ELECTRIC
2-WHEELER
MARKET
INDIA
november 2022

Lead Sponsor Associate Sponsor

  

JMK Research & Analytics is a boutique consultancy for all kinds of research and advisory
services for Indian and international clients focusing on Renewables, Electric mobility, and Storage
markets. We employ our interdisciplinary team, strong industry network, existing databases as well as
vast project experience in the Indian power sector to create substantive business value for our clients.
Our subscribers include equipment suppliers, investment agencies, multi-lateral and bilateral agencies,
project developers, government authorities.

Authors: Jyoti Gulia, Neha Gupta, Akhil Thayillam, Nagoor Shaik

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Copyright (c) JMK Research & Analytics 2022

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Disclaimer:
The presentation of the materials contained in this report is of a general nature and is not intended to
address the requirements of any particular individual segment or entity. JMK Research & Analytics does
not guarantee the accuracy or completeness of information nor does it accept responsibility for the
consequence of its use.

2
2
  

CONTENTS
Executive Summary | 6

Sales Trends | 7 YEAR-WISE | 7

STATE-WISE | 10
PLAYER-WISE | 10
Market Share of OEMs in High-speed Segment | 10
Leading OEMs in Low-speed Segment | 12

New Product launches | 13 New launches | 13

High-speed E2W | 14
Low-speed E2W | 15
Product Launches vis-à-vis E-bike vs. E-scooter | 15
New Entrants in E2W Market | 16

POlicies and regulations | 17 Central-level | 17

FAME 2 Budget Allocation Status | 17
Others | 20
State-level | 22

Equity Investments | 24

Challenges | 26 Retail Financing | 26

E2W Battery Fire Incidents | 26
Supply Chain Constraints | 26
Subsidy-related Issues | 27
Delay/Halt of Subsidy Disbursal | 27
Subsidy Misutilization | 27

CXO survey | 28

3
  
Executive Summary
Torch bearer of EV revolution in India, the Electric
2-wheeler industry accounted for 55% of the total
EV sales in FY2022 alone.
• The overall E2W sales in India during the first
half (H1) of FY2023 was about 4.56 lakh units
which is more than twice the sales in H1 of
FY2022. During the same period, the sales of
high-speed (HS) E2W was more than 65% of
the overall E2W sales1.
• During H1 FY2023, Maharashtra recorded the
highest HS-E2W sales at 53,043 units followed
by Karnataka (42,371 units)and Gujarat (32,414
units).
• Considering the H1 FY2023 sales in E2W-HS
segment, Okinawa emerged as the leader with
sales of 53,550 units followed by Hero Electric
(49,484 units) and Ola Electric (48,015 units).
The combined HS sales of the top 10 OEMs in
H1 FY2023 have already surpassed their sales
in FY2022.
• During the 18-month period between April 2021
and September 2022, as per JMK Research
estimates, more than 4.6 lakh units of lowspeed
(LS) E2W were sold pan-India.2
• As per JMK Research estimates, the next half
of FY2023 i.e., H2 FY2023, will witness overall
E2W sales of ~7.3 lakh units.
• Furthermore, we expect the overall E2W
market to reach 67.14 lakh vehicles by FY2027.
• An analysis of new products launched
indicates that 54 new lithium-ion battery-based
E2W models were launched in India from
January to October 2022. Of this, 44 were HS
models.
• 12 E-bikes were launched between January
2022 and October 2022. Their top speeds range
from 65-180 kmph whereas the maximum
1. E2W with speed of more than 25 kmph
2. E2W with speed of less than or equal to 25 kmph
6
Executive Summary
battery range of these E-bikes vary between
100 km and 200 km.
• 5 new-entrant brands/OEMs launched 10 new
models in 2022 year-to-date (YTD).
• E2Ws account for about 90% i.e. ~4.2 lakh units
of the FAME3-2 subsidized EVs sold until 11th
July 2022, signifying a gap of 58% from the
Sales Trends
FAME 2 sales target (10 lakh units).
• 20 OEMs/brands have E2W models with active
FAME 2 certification. The L1 category (i.e.,
2Ws with top speed not exceeding 45 kmph)
includes 29 models across 12 OEMs.
• The L2 category (i.e. 2Ws with top speed over
Product Launches
45 kmph) includes 15 models across 8 OEMs.
New
• Also, over the course of last one year, the
government undertook new initiatives bearing
an impact on the E2W market as well. These
include the Production-linked Incentive (PLI)
Scheme for automotive sector (INR25,938
crore) and the PLI scheme for Advanced
Chemistry Cell (ACC) (INR18,100 crore).
Furthermore, the central government issued
Regulations
Policies &
critical notifications vis-à-vis new guidelines for
battery swapping and battery safety norms.
• So far, 25 states or union territories (UTs) have
either issued draft or implemented their own
EV policy.
Investments
• The total volume of investments made in
the Indian E2W market so far have been
~INR14,000 Crore. In H1 FY2023 (April to
September 2022) alone, investments to the
tune of ~INR3,844 Crore were injected into the
E2W market.
• The Indian E2W market, though anticipated
to ride high over the long-term, still needs to
Challenges
overcome several challenges in terms of the
inadequacies and/or inefficiencies of different
support systems required in the EV ecosystem
viz. retail financing, supply chain, and timely
disbursal of government subsidy.
  

Sales Trends

Executive Summary
India has been witnessing tremendous EV sales growth during the last 3-4 years. E2W segment
specifically is considered to be driving this growth now, accounting for 55% of the total EV sales in FY2022,
against a share of 32% in FY2021. The sales of HS E2W is now more than the sales of electric three-
wheeler (E3W) passenger segment, a trend which has witnessed reversal since FY2022.

Year-wise

Sales Trends
Over the last four fiscal years (FYs) i.e., FY2019 to FY2022, India recorded total sales of ~10 lakh units of
E2W3 . This includes the sales of LS and HS E2Ws, selling about 6.5 lakh and 3.5 lakh units respectively.
The overall E2W segment grew at a compound annual growth rate (CAGR) of 71% over this four-year
period. At the segment-level, while the LS segment grew at a CAGR of 45%, the sales in the HS segment
surged by more than 2x the rate of LS (115% CAGR). This trend can also be witnessed from the sales of
HS-E2W during H1 FY2023 wherein HS-E2W already accounted for more than 65% of the total E2W sales.

