India aims to lead global electric two-wheeler exports, spurred by a growing market and government support. Despite low export numbers currently, the industry shows promise, with key players like Ola Electric and TVS gearing up for international expansion. Challenges include subsidy changes and battery imports. Success depends on boosting local manufacturing and innovation. India's strides in electric mobility set the stage for a strong global E2W market presence.
India's electric two-wheeler (E2W) market is burgeoning, yet its export numbers remain modest, accounting for less than 2% of total E2Ws produced. However, Union Transport Minister Nitin Gadkari sees a bright future, envisioning India as a top exporter of E2Ws. With India already excelling in foreign markets with traditional models, the potential for E2W exports is immense. Gadkari highlighted how companies like Bajaj and TVS are already exporting half of their production from India, indicating a promising trajectory for electric vehicles as well.
Despite India boasting the second-largest electric vehicle (EV) market globally, with E2Ws constituting 55% of total EV sales, its E2W export figures pale in comparison to countries like China. In the last fiscal year, India exported a mere 1,609 E2Ws, a stark contrast to China's colossal export numbers.
However, the landscape is evolving rapidly. The market share of electric two-wheelers in India has surged from 0.4% in 2020-21 to 5.4% by early 2023, with projections indicating a further 13% increase in the coming years. This growth is fueled by a dynamic domestic market and the government's initiatives like FAME II and EMPS, which have made E2Ws more accessible and affordable for the masses.
India's prowess in traditional two-wheeler production and exports is well-established, with 15.86 million units produced in FY23. Despite challenges like inflation and currency volatility, India remains a key player in the global two-wheeler market. While exports saw a slight dip in the last fiscal year, a resurgence is underway, with double-digit growth observed from January to April 2024.
The emergence of key players like Ola Electric, TVS Motor, Ather Energy, Bajaj, and Ampere dominating the market underscores India's potential in E2W exports. These companies, accounting for over 75% of sales, are gearing up to tap into international markets, with plans for expansion and new product launches in the near future.
However, challenges loom on the horizon. The phasing out of FAME II subsidies and the introduction of the PM E-DRIVE scheme could impact price competitiveness for manufacturers. Additionally, India's reliance on battery imports poses a significant hurdle, necessitating a robust domestic ecosystem for sustainable growth in the E2W sector.
Looking ahead, India's E2W export prospects hinge on enhancing local manufacturing capabilities for critical components like batteries, motors, and safety technologies. With substantial investments projected in the sector and initiatives like the PLI scheme and state incentives boosting the ecosystem, India is poised to carve a niche in the global E2W market.
While India's E2W industry faces challenges in reducing reliance on imports and fostering a self-sufficient component ecosystem, the country's strides in electric mobility signal a promising future. By leveraging its strengths in traditional two-wheeler exports and embracing innovation, India is set to emerge as a formidable player in the global E2W market, charting a path towards sustainable and efficient transportation solutions.
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