Over 11 Lakh Electric Two-wheelers Sold In FY25, But Adoption Slows Down

The Indian electric two-wheeler market has crossed the million annual sales (or 10 lakh units) mark in FY25, showcasing the growth of the cleaner mobility technology. According to the Vahan data, there were 11,49,307 electric two-wheelers sold in the fiscal year that just ended, a performance which is 21 percent better than the previous one. 

And Bajaj has emerged as the new monthly champion with TVS solidifying its second place status. However, it is still Ola that managed to have the largest market share in FY25. Despite the massive issues that have been publicised to a great extent, Ola enjoys a market share of 30 percent in the EV two-wheeler business. TVS and Bajaj have caught up and will look to assert their dominance in the upcoming FY as the two ended the year with 21 and 20 percent market shares. 

Ather remains fourth with the launch of the Rizta as well as updates to the 450 platform helping the brand’s cause. As a result, Ather has improved its annual sales performance by 20 percent. 

What is a concern, though, is that the electric space isn’t rapidly booming. The growth from FY24 is 6 percent compared to 5.4 percent from earlier. With subsidies drying out and upfront price gap with ICE models still remaining a concern, the challenge for electric players becomes even harder. 

We might not see a lot of new products from these four electric players this year too. With a lot of choices in the market, it would be time for these companies to focus on increasing their presence amidst the depleting subsidy allocation. 

We will also get to see how Suzuki and Honda play their cards in the electric space this coming year, but not much is expected to shake up. Honda’s weird subscription policy, limited availability and far from ideal specs for its electric scooters is going to make it tough for the brand to have just as much success in electrics as it has in ICE. In that regard, Suzuki has a more traditional approach and might just fare better with the e-Access. 

Hence, the upcoming fiscal year will be something that electric players will seek to rejig their model line-ups and maybe even trim some portfolios down to focus on a more cost conscious strategy.