Product Launches
New
Figure 1: Breakup of HS- and LS-E2Ws

HS-E2W %Share of HS-E2W in Total E2W Sales

6,00,000 LS-E2W 80%
67%
70%
5,00,000
Number of Units Sold

% Share of HS-E2W
60%
4,00,000 45%
50%

Regulations
Policies &
3,00,000 40%

24% 30%
2,00,000 20% 19%
20%
1,00,000
10% Investments

- 0%
1)
1

H
0

FY2019 FY2020 FY2021 FY2022 3(

H1 FY2023
9

02

02
02
01

2
2

20
2
2
2

FY

FY
FY
FY

FY
Source: Vahan Dashboard, Telangana RTO, Industry Interviews, JMK Research
Note: LS-E2W represents E2W with speed of more than 25 kmph; HS-E2W represents E2W with speed of less than or equal to 25
kmph. HS-E2W Sales figures represent E2Ws registered across 1,377 RTOs in 35 states/ UTs

As can be observed from figure 1 above, FY2022 has been the most significant year in terms of E2W sales
in India. Further, during the first half of FY2023 (i.e., from April 2022 to September 2022), the overall E2W
sales in India was about 4.6 lakh units, more than double the sales in H1 FY2022.
Challenges

Internal Combustion Engine (ICE) - about E2W played a significant role in the exponential growth of
HS-E2W sales, primarily over the last 1.5 years. The general 2W consumer preference has been rapidly
tipping towards E2W owing to economic factors. The implementation of BS64 emission norms for all

3. Vahan Dashboard, Industry Interviews, JMK Research

4. Bharat Stage 6 (equivalent to EURO 6 norms applied in European countries) is the most advanced emission standard for automobiles in India. An
emission standard sets the maximum permissible levels for pollutants that a motor vehicle exhaust can emit. 7
5. ICICI Lombard, BS6 Norms and Their Impact on the Two-Wheeler Industry, February 2021
  

motor vehicles from 1st April 2020 mandated Internal Combustion Engine (ICE)-2W OEMs to bring

Executive Summary
significant changes in the engine technology. This shift to BS6 norms led the leading mandated ICE-2W
brands to hike the on-road prices of bikes and scooters by 10-15%5 . This, along with the surging petrol
prices, resulted in drastic decline in the demand for ICE-2W in India. Thus, substantial increase in the total
cost of ownership (TCO) of ICE-2W became a key passive driver for the E2W sales growth.

As per JMK Estimates, the next half of FY2023 i.e., H2 FY2023, is likely to witness overall E2W sales of
~7.3 lakh units. The share of LS-E2W in the overall E2W sales is expected to decline unabatedly to reach
less than 25% share by FY2027. The majority of the existing E2W manufacturers moving towards the
manufacture of HS E2W and the government-bound crackdown vis-à-vis LS norms are some of the key

Sales Trends
reasons for this projected evolution. The Centre, for instance, recently urged states to crackdown on LS
E2W manufacturers who take go-ahead from testing agencies by complying with LS norms for their E2Ws
of 30 minutes power of less than 0.25 kW and having maximum speed of up to 25 km/hr but then flout
rules by fitting the same vehicles with higher capacity batteries, offering these vehicles at the speeds
of 40-50 km/hr. This poses a huge risk to the end-users. Further, the Ministry of Road, Transport, and
Highways (MoRTH) has also cautioned state governments about these higher battery capacity electric
vehicles that are evading checks under the garb of low-speed ones. These vehicles as per norms are not

Product Launches
required to take type approvals, insurance, and mandatory display of number plates.

New
JMK Research further estimates the overall E2W market to witness sales of 67 lakh vehicles annually by
FY2027. As per these estimations, the CAGR of E2W sales from FY2022 to FY2027 is expected to be about
60.5%. This translates to E2W accounting for more than 38% of the overall 2W sales by FY2027 against
the current share of 5%. In fact, from our E2W CXO survey, we could gather that 36% of the respondents
also estimate this share to be more than 30%. However we estimate this rise to be leaner in the coming
1-2 years as the HS-E2W growth is likely to be restricted due to stricter norms imposed by the central
government and more stringent validations as follows:

Regulations
Policies &
a. The Ministry of Heavy Industries (MHI) announced a list of safety tests that will be mandatory for
electric vehicles manufacturers from April 2023 to receive subsidies under various EV promotion
schemes including FAME 2.
b. Crackdown on electric two-wheeler companies that allegedly did not comply with the requirement
for localisation of components and hence suspension of incentive payment to the likes of Hero
Electric and Okinawa. In addition, companies including Greaves Cotton’s Ampere, Rattanindia’s
Investments

Revolt, Okaya, and Jitendra EV have to face an audit by ARAI (Automotive Research Association of
India) to check if they meet the required level of localisation under the FAME 2 scheme.
Nevertheless, the massive growth in E2W sales, as evident from the sales during the last 1.5 years, is
here to stay and projected to contribute to more than 70% of the overall EV sales during the analysis
period of FY2022-FY2027.
Challenges

8
  

Figure 2: E2W Market Projections

Executive Summary
Annual E2W Sales 38.65%

%share of E2W in total 2W Sales

80,00,000 %Share of E2W in Total 2W Sales 45%
Number of Registered Units

70,00,000 40%

60,00,000 35%
4% 26.50%
0.5 30%
50,00,000
R =6
40,00,000 C AG 18.12% 25%
20%
30,00,000 11.84%
15%
7.16%
20,00,000 5.13% 10%
0.02% 0.72% 0.61% 1.20%

Sales Trends
10,00,000 5%
0 0%
18

e
02

02
01

7
02
20

02

02
02

02

02
2
2

2
2

FY
FY

FY

FY

2
2

2
FY

2
FY

FY
FY

FY

FY
o
pt
U

Source: Vahan Dashboard, Telangana RTO, Industry Interviews, JMK Research

Product Launches
Note: LS-E2W represents E2W with speed of more than 25 kmph; HS-E2W represents E2W with speed of less than or
equal to 25 kmph. HS-E2W Sales figures represent E2Ws registered across 1,377 RTOs in 35 states/ UTs

New
Regulations
Policies &
Investments
Challenges

9
  

State-wise

Executive Summary
With regard to the HS-E2W segment, nearly half of the country-wide sales over the past four fiscal years
(FY2019 to FY2022) have been reported across three key states of Maharashtra, Karnataka, and Tamil
Nadu. However, during H1 FY2023, Maharashtra recorded the highest HS-E2W sales at 53,043 units
followed by Karnataka at 42,371 units and Gujarat at 32,414 units.

