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Wednesday, June 19, 2024

Electric Bike Market in India: Facing Hurdles but Not Losing the Race

With rising knowledge about the environmental advantages and rising gas prices, India’s electric bike business has grown significantly in recent years. According to a Motor Intelligence market study report, the E-Bike industry in India is expected to grow at a CAGR of 9.94%.

The electric two-wheeler sector has ambitious ambitions to raise its manufacturing capacity to more than 30 million units per year by 2026, representing a 50% increase over the largest annual sales of two-wheelers in India to date. Despite the government’s drive to promote electric vehicles, the sector is facing severe obstacles, with sales of electric bikes trailing significantly behind their fossil fuel equivalents. This essay will address the issues that the Indian electric bike sector is facing and the path forward.

Inadequate Charging Infrastructure

The absence of charging infrastructure in India is posing a hurdle to the electric bike sector. According to the IVCA-EY-Indu legislation study, India has a total of 1742 charging stations. To solve this issue, the Indian government developed the FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) initiative, which offers financial incentives to both people and organisations for purchasing electric vehicles and installing charging stations. This programme offers financial incentives to both people and businesses for purchasing electric vehicles and installing charging stations.

Electric bikes are expensive

The high cost of electric motorcycles in comparison to petrol bikes is posing a challenge to the Indian electric bike sector. To solve this issue, the Indian government has announced many efforts, including the FAME plan and a decrease in GST (Goods and Services Tax) on electric vehicles. In the 2023 budget announcements, Finance Minister Nirmala Sitharaman also made numerous major announcements for India’s automotive and expanding electric transportation sectors.

These measures include the exemption of capital goods and machinery essential for the manufacture of lithium-ion cells used in electric vehicle (EV) batteries, as well as a reduction in the customs tariff on lithium-ion batteries from 21% to 13%. These initiatives are likely to hasten the expansion of India’s EV industry and aid the country’s transition to a low-carbon economy. Furthermore, numerous electric bike manufacturers have begun to provide financing alternatives in order to make their goods more accessible to buyers.

Electric Bikes Have a Limited Range

The restricted choice of electric motorcycles in India is posing a challenge to the electric bike business. Most electric bikes have some about a range of 60 km – 70 km on a single charge, which may put off potential purchasers. Initiatives like as creating battery technology, fast-charging infrastructure, and reformative braking technologies are ongoing to solve this issue. Furthermore, the Indian government might give incentives for research and development in this field to stimulate innovation.

Consumers’ Lack of Awareness

The electric bike industry in India is being challenged by a lack of customer understanding about the benefits of E-bikes. According to a YouGov poll, just 31 percent of Indians are aware of electric bikes. To remedy this issue, the Indian government should undertake awareness programmes to educate people about the advantages of electric bikes, and electric bike producers can provide additional information in relation to their products and the advantages they bring.

Conclusion

The electric bike sector in India has tremendous difficulties, yet there is enormous development potential. To overcome these difficulties, the government has committed Rs 19,700 crores to the National Green Hydrogen Mission and Rs 10,000 crores to the Gobardhan initiative to stimulate the growth of biogas. These policies are intended to hasten the adoption of greener transportation solutions and aid India’s growth in the EV industry. Tax breaks on EV battery capital goods, the National Green Hydrogen Mission, and the Gobardhan programme all contribute to the government’s commitment to encouraging green mobility and sustainable energy solutions.

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