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The figure of startups in India ’s galvanic two - wheeler market has surge to over 150 from 54 in 2021 , take by government incentives to further clean vehicles and turn off oil significance , grant to a new analysis .
The influx hasintensified competitionin a segment expected to grow 15 - 20 prison term to one-year sales of 15 - 20 million units over the next decade , Bernstein read in a report late Tuesday .
“ Most are vie in the mainstream , and 85 % of the 65 models launched last year were such product : high - speed as against speed and range - constrain products , which used to be a feature article of the inauguration , ” Bernstein analyst indite . “ The median stamp battery capacity for new launches increase from 2.3kWhr in 2022 to 3kWhr . ”
India point to reach 30 % electric vehicle penetration by 2030 and net zero carbon paper emissions by 2070 . The authorities has offer incentives under its FAME II scheme , which provides subsidies to purchaser and was late carry to 2024 .
Despitea reduction in FAME II subsidy in mid-2023 , the numeral of electric two - wheeler companies uprise from 124 in June 2023 to 152 by January 2024 , with much of the addition arrive from “ importers ” sourcing components or intact vehicle from overseas , Bernstein observe .
“ Most of these are just tack kit from China , ” said Kunal Khattar , founder of mobility - focalize speculation firm AdvantEdge . “ Getting an EV product out the door is not expensive . It ’s the brand construction and dispersion that folk underrate . ”
startup currently hold seven of the top 10 spots , including the market leader ( Ola Electric , which is alsoplanning to go public soon ) with a 39 % share as of January 2024 . Some 85 % of sales bulk are centralize among the top five players , however .
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Bernstein ’s analytic thinking found low barrier to entry , with electric two - wheelers construct using outsource models and readily useable ingredient . Only about half of the 35 founders they break down had engineering science background .
The government is now shifting toward yield - linked incentives ( PLI)favoring domestic manufacturing . Most set up automotive companies have been granted PLI while only a few inauguration qualified , potentially providing a cost advantage for major incumbents , Bernstein said .
The composition sees way for at least five startups to emerge as relevant player alongside ground company , but monish that vivid contender could keep industriousness profit margins and return subdued in the medium term .