Figure 3: HS-E2W Sales for Top 10 States

Sales Trends
60,000

FY2019 FY2020 FY2021 FY2022 H1 FY2023

50,000
Number of HS-E2W (in units)

40,000

30,000

Product Launches
20,000

New
10,000

0
Maharashtra

Karnataka

Gujarat

Tamil Nadu

Telangana

Rajasthan

Kerala

Delhi

Odisha

Uttar Pradesh

Others

Regulations
Policies &
Source: Vahan Dashboard, Telangana RTO, JMK Research
Note: Sales figures represent E2Ws registered across 1,377 RTOs in 35 states/ UTs; Others include Haryana, Punjab,
and rest other 23 states
Investments

Player-wise

i. Market Share of OEMs in High-speed Segment

The top 10 OEMs, from FY2019 to FY2022, accounted for more than 90% share of the total HS-
Challenges

E2W sales. While traditionally, the market has been dominated by the likes of Hero Electric,
Okinawa, Ampere, and Ather, the last 1.5 years have witnessed entry of players like Ola (which
has become one of the market leaders) and Okaya (which has entered the top 15 club already).
Interestingly, Hero Electric and Okinawa are the only two players that have recorded average
annual sales of 10,000+ units over the last 4 consecutive FYs (2019 to 2022) and Hero Electric

10
  

became the only OEM in FY2022 that crossed the 1,00,000 HS-E2W cumulative sales mark for

Executive Summary
the last 4 years combined.
Considering the sales during 18-month period between April 2021 and September 2022, Hero
Electric (1,18,893 units), Okinawa (1,00,826 units) and Ampere (67,801 units) are the top three
players in the E2W-HS segment. And in H1 FY2023, Okinawa emerged as the leader in the E2W-
HS segment with sales of 53,550 units. It was followed by Hero Electric (49,484 units) and Ola
Electric (48,015 units). Further, the combined sales of the top 10 OEMs in H1 FY2023 have already
surpassed their sales in FY2022.

Sales Trends
Figure 4: OEM-wise Distribution of HS-E2W Sales

80,000 FY2019 FY2020 FY2021 FY2022 H1 FY2023

70,000
Number of HS-E2W (in units)

60,000

50,000

Product Launches
40,000

New
30,000

20,000

10,000

-
wa

ic

ic

re

lt

s
ja
he

er
TV

in
vo

rE
tr

tr

pe

Ba
na

th
nl
At
ec

ec

Re

Pu
Am

O
ki

Be
El

El
O

la
o
er

Regulations
O

Policies &
H

Source: Vahan Dashboard, JMK Research

Note: Sales figures represent HS-E2W (E2W with speed of more than 25 kmph) registered across 1,377 RTOs in 35
states/ UTs

The leading OEMs’ strong distributor network, encompassing not just the metro cities but also Tier-I,
Tier-II, and rural regions of the country and introduction of new and improved models have been the key
Investments

catalysts for this sales boost.

Challenges

11
  

ii. Leading OEMs in Low-speed Segment

Executive Summary

During the 18-month period between April 2021 and September 2022, as per JMK Research
estimates, more than 4.6 lakh units of LS-E2W were sold pan-India. Other than the traditional
HS-E2W bigwigs like Hero Electric, Ampere, and Okinawa, there exists a huge list of OEMs
which have been in the manufacture of LS-E2Ws only. Some of these players however have
plans to enter the HS-E2W segment once they achieve scale with their current manufacturing
operations.

Sales Trends
Figure 5: OEM-wise Distribution of LS-E2W Sales

35,000
30,000
25,000
FY2022

20,000
H1 FY2023
15,000

Product Launches
10,000

New
5,000
-
Joy e-bikes

Hero Electric

Okinawa Autotech

Ampere

Batt:RE

e-Ashwa Automotive

Mantra E-Bikes

Cosbike

Regulations
Policies &
Source: Industry Interviews, JMK Research
Note: The above chart doesn’t represent the overall market size of unregistered E2Ws (E2W with speed upto 25 kmph).
The % share is indicative of only those players which have shared their data with JMK Research. Unregistered E2W
sales of Hero Electric, Okinawa Autotech, and Ampere Vehicles are estimated by JMK Research basis Company Press
Releases and Industry Interviews.

Investments
Challenges

12
  

New Launches

Executive Summary
From January to October 2022, 54 new lithium-ion battery-based E2W models were launched by 31
companies.

Figure 6: Number of Models vis-à-vis Different Categories of Range and Top Speed

35

Sales Trends
32
30 27
25
Number of Models

20
16
15

Product Launches
10 8 7
6 5

New
5 3

0
50-100 101-150 151-180 >180 Upto 25 26-50 51-100 >100
Range (in km) Top Speed (in kmph)

Source: JMK Research

Note: The above chart includes data for 52 models only as max. range and top speed for 2 other models introduced
are not available.

Regulations
Policies &
Of the newly launched E2W products, 44 are HS models (whose top speed is greater than 25 kmph). In
terms of maximum battery range (i.e., maximum distance that an E2W can travel in a single charge), 16
models launched in 2022 YTD have a range up to 100 km; 27 models (~50%) have a range between 101-
150 km; and 9 models have more than 150 km range.
Investments

New launches
The 54 models launched during the first 107 months of 2022 have prices in the range of ~INR 50,000 – INR
250,000. The maximum battery range of these vehicles lie between 65-220 km whereas their top speeds
range from 25-180 kmph.
Challenges

7. 1st Jan – 14th Oct 2022

13
  

i. High-speed E2W

Executive Summary
For the new HS models launched in 2022 YTD, the price range is from ~INR 80,000 to ~INR
250,000. The battery range for this set of E2W varies from 80-220 km. Interestingly, Komaki is
the only OEM that has launched its model (Komaki Venice Eco) with the lowest price and also
another model (Komaki Z DT 3000) with the highest range.
Meanwhile, Komaki Ranger is the model with the highest top speed (180 kmph) among all the
models launched in 2022 YTD.

