Electric Two-Wheeler Adoption in India Rising, 13% Share Expected by 2026-27: Jefferies

The adoption of electric two-wheelers in India is gradually increasing, with their market share expected to rise to over 13% by 2026-27, according to Jefferies. This is driven by a number of factors, including government incentives, falling battery prices, and growing consumer awareness of the benefits of electric vehicles.

In the financial year that ended in March 2024, the share of electric two-wheelers was at 5%. However, Jefferies expects this to rise to 7% in FY25E, 10% in FY26E, and 13% in FY27E.

The rise in electric two-wheeler adoption is being driven by a number of factors. First, the government is providing a number of incentives to encourage the adoption of electric vehicles. These incentives include subsidies, tax breaks, and free charging infrastructure. Second, battery prices are falling, making electric vehicles more affordable. Third, consumers are becoming more aware of the benefits of electric vehicles, such as lower operating costs and reduced emissions.

Despite the positive outlook for electric two-wheeler adoption in India, there are a number of challenges that need to be addressed. These challenges include the lack of charging infrastructure, the high cost of electric vehicles, and the limited range of available models.

However, Jefferies believes that these challenges are being overcome. The government is investing in charging infrastructure, battery prices are falling, and manufacturers are introducing new electric two-wheeler models. As a result, Jefferies expects the adoption of electric two-wheelers in India to continue to grow in the coming years.

Here are some of the key findings of the Jefferies report:

• The adoption of electric two-wheelers in India is expected to rise to over 13% by 2026-27.
• The government is providing a number of incentives to encourage the adoption of electric vehicles.
• Battery prices are falling, making electric vehicles more affordable.
• Consumers are becoming more aware of the benefits of electric vehicles.
• The lack of charging infrastructure, the high cost of electric vehicles, and the limited range of available models are challenges that need to be addressed.
• Jefferies believes that these challenges are being overcome.
• As a result, Jefferies expects the adoption of electric two-wheelers in India to continue to grow in the coming years.

In addition to the factors mentioned in the report, there are a number of other factors that could drive the adoption of electric two-wheelers in India. These factors include the increasing popularity of ride-hailing services, the growing number of electric vehicle charging stations, and the development of new electric vehicle technologies.

Overall, the outlook for electric two-wheeler adoption in India is positive. The government is taking steps to encourage the adoption of electric vehicles, battery prices are falling, and consumers are becoming more aware of the benefits of electric vehicles. As a result, Jefferies expects the adoption of electric two-wheelers in India to continue to grow in the coming years.

Here are some additional details that you may find helpful:

• The electric two-wheeler market in India is expected to grow at a compound annual growth rate (CAGR) of 38% from 2023 to 2027.
• The total number of electric two-wheelers sold in India is expected to reach 10 million by 2027.
• The most popular electric two-wheeler brands in India are Ola Electric, Ather Energy, and Bajaj Auto.
• The government of India has set a target of 30% electric vehicle penetration by 2030.

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