India’s electric two-wheeler (E2W) market has crossed a significant milestone in FY25 — with sales surpassing the one-million-unit mark. However, what should have been a cause for celebration is now tempered by the realization that the pace of growth has noticeably slowed. Let’s break down the numbers, understand the market dynamics, and explore what lies ahead for electric mobility in the two-wheeler space.
FY25 Electric Two-Wheeler Sales Snapshot
Total E2W Sales in FY25: 1,024,791 units
YoY Growth: 30.6%
FY24 Sales: ~783,000 units
Market Share of EVs in Total Two-Wheeler Sales: ~5%
While surpassing the million mark is a monumental achievement, the growth trajectory has cooled compared to the scorching 200%+ growth in FY22 and FY23.
What’s Causing the Slowdown?
1. FAME-II Subsidy Revision
The reduction in FAME-II subsidies from June 2023 significantly increased the effective price of electric scooters. For instance:
Ola S1 Pro prices rose from ₹1.25 lakh to over ₹1.45 lakh.
Ather 450X saw a price hike of ₹20,000+ post-subsidy cut.
This affected mass adoption, especially in tier-2 and tier-3 markets.
2. Price-Sensitive Buyers Holding Back
EVs, despite lower running costs, still have higher upfront prices than petrol two-wheelers. This price gap is now wider post-subsidy revision.
3. Infrastructure Still Catching Up
Charging infrastructure, especially in smaller cities, hasn’t scaled at the same rate as EV adoption. Range anxiety and lack of home-charging solutions remain challenges.
🏍️ Top Performers in FY25\
Brand FY25 Sales (Approx.) Market Share
Ola Electric 331,000+ 32.3%
TVS (iQube) 198,000+ 19.3%
Ather Energy 122,000+ 11.9%
Bajaj (Chetak) 108,000+ 10.5%
Hero MotoCorp 91,000+ 8.9%
Ola Electric continues to dominate with aggressive pricing and marketing strategies, while TVS and Ather maintain strong momentum with wider service networks and updated models.
Entry-Level Segment Boom
Companies are shifting focus to affordable EVs. The Ola S1X, Ather Rizta, and Hero Vida V1 are all aimed at first-time EV buyers with sub-₹1 lakh pricing.
Leasing and Subscription Models
Startups and OEMs are offering subscription plans to attract hesitant buyers, reducing upfront cost anxiety.
Localized Battery Manufacturing
With PLI schemes and government initiatives, local battery production is improving. This could stabilize prices in the future.
What Lies Ahead for FY26?
Expected Sales: 1.3–1.4 million units (projected growth: 20–25%)
Focus Areas: Expansion in tier-2 cities, better financing options, and improved battery tech.
Challenges: Maintaining growth without heavy subsidies, ensuring product reliability, and tackling competition from ICE two-wheelers.
Final Thoughts
India’s electric two-wheeler market has evolved from a niche to a mainstream segment. Crossing the 1 million unit mark in FY25 is no small feat, but the slowdown signals that the next wave of growth will require more than just subsidies — it will need affordability, infrastructure, and innovation.
Manufacturers who double down on localization, after-sales service, and affordable pricing will likely emerge as long-term winners in the race to electrify India’s roads.