Sales Trends
Figure 7: Price vs. Battery Range vs. Top speed of New HS-E2W Models (Launched between January 2022 and October 2022)

2,20,000 Eveium

Eveium 80-175
2,00,000
Ignitron
1,80,000 Ignitron Komaki

Product Launches
Hero
PURE Ather

Speed (Kmph)
1,60,000 Eveium Hero
Price (INR)

New
Evtric
Tork Komaki
85-50
1,40,000 Hop Ola
Komaki
Joy
1,20,000 AMO Ignitron
Poise
Atumobile
TVS Okinawa Oben 49-30
1,00,000 iVOOMi
Batt:RE
80,000 Kinetic

Regulations
Greta BGauss

Policies &
Benling

60,000
70 90 110 130 150 170 190 210 230
Range (Km)

Source: JMK Research

Investments

Note: Only E2W models whose India launch was between 1st Jan - 14th Oct 2022 have been considered.
Challenges

14
  

ii. Low-speed E2W

Executive Summary
The prices of the 8 LS-E2W launched in 2022 lie in the range of ~INR 50,000 to ~INR 83,000.
Notably, the variation in the battery range of this set of vehicles is very high, ranging from 65-
160 km. However, 5 out of the 8 LS models have less than 100 km range (as can be observed
in figure 7 below). The model with the highest battery range (160 km), out of the 8 LS-E2Ws, is
Crayon Envy priced at INR 64,000.

Figure 8: Price vs. Battery Range of New LS-E2W Models (Launched between January 2022 and October 2022)

Sales Trends
180

160 Crayon
Max. Range (km per Charge)

Odyssey
140

Product Launches
120

New
100

Hero
80
GT
60
45,000 55,000 65,000 75,000 85,000

Ex-Showroom Price (INR)

Regulations
Policies &
Source: JMK Research
Note: One LS model has not been represented in the above figure due to lack of requisite data. Only E2W models
whose India launch was between 1st Jan - 14th Oct 2022 have been considered.

Product Launches vis-à-vis E-bike vs. E-scooter

Investments

Of the 31 brands/OEMs that have launched new E2W products in 2022 YTD, 9 have launched E-bikes and
12 models launched by these 9 brands have top speeds between 65-180 kmph. The maximum battery
range of these E-bikes, on the other hand, vary between 100 km and 200 km. Komaki’s Ranger E-bike
offers the best battery range (200 km) and top speed (180 kmph) among the 9 new E-bikes. Oben Rorr
also offers the highest battery range. Notably, Rorr is also the most affordable E-bike in this group.

Figure 9: New E-Bikes Launched in India in 2022 YTD

Challenges

15
  

Meanwhile, 23 OEMs introduced E-scooters in India in 2022 YTD. A total of 42 E-scooters were launched

Executive Summary
by them. The top speeds of these scooters range from 25-116 kmph and the maximum battery ranges of
these E-scooters vary between 65 km and 220 km. Ola S1 Pro offers the highest top speed of 116 kmph
whereas Komaki Z DT 3000 offers the best battery range of 220 km.

New Entrants in the E2W Market

Sales Trends
It is worth noting that there are 5 new-entrant brands/OEMs that have launched one or more models in
2022 YTD. These 5 combined have launched 10 new models. Moreover, all the models launched by these
new entrants are HS scooters.
Considering the company profiles of the 5 new entrants (see table below), we can observe a variety of
industry backgrounds – E2W Manufacturing (Ellysium Automotives and Ola Electric), Traditional (ICE) 2W
Manufacturing (Hero MotoCorp), Electrical & Civil Project Developer (Onix), and Automotive & Electrical
(Nisiki Technologies).

Product Launches
New
Table 1: New Entrants in the Indian E2W Market

Company &
Brand E2W Models
Company Profile
• Comet
Ellysium Automotives
• Czar
• Auto arm of UAE-based META4 Group
• Cosmo

Regulations
Policies &
Hero MotoCorp
• VIDA V1 Max
•
Multinational motorcycle and scooter
• VIDA V1 Pro
manufacturer

Ola Electric
• S1 Pro (sales started in Dec 2021)
•
E2W manufacturer and sustainable
• S1 (sales started in Dec 2021)
Investments

mobility solutions provider

Onix Group India

• Established turnkey Electrical & Civil • ESO-10
Project Developer

Nisiki Technologies
• Grace
• Automotive parts and electrical home
• NX-120
appliance parts OEM
Challenges

Source: Company Websites, News Articles, JMK Research

16
  

Policies & Regulations

Executive Summary
For the development of e-mobility ecosystem pan-India, the FAME scheme has been the most significant
policy driver. Alongside this central scheme, there are several states and UTs that have introduced EV
policies which promote, to a great extent, the incentivization for traditional 2W consumers to shift to
electric.

Sales Trends
Central-level
In 2015, the Department of Heavy Industry (DHI) formulated the FAME scheme. The phase 1 of
this scheme was initially launched for a period of 2 years, commencing from 1st April 2015. It was
subsequently extended from time to time and was made available up to 31st March 2019, with the
total budget outlay of INR895 crore. Under FAME-1, about 2.8 lakh EVs were supported, with demand
incentives aggregating to approx. INR359 crore.

Product Launches
In March 2019, the DHI notified 2nd phase of FAME scheme starting April 2019 for a period of 3 years.
However, in June 2021, FAME 2 scheme was extended by two years till 31st March 2024. The 2nd phase of

New
FAME i.e., the current phase supports the E2W adoption by subsidising multiple E2W models in the Indian
market and targets to electrify 10 lakh E2Ws during this phase.
For an E2W model to qualify for the scheme, the two-wheeler must have a minimum range of 80 km on
a single charge and have a top speed of at least 40 kmph. In addition, the FAME 2 scheme stipulates that
the E2W should have a minimum localisation i.e., the use of locally manufactured components, of at least
50% for the OEM to avail FAME 2 subsidy.

