NEW DELHI, 28th August: With electric motorcycle adoption struggling in India, Niti Aayog is stepping in to help accelerate progress in what is widely regarded as a sunrise industry poised for explosive global growth.
The government’s policy think tank convened a critical meeting with leading two-wheeler manufacturers, including Hero MotoCorp, Bajaj Auto, TVS Motor, Ola Electric, Ather Energy, and Revolt Motors, to discuss strategies for increasing electric motorcycle penetration. This meeting comes in light of India’s ambitious 2030 electrification targets, which appear to be out of reach without a significant shift in the motorcycle segment.
Currently, motorcycles powered by internal combustion engines account for nearly two-thirds of India’s two-wheeler market, with electric motorcycles accounting for only 0.1 percent. In contrast, electric scooters, which account for the remaining one-third of the market, have achieved approximately 15% penetration.
According to government projections, electric scooters will account for 80% of scooter sales by 2030, with electric motorcycles accounting for only 10%. This would result in 36% electrification of the entire two-wheeler market. However, industry experts believe that this goal will be elusive unless the motorcycle segment begins to electrify on a large scale.
According to an industry source, the meeting’s goal was to explore interventions that could help India realise its electric motorcycle potential. These may include increasing production, introducing new financing mechanisms, and establishing a reliable battery-swapping infrastructure.
“Electrifying motorcycles is significantly more difficult than scooters due to higher expectations regarding power, speed, and range,” said a senior executive from a leading EV start-up. “To match ICE (internal combustion engine) performance, motorcycles require larger batteries, which are difficult to fit into the compact chassis of two-wheelers. A senior government official stated that this leads to increased manufacturing complexity and costs.
Currently, only a few companies in India manufacture electric motorcycles, including Matter, Revolt Motors (owned by RattanIndia Enterprises), Ola Electric, and Oben Electric. Leading players such as Hero MotoCorp, Honda Motorcycle and Scooter India, Bajaj Auto, and TVS Motors have yet to launch electric motorcycles, despite their active investment in electric scooters.
Price sensitivity remains a barrier, particularly in a market where 65 percent of motorcycles sold are in the 110cc class.
While scooter start-ups such as Ola Electric and Ather have gained traction, traditional motorcycle manufacturers have been slow to take an aggressive approach. So far, their strategy has been to act as “fast followers,” taking advantage of strong dealer networks and service infrastructure. This gives them an advantage in scalability if they decide to enter the electric motorcycle market seriously.
At the Niti Aayog meeting, discussions focused on ways to cut costs, innovate with battery technology, and rethink pricing models. “The need of the hour is not only technological evolution, but also policy and financial support to drive consumer adoption,” the government official continued.
India’s electric mobility journey is nearing a turning point. The motorcycle segment, which has previously lagged, is now the next frontier. With the right ecosystem in place, electric motorcycles have the potential to spark the next big leap not only in India but around the world.
