A notable trend toward electric vehicles is poised to revolutionize the worldwide two-wheeler (2W) market. Though estimates for 2024 show a significant shift—India is expected to surpass China as the top 2W market—the global 2W market grew by less than 1% YoY in 2023. Growing urbanization, heavy traffic, and the growing popularity of two-wheelers for short commutes are the main causes of this growth.
The electric two-wheeler (E2W) market is expected to increase significantly; by 2024, battery-powered 2Ws are expected to account for more than 25% of all 2W sales. Presently, China’s leading companies in the E2W sector, like Yadea and AIMA, account for more than 70% of worldwide sales. India’s noteworthy breakthrough into the E2W industry is being marked by remarkable advancements by Indian firms such as Ola Electric, TVS Motor, and Ather Energy.
Forecasts indicate that by 2030, the E2W market would account for 44% of worldwide 2W sales, with cumulative sales expected to surpass 150 million units between 2024 and 2030. The adoption of cutting-edge digital instrument clusters by 2W producers and the entry of new ecosystem participants to facilitate electrification and connectivity are two further factors driving this expansion.
Traditional 2W manufacturers encounter opportunities as well as obstacles when they cautiously enter the E2W industry. They may effectively compete in this changing market by utilizing their vast distribution networks and R&D capabilities.