Regulations
Apart from the recent developments in the FAME 2 scheme, over the course of last one year, there has

Policies &
been a couple of new initiatives undertaken by the government which also impact the E2W market. PLI
scheme for the automotive sector (INR25,938 crore) and the PLI ACC scheme (INR18,100 crore) are the
two major ones.
Besides this, the growing economic sense w.r.t. battery swapping solutions and the rising quality
concerns for batteries in the backdrop of recent E2W fire incidents persuaded the government to notify
new or amend existing guidelines for battery swapping and battery safety norms. Investments

i. FAME 2 Budget Allocation Status

The total financial outlay for FAME 2 scheme is INR10,000 crore. This budget is divided into
INR8,596 crore for demand incentive, INR1,000 crore for charging infrastructure and balance
for administrative infrastructure and committed expenditure in FAME phase 1. Effective from
11th June 2021, FAME 2 subsidy for E2W models is INR15,000/kWh (revised from the earlier
INR10,000/kWh) with a cap of 40% of the cost of the vehicle.
Of the total FAME 2 outlay, the government has cumulatively allocated INR4,526.64 crore (45%)
Challenges

so far. 8 The budget allocated for FY2023 alone is INR2,908.28 crore, which is more than 3x the
previous year’s budget (INR800 crore). As of 11th July 2022, ~4.7 lakh EVs have been sold under
FAME 2, utilizing about INR1,869 crore of the total demand incentive outlay (INR8,596 crore).

8. Economic Times, Green mobility push: Centre increases allocation for EV subsidy threefold, February 2022

17
  

Figure 10: FAME 2 Demand Incentive Budget - Allocation and Utilization

Executive Summary
Budget Allocated
53%
To-be Utilized
31%

FAME 2 Outlay Budget

For Demand Allocated

Sales Trends
Incentive =
= INR4,527
INR8,596 crore crore

Budget Utilized

Product Launches
To-be Allocated 22%
47%

New
Source: JMK Research
Note: Status as of 11th July 2022

About 90% i.e., ~4.2 lakh units, of the FAME 2-subsidized EVs sold until 11th July 2022 are E2Ws, signifying
a gap of 58% from the FAME 2 sales target (10 lakh units).9

Regulations
Policies &
Figure 11: Sales of E2Ws through FAME 2 Demand Incentive

Number of
E2W Incentivised
42% Investments

FAME 2
Two-wheeler
Electrification
Target
=
10,00,000
Number of E2W units
to-be Incentivised
58%
Challenges

Source: JMK Research

Note: Status as of 11th July 2022
9. JMK Research

18
  

So far, 144 EV models have been approved under FAME 2 for the grant of incentive or subsidy. Out of

Executive Summary
this, 85 are E2W models. However, only 44 E2W models have active FAME 2 certification. The FAME 2
certification of the remaining 41 models has either expired or been suspended by the government.

Figure 12: Status of FAME 2-linked E2W Models

Number of Models with

Active FAME Certification
44

Sales Trends
Number of
Approved E2W
Models
Number of Models with =
85
expired/suspended
FAME Certification
41

Product Launches
New
Source: FAME 2 Dashboard, JMK Research

20 OEMs/brands have E2W models with active FAME 2 certification. The L1 category includes 29
models across 12 OEMs. The range of FAME 2 incentives available across these OEMs/brands have been

Regulations
Policies &
illustrated in the figure below.

Figure 13: Current Incentive Range for FAME 2-certified L1 E2W Models

70 66
60
60
48
Investments
INR (in thousand)

50
51
40 34.5 46.5 48
30
30 36 33
30 28.5 30 28.5
20 23.3
18 19.72
10
0
AMO

Ampere

Battre

Benling

BGauss

Booma

Jitendra New
EV Tech

Kinetic Green

Lectrix

Okaya

Revolt

Two Motors
Twenty

Challenges

Min. Incentive Amount Max. Incentive Amount

Source: FAME 2 Dashboard, JMK Research

Note: L1 category represents 2Ws with top speed not exceeding 45 kmph.

19
  

The L2 category includes 15 models across 8 OEMs (as illustrated in the figure below).

Executive Summary
Figure 14: Current Incentive Range for FAME 2-certified L2 E2W Models

70
60 59.55
60 55.5

45 60
INR (in thousand)

50
51 51
40 43.5 44.7
42 43.2
30

Sales Trends
29
20
10
0
Ather

Bajaj

MotoCorp

Kabira

Maruthisan

Ola

Tork

TVS
Hero

Min. Incentive Amount Max. Incentive Amount

Product Launches
Source: FAME 2 Dashboard, JMK Research

New
Note: L2 category represents 2Ws with top speed over 45 kmph.

ii. Others

a. Production-linked Incentive (PLI) Schemes

Regulations
On 23rd September 2021, the Indian government approved the PLI scheme for

Policies &
automobile and auto component industry in India with a budgetary outlay of INR25,938
crore to enhance India’s manufacturing capabilities for Advanced Automotive
Products (AAT). The scheme has two components: Champion OEM incentive scheme
and Component Champion incentive scheme. In March 2022, the centre selected
20 companies across passenger vehicles, two-wheeler, and new non-automotive
segments for the scheme’s incentives. Some of the OEMs that were selected under the
Champion OEM incentive scheme include TVS, Hero MotoCorp, Bajaj Auto, and Hop
Investments

Electric.
Further, on 28th July 2022, three companies – Reliance New Energy Solar Limited, Ola
Electric Mobility Private Limited, and Rajesh Exports Limited – signed the programme
agreement under the PLI Scheme for ACC battery storage, 13 months after the gazette
notification. The programme aims to support manufacturing capacity of 50 gigawatt-
hour (GWh) of ACC with a budgetary outlay of INR18,100 crore.
This PLI scheme, along with the PLI Scheme for automotive sector and FAME 2 scheme,
Challenges

is expected to move India’s traditional fossil fuel-based automobile ecosystem to an

eco-friendlier E-mobility one.

20
  

b. Guidelines For Battery Safety Test

Executive Summary
In a more recent development, the MHI prescribed new battery safety tests to enhance
‘human safety’ for EVs. These tests, as listed in the MHI notice dated 2nd November
2022, will be made mandatory w.e.f. 1st April 2023 for claiming incentive pay-outs under
the FAME 2 scheme and PLI schemes for automobile and auto components and ACC.
The tests will check for quality at three levels – the battery pack, battery management
system (BMS), and the cell. The guidelines prescribe six tests at the cell level, ten tests
at the BMS level, and five tests at the battery pack level.

c. Amendment to EV Battery Testing Standards

Sales Trends
The union ministry of road transport and highway, on 2nd September 2022, issued
amendments to the Automotive Industry Standards (AIS) (including Amendment 3
to AIS-156 for 2 & 3-wheeler EVs), tightening the safety requirements vis-à-vis EVs
for battery cells, battery management system, on-board charger, design of battery
pack, thermal propagation due to internal cell short circuit leading to fire etc. The
amendments will be implemented in two phases: Phase 1 by 1st December 2022 and
Phase 2 by 31st March 2023. This was done for manufacturers to be better equipped to

Product Launches
comply with/implement the provisions prescribed under the AIS.

