What You Need to Know About Electric Scooter Market in India: The On-Set and Key Drivers

Scooters with green registration plates are making their presence felt in recent years. Earlier, the success of e-scooters was a big question hanging in front of automotive players and the common people. However, the cloud has parted and we can witness the sale of e-scooters slowly picking up pace in the Indian market. It reflects in the year-on-year sales growth of a gigantic 225% of e-scooters. Some of the top electric scooter manufacturers, including TVS Motors, have clocked in record numbers of sales in the previous year. As we write this, bookings for electric scooters are soaring, with a record high of 8.2 to 9.2 million units expected by the end of FY30.

Removable Battery Technology: Paving the Path of Scooter Electrification

Some of the early discussions about electric scooters revolved around a lack of charging infrastructure. For this, electric vehicle manufacturers came up with a solid answer with removable battery technology. It solved the issues of a lack of charging infrastructure (an issue that was present in the initial stage) and anxiety around the range of e-scooters. Removable battery technology has accelerated the speed of vehicle electrification.

Demand for Last Mile Logistics

One of the key drivers of increased demand for electric scooters has to be a large number of bookings from last-mile delivery firms. As electric scooters require little maintenance and are environmentally friendly, courier services and delivery companies have placed large bookings both online and offline. Some of the best e-scooters have an excellent range that is suitable for B2B or B2C businesses.

Government Support to the EV Industry: Subsidies and Regulatory Policies

Another big impact comes from the support of the government. The Indian government is offering subsidies and has released regulatory policies to encourage the purchase of electric scooters. Electric scooter buyers can benefit from various initiatives such as tax exemptions, purchase rebates, and financial incentives. This is done to curb environmental pollution and achieve greener mobility in the future.

Low Cost of Maintenance: A Boon for the Common Man

Buying a vehicle comes with a huge cost attached to it, and the cost of ownership further decreases its affordability. When a common man is electric scooter booking online, they are looking at the overall cost of ownership. Electric scooters have a low cost of maintenance and do not require fuel refills, which further brings down the cost. It is one of the key drivers for the success of e-scooters in India.

Lithium-Ion Battery: The Demand Generator

Battery costs account for the majority of the price of electric scooters. E-scooters equipped with lithium-ion batteries are demand generators. This is due to the fact that the price of lithium-ion batteries has dropped dramatically over the last decade (30% annually) and is expected to continue to fall in the coming years. This means electric vehicle affordability is going to increase for the masses in the future. So, the common folks are in for a great deal.

One cannot deny that the series of launches of electric scooters signifies that they are the future of the two-wheeler market. The ones who are investing in this green-plated vehicle are in for a great deal and will get the first-buyer advantage.