Multiple e-motorcycles to zip on Indian roads

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At least 10 battery-powered motorcycles ranging in price from Rs 85,000 to Rs 6 lakh (see table below) are expected to hit the Indian roads in the next 18 months.

This is in addition to 20-25 medium and high-speed electric scooter and three e-motorbike models that are already plying on the roads.

The majority of the launches are lined up by home-grown startups such as Revolt Motors (now owned by RattanIndia), Ultraviolette Automotive, Orxa Energies, Ather Energy, Okinawa Autotech and Tork Motors as well as by established entities like Hero Electric.

While electric two-wheelers currently account for only about 4 percent of two-wheelers sold in India, experts reckon that increasing fuel prices and government subsidies are making people shift from Internal Combustion Engine (ICE) vehicles to EVs. According to a report by Blume Ventures, electric two-wheeler (E2W) sales are projected to rise 24 times to reach 18 million units by 2030.  As per Vahan dashboard, 231,000 e-two wheelers were sold last financial year, which was six times more than a corresponding period a year ago.

“Since there aren't many electric motorcycle models available, many companies are aiming to gain a significant market share by introducing high battery capacity and high range of bikes,” said Karan Chechi, Research Director with TechSci Research, management consulting firm.

Viable and economical

TechSci Research expects around 20 electric motorcycles to get launched in the next two to three years including models from big companies like Harley Davidson Inc., TVS Motor Company and Royal Enfield.  Currently, the top 3 selling E2W brands are Ola with a markershare of 17.92 percent, Ampere at 14.26 percent, and Okinawa at 13.49 percent.

“Our product is targeted towards consumers who are looking for a viable and economical vehicle for their daily commute, “stated Kapil Shelke, Founder and CEO, of Bharat Forge-backed Tork Motors, which had launched an e-motorbike called Kratos in January this year. In his view, while all OEMs (original equipment manufacturers) are focusing on e-scooters nobody is exploring e-motorcycles. “With our product introduction, we are sure others will take a cue from us and start building battery-run bikes,” added Shelke.

The central government’s FAME  (Faster Adoption and Manufacturing of Electric Vehicles in India) - II scheme was rolled out at supporting all segments of electric vehicles, and that includes 1 million electric 2-wheelers.

Further, the incentives/ subsidies for e-2W have been increased to Rs 15,000/KWh from Rs 10,000/KWh with an increase in cap from 20 percent to 40 percent of the cost of vehicle with effect from June 11, 2021.

Among the upcoming launches, Ultraviolette Automotive Pvt Ltd, which is backed by TVS Motor Company, is expected to be the first off the block with the launch of its F77 hyperbike, scheduled for November 24, 2022. The high-performance bike is expected to be priced in the range of Rs 3.5 lakh to Rs 4.2 lakh.

Orxa Energies, a Bengaluru-based performance electric vehicle and energy systems start-up is gearing up to launch its Mantis electric motorcycle by March 2023. Two-wheeler brand LML will be launching Moonshot e-hyperbike in the second half of 2023, revealed Dr. Yogesh Bhatia, MD, LML Electric.

Hero Electric, which has been the pioneer in the electric two-wheeler industry in India, is also exploring the feasibility of AE-47, the concept version of which was showcased at the 2020 Auto Expo. The company, however, didn't officially confirm the development.

Ola Electric’s Bhavish Aggarwal, while launching an ultra-affordable e-scooter, revealed that it will make its entry into e-motorcycles segment by the end of 2023.

Age factor

“In the Indian market, 65 percent to 70 percent roads are more suitable for bikes that have big tyres and as per our research the demand for motorcycles is higher when compared to scooters. If we talk of rural areas and (of states like) UP, Bihar and Hyderabad, Jharkhand, demand is skewed in favour of bikes than scooters. Even in case of ICEVs, 75 percent of the penetration is of bikes....and this will the case for electric two-wheelers too. Even the age factor does play a part - younger generation has a bias towards bikes, which also reflects in the demand for e-bikes is fast picking up," said Rajneesh Singh - Chief Marketing Officer - HOP Electric.

However, the road ahead will be a difficult one for companies selling electric motorbikes. As per Indian Venture and Alternate Capital Association (IVCA) — an organization working on promoting capital ecosystem, the government’s target of achieving 80 percent penetration of EVs in two-wheeler industry is a bit ‘aggressive’ because of charging infrastructure, high cost of batteries and low expenditure on research and development.

Infra problems

India has around 2,000 public EV charging stations, which industry players reckon is inadequate to support EV growth. Furthermore, multiple fire incidents had also impacted sales of electric two-wheelers during June.

Also, none of the industry stakeholders is confident that E2Ws will be able to achieve parity in the Total Cost of Ownership (TCO) with ICE vehicles.

“At this point of time, we are unsure if most of the electric motorcycle models will be able to get to TCO in next 3-4 years for personal use applications. This is because motorbikes need to be run on high –powered batteries based on advanced motors. That further leads to a hike in prices of the product. As a result, consumers find it unreasonably priced,"  said Arpit Agrawal, author of the Blume Ventures report.