New
With the amendments to AIS, the cost of batteries is projected to increase by about
20% on account of requirements of new equipment and tests10. This increase in cost
is expected to be passed on from battery OEMs to E2W OEMs, however, the revised
battery norms will enhance vehicle safety.

d. Draft Battery Swapping Policy (2022)

On 21st April 2022, the NITI Aayog released the first draft of the Battery Swapping Policy

Regulations
Policies &
2022. The government think tank proposed offering incentives to EVs with swappable
batteries, subsidies to companies manufacturing swappable batteries, a new battery-
as-a-service (BAAS) business model, and standards for interoperable batteries, etc. The
policy addresses different factors such as smart BMS, IoT-based monitoring, Unique
Identification Number (UIN), vehicle type-approval with an interoperable swappable
battery.
The draft policy, if implemented, can act as a great boon for last-mile logistics
Investments

space where downtime is a critical factor. Not only will swapping facilitate negligible
downtime (~1 minute), it would also eliminate another critical factor of availability of
space for parking. However, on the downside as the draft policy promotes high degree
of battery standardization, it would impede the progress in terms of battery innovation
and differentiation. Additionally, the draft document does not provide clarity on the
interoperability and accountability issues pertaining to swappable batteries.
Challenges

8. Business Standard, Fire-safety norms for Li-ion battery could push up e-scooter prices by 10%, September 2022

21
  

State-level

Executive Summary
State-level E2W policy incentives provide an additional catalyst for the development of E2W ecosystem.
So far, 25 states or union territories (UTs) have either issued draft or implemented EV policy so far. Out of
the 25 states/UTs, only Bihar and Jharkhand have EV policies in the draft stage.

The table below lists all the states/UTs (23 in total) that have implemented EV policies along with State-
level E2W policy incentives provide an additional catalyst for the development of E2W ecosystem. So far,
25 states or union territories (UTs) have either issued draft or implemented EV policy so far. Out of the 25
states/UTs, only Bihar and Jharkhand have EV policies in the draft stage.

Sales Trends
Since July 2022, 8 states and 2 UTs (Assam, Chandigarh, Chhattisgarh, Goa, Haryana, Himachal Pradesh,
Ladakh, Odisha, Punjab and Rajasthan) have each issued their first-ever EV policies. Meanwhile, the states
of Maharashtra and Uttar Pradesh reformed their old EV policies to notify new ones.

Of the 23 states/UTs, 14 provide purchase incentives to the end-consumer. The incentive in the form of
fiscal subsidy is generally INR10,000 per kWh.

Further, 19 states provide some form of tax exemption such as reimbursement of E2W registration

Product Launches
charges and road tax on sale of E2W.

New
Only 7 states offer scrappage incentive such as INR5,000 for scrapping and de-registering old ICE 2W and
recycling incentive of offering remunerative price for batteries upon depositing the batteries post their
end-of-life at any charging/swapping station.

Table 2: Summary of State E2W Policies

Regulations
Policies &
Policy Policy Scrappage/
Purchase Tax
State Notification Validity Recycling
Incentive Exemption
Date Period Incentive
✔
Investments

Andhra Pradesh Effective from June 8, 2018 5 years X

Assam Effective from September 4, 2021 5 years ✔ ✔ ✔

Chandigarh Effective from 10 February 2022 5 years ✔ ✔ ✔
Chhattisgarh Effective from April 1, 2022 5 years ✔ ✔ ✔
Delhi Effective from August 2020 3 years ✔ ✔ ✔
Goa Effective from December 4, 2021 5 years ✔ ✔ ✔
Challenges

Gujarat Effective from July 1, 2021 4 years ✔ X X

Haryana Effective from July 10, 2022 5 years X ✔ X

22
  

Executive Summary
Policy Policy Scrappage/
Purchase Tax
State Notification Validity Recycling
Incentive Exemption
Date Period Incentive
Himachal
Pradesh
Effective from January 10, 2022 5 years X ✔ X

Karnataka Effective from September 25, 2017 5 years X ✔ X

Kerala Effective from March, 2019 X ✔ X

✔ ✔

Sales Trends
Ladakh Effective from August 17, 2022 5 years X

Madhya Pradesh Effective from November 2019 5 years X ✔ ✔

Maharashtra Effective from July 23, 2021
Valid till
FY2025
✔ ✔ ✔
Meghalaya Effective from April 2021 5 years ✔ ✔ X

Odisha Effective from August 27, 2021 5 years ✔ ✔

Product Launches
Rajasthan Effective from September 1, 2022 5 years ✔ X X

New
Tamil Nadu Effective from October 9, 2019 X X

Telangana Effective from October 2020 10 years X ✔ X

Uttar Pradesh Effective from October 13, 2022 5 years ✔ ✔ X

Uttarakhand Effective from December 2019 X ✔ X

West Bengal Effective from June 3, 2021 5 years ✔ X X

Regulations
Policies &
Source: JMK Research
Note: Green tick marks signify availability of fiscal incentives; blank cells under Scrappage/Recycling Incentive column
signify availability of non-fiscal/indirect benefits.

Investments
Challenges

23
  

Equity Investments

Executive Summary
The total volume of investments made in the Indian E2W market so far (since 2014) is ~INR13,000 Crore.
Over the past three fiscal years (FY2020-FY2022) alone, the market attracted INR 8,182 Crore worth of
investments. Of this, 80% was transacted in the E2W original equipment manufacturer (OEM) space.

