Legacy automakers gain ground as electric two-wheeler market enters new phase of competition

April 2025 sees TVS Motor overtake Ola Electric, while Bajaj Auto surges—signalling a shift towards a more competitive, brand-driven EV landscape.

Legacy two-wheeler manufacturers such as TVS Motor Company and Bajaj Auto are rapidly catching up with early EV disruptors, in a sign of shifting dynamics in India’s electric two-wheeler market.

April 2025 saw TVS emerge as the top selling brand for the first time, narrowly edging past long-time market leader Ola Electric, while Bajaj Auto surged to third position with triple-digit growth.

TVS Motor sold 19,736 units of its iQube electric scooter in April, capturing a 22% market share and overtaking Ola Electric’s 19,709 units. Bajaj Auto was close behind with 19,001 units, clocking an impressive 151% year-on-year growth, and pushing its Chetak brand deeper into the mainstream.

These milestones were backed by record-breaking sales across the segment. Retail data from the government’s Vahan portal shows that 91,791 electric two-wheelers were sold in April, up 40% year-on-year, compared to 65,555 units in April 2024. This has been the strongest April performance on record for e2Ws, beating the previous high of 2023 and 2024, and possibly setting up for a competitive 2025.

Legacy Players Intensify Competition 

TVS Motor’s rise is underpinned by a steady expansion of its iQube lineup, which now caters to a range of urban commuters.

“The company’s wide dealership network, consistent product quality, and reliable after-sales support have proven instrumental in gaining customer trust—especially in Tier 2 and Tier 3 cities where EV adoption is accelerating,” said one industry executive requesting anonymity.

Bajaj Auto’s comeback highlights the strength of its strategy revolving around a strong brand like Chetak.

While Ola Electric remains a dominant force, its once-wide lead is narrowing. The company’s direct-to-consumer approach and early-mover advantage helped it scale rapidly, but the infrastructure of traditional automakers is starting to make an impact in the EV space.

“The evolving consumer mindset is at the heart of this market shift. Buyers are no longer swayed by flashy marketing or just price points—they increasingly seek reliability, service access, and trust in the brand. Legacy players, with decades of experience and well-oiled distribution networks, are meeting these expectations more effectively,” another industry expert said on the condition of anonymity.

At the same time, policy support continues to play a role. The rollout of EMPS scheme subsidies and state-level incentives are fuelling demand across segments.

Subsidies for green energy-powered vehicles will continue through the government's Electric Mobility Promotion Scheme (EMPS), which is said to be extended by another two months.

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The maturing market is also being shaped by external pressures like rising fuel costs. This has brought new types of buyers into the fold, from students and gig workers to families and small businesses, all of whom value after-sales support and ease of ownership.

Growth in Tier II and Tier III markets

“Ola’s initial success was driven by tech-savvy early adopters, attracted by features, range, and digital experience,” the person quoted above said.

Changing Gears

As the electric two-wheeler market expands beyond metros into Tier 2 and 3 cities, and as more value-conscious buyers explore options, the need for reliable servicing, spare part availability, and brand assurance is on the rise.

Experts say another aspect of the electric two-wheeler market is that it is no longer purely about first-time buyers, but customers are now upgrading or changing existing EVs, thus intensifying competition.

Ather Energy, the most recent EV startup to go public in India, recorded sales of 13,167 units in April 2025, marking a 31% year-on-year growth from 10,049 units in April 2024. This has helped Ather capture a 14% market share in the electric two-wheeler market, more than doubling from 6% share a year ago.

Also Read: From buzzing IPOs to fight for leadership: Key trends that shaped India’s EV 2W market in 2024 and what lies ahead

The key driver behind this surge is the Rizta, Ather’s family-focused electric scooter launched last year. In fact, during a media briefing on April 26, Ather’s leadership said the success of the Rizta gave the company the confidence to go public.

With 1.14 million electric two-wheelers sold in FY25, marking a 21% year-on-year growth, and April 2025 starting with record numbers, competition in the sector seems to be hotting up.