Traditional automakers moving quick and fast in electric two-wheeler market

Traditional automakers are gaining ground in e2W market

Traditional automakers are wresting ground from new-age players in the electric two-wheeler market and entry of vehicle giant Honda is a case in point. On November 27, Honda announced its entry in the electric two-wheeler (e2W) segment with the launch of Activa-e and QC1 scooters.

The launch puts Honda in direct competition with Bajaj, TVS and Hero Motocorp, which entered the market earlier and are giving stiff competition to pureplay EV manufacturers such as Ather Energy and Ola Electric.

This year, Bajaj overtook Ather to emerge as the third largest e2W seller, according to registration data released by the government portal Vahan.

In 2023, TVS Motor Company, another legacy player, become the second largest EV seller, overtaking Ather. Ola Electric remains the biggest electric two-wheeler company in the country, so far

Growing market, big gains

Although two-wheeler sales have been muted compared to the previous year — till November 27, 16.9 million scooters and motorcycles were sold against 16.5 million in 2023 — e2W sales have been robust.

The EV industry now accounts for 6 percent of the total 2W market, compared with 5 percent in 2023 and 1 percent in 2021.

Electric two-wheeler sales are up 23.8 percent in 2024 from the previous year.

Traditional companies, which dominate the internal combustion engine (ICE) two-wheeler market, such as Bajaj, TVS and Hero Motocorp have gained more than others. The three manufacturers' share in e2W registration jumped from 6.8 percent in 2021 to 39.2 percent in 2024.

November marks a change

November sales have only strengthened the positions of the three legacy players in the nascent EV market.

Bajaj Auto, TVS and Hero Motocorp accounted for over half of all e2W sales during the month. At 51 percent of the total e2W registrations, the three together crossed the 50 percent mark for the first time, Vahan data shows. In October and September, their share was 47 percent.

While traditional players had just a 31 percent share of e2W registrations in the first half of 2024, their share galloped to 46 percent in the second half, till November.