Figure 15: Player-wise Distribution of Overall Investment in the Indian E2W Market

6,000

Sales Trends
5,289
5,000
E2W OEMs E2W Service
Provider
Investment Raised (INR Crore)

4,000

3,000
2,511
2,179
2,000

Product Launches
1,000 728 636

New
284 198 181 179 164
90 57 46 41 35 24 16 8 7 165 101
10 6
0
Ola Electric

Ather

Pure EV

Ampere

Hero Electric

Simple Energy

Revolt

River

Bgauss

Ultraviolette

eBikeGo

Tork Motors

Oben EV
kWh Bikes

Revamp Moto

VAAN Electric Moto

Rapido

Yulu

Bounce

Vogo

Zypp Electric

Esmito

RentOnGo

Regulations
Policies &
Source: Industry News Articles, JMK Research
Note: Deal values of investments in relation to Ultraviolette Automotive and Orxa Energies made in August 2022 have not
been publicly disclosed.

FY2022 especially was a landmark year for the E2W manufacturing market. The investment inflow in
FY2022 (INR 5,768 Crore) was ~10X to that in FY2021. In H1 FY2023 (April to September 2022), investments
to the tune of ~INR 3,480 Crore was injected into the market.
Investments
Challenges

24
  

Figure 16: Indian E2W Market – Annual Investment Trend

Executive Summary
7,000
Investment Raised (INR Crore)

5,768
6,000
5,000
4,000 3,480
3,000
1,877
2,000
931
1,000 251 537
6 97 6

Sales Trends
0
FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

FY2022

April to September 2022

Product Launches
Source: Industry News Articles, JMK Research

New
In addition to the key equity investment deals signed by Ather and Yulu, Esmito raised INR10 Crore in
seed fund to strengthen its battery swapping solutions for the Indian E2W and E3W markets.

Table 3: Major Equity Investment Deals in the Indian E2W Market (April to September 2022)

Deal value

Regulations
Month Company name Investor(s)

Policies &
(in INR Crore)
Sep-22 Yulu Magna 653

National Investment and Infrastructure Fund (NIIF),

May-22 Ather energy 990
Strategic Opportunities Fund (SOF), and Hero MotoCorp

Source: Industry News Articles, JMK Research

Investments
Challenges

25
  

Challenges

Executive Summary
E2W adoption in India has been constrained by the inadequacies and/or inefficiencies of different support
systems required in the EV ecosystem viz. retail financing, supply chain, and government subsidies.
These specific barriers have been henceforth discussed in brief.

Retail Financing

Sales Trends
The Indian EV industry is growing and advancing at an encouraging pace. However, the industry
is yet to break through the nascent stage of development. Due to EV industry’s nascency, Indian
lenders are hesitant in offering retail EV loans to consumers.
In particular, the risks pertaining to asset performance and asset resale act as fundamental barriers
for financial institutions (FI).
Paucity of reliable data on E2W performance with respect to vehicle life, range, load capacity, and
vehicle component quality has raised the perceived risk in E2W performance. In addition, since

Product Launches
E2W (having smaller customer pool) depreciates faster than the ICE-counterparts, the resale value
of the electric variant of two-wheelers is very low. Thus, the overall asset risk of E2W is significantly

New
higher than ICE-2W.
This is reflected on the interest rates for E2W loans. The interest rates for E2Ws can go as high as
20% or even more11 whereas for ICE-2W, the interest rates are typically 7-16%.12

E2W Battery Fire Incidents

Regulations
Policies &
The last one year has witnessed multiple cases of fire incidents involving E2Ws of OEMs such as
Ola Electric, Okinawa Autotech, Jitendra EV Tech, PureEV, and Boom EV. This prompted the Indian
government to constitute a panel to probe such incidents. As per the probe committee, fault in
battery cells and modules was the major cause of almost all E2W fires.
In case of Ola Electric, the government-backed investigation team found problems with battery
cells as well as the BMS. In case of Okinawa, the government’s team found an issue with the
cells and battery modules while with PureEV scooters, defective battery casing was the issue.
Investments

Furthermore, it was found that many E2W batteries lacked even the basic safety features such as
venting mechanisms to release any build-up of pressurised gas or systems to identify and isolate
failing or overheating cells.13
Now, with the government having revised AIS norms in relation to EV battery tests, E2W safety in
India is expected to be adequately enhanced in the near-term.
Challenges

Supply Chain Constraints

The key components of E2W such as the battery, motor, and power electronics, which constitute
about 60% of the cost of an E2W, are still not being manufactured in India and hence imported.
Due to this, only a handful of E2W OEMs meet the 50% localisation criteria to avail government
11. N ITI Aayog and RMI India, Mobilising Finance for EVs in India, January 2021
12. EY, Unlocking the Electric Mobility Value Pools along the eMobility Value Chain, May 2022
26
13. Chemistry World, Explainer: e-scooter battery fires, October 2022
  

Executive Summary
incentives. Most of the Indian manufacturers import completely knocked-down E2W kits from China.
These are then assembled in India to be sold in the local market. However, such assembled E2Ws are
not comprehensively tested under the actual Indian riding conditions, thereby leading to issues like fire
accidents.
It is highly critical for the E2W industry to enhance the indigenous supply chain with renewed focus on
rigorous product testing and Research and Development (R&D).

Subsidy-related Issues

Sales Trends
i. Delay/Halt of Subsidy Disbursal
Several E2W as well as E3W OEMs have stated that they have not been paid the FAME 2
subsidies, which they are entitled to receive, for the last 4-5 months. Reportedly, the subsidies,
aggregating to INR200-300 crore, have been halted thus far, forcing the start-ups to reduce or
modify their production schedules.12

Product Launches
In the midst of this subsidy-related situation, an EV Federation was founded on 15th October
2022 which has representation from more than 100 EV component manufacturers, E2W and

New
E3W OEMs, battery makers, and dealer associations. According to the EV federation, over
80% of smaller OEMs’ cash flows have been severely impacted owing to the non-payment of
subsidies.

ii. Subsidy Misutilization

In early October 2022, E2W OEMs namely, Hero Electric, Okinawa, Revolt and Ampere received
notices from the Ministry of Heavy Industries (MHI) to check if the E2W components used by

Regulations
Policies &
them have been locally sourced.

Reportedly, there are many Indian OEMs that are importing E2W components from China and
other countries and rebranding them under an Indian vendor so that they meet the criteria
for availing the FAME 2 subsidy.13 This has led to misutilization of government funds which
otherwise could have been used elsewhere for some other critical requirements.

