nowadays, e-rickshaws are commonplace throughout the nation and account for 50% of the three-wheeler market.
Despite this, an electric version of a private vehicle has a higher total cost of ownership. The purchase costs for EVs and internal combustion engines are comparable for two-wheelers.
The combination of relatively low daily usage, low energy requirements per kilometer driven, small battery size, and ease of charging without the need for a dedicated charging infrastructure make two- and three-wheelers "more suited for a complete transition," according to the Emkay research report.
Sales of electric two-wheelers increased from 29,982 in January 2022 to 64,363 in January 2023. Within the same time frame, its market share also increased, going from 2.6% to 5.1%. In January 2023, Ola Electric, TVS, Ather Energy, Hero Electric, and Okinawa were the two-wheeler brands that sold the most units.
According to the Federation of Automobile Dealers Associations of India, three-wheeler sales increased from 18,973 in January 2022 to 32,911 in January 2023, and the market share increased from 45.7% to 50% during this time. The top five three-wheeler brands in January 2023 were still YC Electric, SAERA Electric, Mahindra Reva, Dilli Electric, and Mahindra & Mahindra.
With 3,346 units sold in January 2023, private electric vehicle sales increased but remained relatively low in terms of actual volume. The top EV-selling car brands in India in January 2023 were still Tata Motors, MG Motors, BYD India, BMW India, and Hyundai Motors.
"Unlike western countries, which are predominantly dominated by four-wheelers, Indians who are cost-conscious have long selected two-wheelers as their preferred means of transportation. This is due to the ease with which they can be manoeuvred through congested roads, the reduction of carbon emissions, and the improvement in fuel efficiency, according to a report by Redseer Strategy Consultants.
With approximately 400 million two-wheelers on the road, India is now the largest two-wheeler market in the world due to rising urbanization and the need for personal mobility, as well as rising household disposable income, an increase in nuclear families, and easier access to finance. However, gaining scalability in the EV sector depends on affordability.
