India’s electric vehicle market continues to be driven by electric two-wheelers (E2Ws), with industry analysts highlighting their pivotal role in accelerating electric mobility adoption across the country. A recent assessment by Capgemini underscores that E2Ws are expected to lead EV growth from 2026 onward, buoyed by rising consumer demand, expanding infrastructure, and evolving business models tailored to the segment.
The report notes that while passenger EV sales are gradually increasing, two- and three-wheelers remain the most accessible and high-volume sectors in India’s EV transition. Two-wheelers, in particular, are popular among urban commuters and delivery fleet operators due to their cost advantages, ease of use, and lower operating expenses compared to internal combustion engine alternatives.
A central theme emerging from the analysis is the critical need for battery localisation — the domestic production of key battery components, especially cells. Batteries constitute a substantial portion of total EV manufacturing costs, and reliance on imports has kept prices high. Capgemini’s insights suggest that increasing local cell manufacturing capacity could significantly improve profitability for OEMs and reduce dependency on foreign suppliers.
To unlock greater value within the EV supply chain, manufacturers are exploring innovative business strategies such as battery leasing, swapping services, and subscription models. These approaches aim to lower upfront purchase costs for buyers and spread battery costs over time, making E2Ws more affordable and competitive with petrol scooters.
Industry experts believe that strengthening domestic battery production not only supports cost competitiveness but also aligns with national initiatives like Make in India and broader goals for energy security. By building robust local supply chains, India can foster technology leadership and enhance export potential for EV components in global markets.
The electric two-wheeler segment’s continued growth is also expected to spur ancillary infrastructure development, including charging stations and battery exchange networks, which together form the backbone of a sustainable and scalable EV ecosystem. As policymakers and industry stakeholders intensify their focus on localisation and innovation, India’s journey toward widespread electric mobility is gaining momentum.
