India's Electric Two-Wheeler Market: Rise, Reset and What Comes Next

Summary

As of 2022, India had 263m two-wheeled vehicles on the road, making it the world’s largest two-wheeler market. In terms of annual sales, India has also leapfrogged China. However, the picture changes when we look at electric vehicle penetration in the two-wheeler segment. Annual electric two-wheeler sales in the two countries present a chalk-and-cheese contrast.2022 - Watershed Year in India E-2W MarketIndia’s electric two-wheeler sales surged 305% YoY to ~632k units in 2022, driven by alignment of policy support and market forces. FAME-II subsidies, at times covered up to 40 % of ex-factory price ($150/kWh), were the single biggest catalyst, accounting for an estimated 60–70% of the growth by cutting effective scooter prices 15–20% (a $1.3k e-scooter dropping to ~$1.1k).The impact was amplified by greater model availability from multiple OEMs and improved product features like higher range and connected tech.Breaching One Million SalesIndia’s e-2W market surpassed the one million unit mark, with around 1.15m units sold, up about 33 % YoY from ~860k in 2023. Leading OEMs like Ola Electric, TVS Motor, Bajaj Auto, and Ather Energy reported their best-ever annual e-2W sales, underpinning the segment’s momentum.Region-wise, Maharashtra held the highest share with 18%. Growth reflected maturing supply chains, falling battery prices, and strong urban demand despite FAME subsidy uncertainty.New Heights in 2025In calendar year 2025, India’s e-2W segment achieved a **record retail sales tally of approximately 1.28m units, marking an 11 % YoY increase despite shifts in GST and competitive ICE pricing. Electric two-wheelers accounted for about 56 % of total electric vehicle sales (around 2.27m EVs across segments).This growth comes against the backdrop of a much larger total two-wheeler market of 20.29m units in 2025, where e-2Ws made up roughly 6.3 % of overall sales, a slight increase over the previous year.Competitive LandscapeThe competitive landscape has shifted too: TVS ...