Investments
Challenges

12. Autocar Professional, EV start-ups up in arms over FAME 2 subsidy delay, October 2022
13. CarbonCopy, Safety concerns around EV two-wheelers spell out the need for urgent fire-fighting, May 2022
27
 Executive Summary
 

e2w Cxo survey

Sales Trends
JMK Research & Analytics conducted a survey with key players active in E2W space in India. The purpose of
this survey is to highlight the key issues grappling the sector, understand the impact of government policies
and gauge future expectations of the Indian E2W industry.

The following companies participated in the CXO survery

Product Launches
Hero Electric Vehicles Pvt. Ltd. Revolt Motors
Mantra E-Bikes Ather Energy

New
Cosbike B:Live EV Store
Baravkar Auto e-Ashwa Automotive Pvt. Ltd.
Hop Electric Pvt Ltd Jindal Mobilitric Pvt. Ltd
LML Electric Pvt Ltd

Regulations
Policies &
Important buying criteria for end consumers

Cost 82%
n in g
n idy 64%
Ru t Subs
w en ess 55%
ren

Investments
a
Lo

m
n Aw tives 18%
l n
me ver

ce
Fis nta

in
Go

l
ca
Environ

Challenges
CXO Survey

Maximum number (82%) of respondents attribute ‘lower running cost’ as a significant driver for E2W adoption in India;
whereas 64% consider ‘government subsidy’ to be a significant driver for E2W adoption in India.

28
 Executive Summary
 

Should FAME 2 subsidies be extended beyond 2024?

Sales Trends
% of respondents who feel F AME subsidy will be highly
73% important for the gr owth of E2W market in India in the
next 2-3 years

Product Launches
New
% of respondents who feel F AME 2 subsidies should be
extended beyond 2024 82%

% of respondents who feel F AME 2 subsidies should be

Regulations
Policies &
55% extended for 3 or mo re years beyond 2024

State wise E2W adoption conduciveness

Investments
Delhi

Maharashtra

Rajasthan

Karnataka
Challenges

Uttar Pradesh

Telangana

Haryana

Tamil Nadu
CXO Survey

Odisha

0% 50% 100%

vote perce nt
82% of the respondents opine that Delhi has the most conducive environment for E2W adoption; 29
Maharashtra and Rajasthan are the next two states favoured by the respondents.
 Executive Summary
 

Key barriers for consumer adoption

Sales Trends
Range anxiety

Product Launches
New
Concerns with rspect to battery qualit y

Zero to less resale value

High Upfront cost of E2W

Regulations
Policies &
Lack of qualit y products

Higher downtime (High charging time)

Investments
Lack of afte r-sales service

Charging infrastructu re unavailability

High vehicle insurance pr emium

Challenges
CXO Survey

Inadequate financing options, Range anxiety and Battery quality concerns are the top 3 barriers to E2W adoption in India

30
 Executive Summary
 

Key Challenges faced by OEMs

Sales Trends
Supply chain constraints (High reliance on imports)

Huge R&D cost

Product Launches
Battery quality issues

New
Talent crunch

Charging infrastructure growth

Regulations
Policies &
Lack of funding options (especially for start-ups )

Supply chain constraints (high reliance on imports) and Huge R&D cost are the two most critical OEM-side issues; Fur-
thermore, the ongoing inverted duty structure (wherein GST rate on input materials is higher than GST rate on output
products) which is leading to substantial blockage of working capital has also been highlighted as another key OEM-side
challenge

Investments
Business growth expected of survey respondents in FY2023
55%

27%

18%
Challenges

82% of r espondents pr edict mo re than 100%

of year-on-year gr owth of their business in
FY2023; whe reas 55% of respondents expect
more than 200% of year-on-year growth of
their business in FY202 3
CXO Survey

50-100% 100-200% >200%

Growth Growth Growth

31
 Executive Summary
 

Expected share of E2W in total two-wheeler sales in India in

Sales Trends
the next 5 years

%
18

Product Launches
10-15%
55 Maximum number (55 %) of the r espondents feel
% that the sha re of E2 W in t otal two-wheeler sales

New
in India in the ne xt 5 y ears, i. e., by FY202 7, would
>25% be mor e than 25%;
Share
15-25%
27%

Regulations
Policies &
Expected share of high-speed E2W in

Investments
total (high-speed+low-speed) E2W annual sales by FY2027

9%
1 9%

50-60%
Challenges
%
36

>80%
Growth
55% of respondents expect greater than
70% share of high-speed E2W in total (high-
60-70% speed+low-speed) E2W annual sales by
70-80% FY2027
36%

CXO Survey

32
  

EV ONLINE
DASHBOARD
Investments &
JVs/Partnerships Tenders
Related information captured ~50 tenders with status
basis vehicle type, deal type, of all announced (2019
and company type onwards) and awarded
E2W Player Profiles tenders and Expression Policies
of Interest All State-announced/notified/drafted EV policies
Company description, month-wise
registrations, models, dealership in consolidated form as well as for different
network, investments/JVs/part- vehicle segments, charging infrastructure, and
nerships manufacturing. This includes targets to be
achieved and incentives offered as part of state
policies and FAME-I, FAME-II

Models
Existing and recently introduced Value-chain
models of all vehicle types with Batteries’ and charging
information on range, charging infrastructure-related
time, ex-showroom prices, top all relevant information
speed, battery type etc. captured here

Market Share/
Registrations Projections
Market share data available for
Overall EV count registered
Segments/OEMs/Li-Ion Batteries
and bifurcation as well as
(LIB)/Charge Point Operators
further analysis of different
(CPOs). Likewise, projections
types of EVs – E2W, E3W,
available and continuously
E-Car, E-Buses. Yearly as
updated for segment-wise
well as monthly capture
market shares and LIB/LIB
available
end-use shares.

INCLUSIONS CONTACT US
• Online access for 12 months For online demo of the dashboard
please contact us at:
• Weekly EV Newsletter (48 in a year)
M: +91-7428306655
• Monthly EV Summary (12 in a year)
E: contact@jmkresearch.com
33
• Access to research support team W: www.jmkresearch.com
 

Copyright (c) JMK Research & Analytics 2022

JMK Research & Analytics

JMK Research & Analytics
E: contact@jmkresearch.com
M: +91-7428306655
A: Plot No.23, Sector 18,
Udyog Vihar, Gurugram,
Haryana- 122015

w w w . j m k r e s e a r c h . c o m 35