What is the future of electric scooters in India?

India is the largest producer and manufacturer of two-wheelers in the world. And in 2016 India emerged as the biggest two-wheeler market in the world. The narrow streets, jam-packed roads, rising population, affordable prices, and ease of commuting in two-wheelers have made it people’s choice. But the surging price of fuel and global emission by these two-wheelers has led to the innovation of e-scooters.
These scooters are powered by an electric motor that draws current from a DC battery. The riding range of entry-level electric scooters is 50-60 km per charge. However, many electric two-wheelers have a superb driving range of over 150 km with only 6-8 hours of charging. However, amid the e-scooter craze, the question is whether these vehicles have a sustainable future. Let's find out.
 

Future of Electric Scooters in India

The road to a sustainable future for e-scooters is not without obstacles. But first, let us look at what is driving the e-scooter market.
  1. Government Support

    The growing concerns about climate change and rising pollution have shifted the government's focus to electric vehicles. As part of "Make in India," the government has announced a major investment to boost electric vehicle production. Not just the government, but many private companies have also stepped forward with financial support for the two-wheeler industry.
     
    Another factor pointing to the bright future of e-scooters is the government's goal of achieving 80% electric two-wheeler mobility by 2030.
     
  2. Subsidies and Incentives

    In an effort to boost e-scooter sales, the central government announced a vehicle cost subsidy under the revised Faster Adoption and Manufacturing of Hybrid and Electric Vehicles-II (FAME-II) scheme. The GST on e-scooters has also been reduced to make these vehicles more affordable. In addition to the central government, various state governments have stepped forward and announced incentives, which are detailed below.
StateRoad Tax DiscountSubsidy (Per kWh)Maximum Subsidy
Uttar Pradesh100%NilNil
Maharashtra 100%Rs 5,000Rs 25,000
Assam100%Rs 10,000Rs 20,000
Gujarat50%Rs 10,000Rs 20,000
Meghalaya100%Rs 10,000Rs 20,000
West Bengal 100%Rs 10,000Rs 20,000
Bihar100%Rs 10,000Rs 20,000
RajasthanNARs 2,500Rs 10,000
Odisha100%NARs 5,000
Kerala50%NANA
Tamil Nadu100%NilNil
Karnataka 100%NilNil
Telangana100%NilNil
Punjab100%NilNil
Madhya Pradesh99%NilNil
Andhra Pradesh100%NilNil
Delhi100%Rs 5,000Rs 30,000
 
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  1. Running Costs

    When it comes to operating costs, e-scooters are significantly less expensive. You might be surprised to learn that a single kilometre on an electric bike cost only Rs 0.35. On the other hand, petrol-powered bikes will cost you around Rs 2.20 to travel one kilometre. That is, if you commute 50 kilometres per day, e-scooters can help you save Rs 100 per day and Rs 36,500 per year. One of the many factors that can contribute to EVs' sustainable future is their lower running costs.
     
  2. Various Options

    When EVs were first introduced, years ago, they were criticised for their slow speed, poor performance, and unreliable battery and body. However, as technology has advanced, things have changed dramatically. 
     
    Many renowned two-wheeler manufacturers have entered the market in the last few years. The electric vehicle segment now includes a diverse range of two-wheelers. You will find many options on the market, whether you want to buy an entry-level bike with a low driving range or one that can help you with long road trips at a decent speed.
     
  3. Increase in R>Increase in R&D Investmentamp;D Investment

    Many large two-wheeler manufacturers are spending millions of dollars on research and development to improve the technologies used in e-scooters. As a consumer, you can expect to see more improved vehicles with stronger batteries and better motors in the coming years. Researchers are also working on impressive features like a display screen for viewing google maps,
     
  4. Easy Financing

    Financing an e-scooter is simple, thanks to easy access to two-wheeler loans. It is another factor driving the growth of electric vehicles. In order to get instant approval, go over the two-wheeler loan eligibility criteria and ensure you have all the necessary documents.
     

What are the obstacles to the success of e-scooters?


Many factors are impeding the growth of electric vehicles in India, some of which are as follows:
 
  1. High Manufacturing Costs

    The cost of manufacturing electric scooters is significantly higher than that of ICE vehicles. These vehicles' lithium-ion batteries are quite expensive. Furthermore, India is dependent on imports for various spare parts used in these vehicles. As a result, until India can manufacture everything in-house, the success of electric vehicles remains uncertain.
     
  2. Lack of Charging Facilities

    You will find only a few charging stations for e-scooters in India. When you get to the small towns, things get much worse. If the government does not accelerate its efforts to improve charging infrastructure, the current demand for EVs, which is due to the low operating costs, will fade away in the coming years.
     
  3. Poor Battery Life

    You may have heard of several recent cases in which the battery installed within the e-scooter failed to withstand high temperatures and caught fire when exposed directly to the sun. Furthermore, after a few years of ownership, the battery drains quickly after only covering 15-20 kilometres, necessitating a quick recharge. If these issues are not addressed immediately, India will not be able to realise its goal of electric mobility by 2030.
     
  4. Lack of Adequate Service Centres

    E-scooters are a relatively new concept in our country. If your electric vehicle is damaged and you have it towed to a local mechanic for repairs and maintenance, there is a very slim chance that they will assist you. In such a case, your options are to send your bike to a different city where the service centre is located or to request a skilled mechanic from the company. However, you will have to spend a significant amount of money in both cases.
     
Also Read: Top 10 Hero bikes to buy in India

To Conclude

In India, the future of electric scooters appears to be bright. And various factors such as government assistance, incentives and subsidies, lower operating costs, and simple financing options are driving its growth. However, to make e-scooters sustainable, it is necessary to address issues such as high manufacturing costs, a lack of charging infrastructure, and a scarcity of service centres.

 

Frequently Asked Questions

How does battery technology affect the future of electric scooters?

Advances in battery technology will lead to longer ranges, shorter charging times, and more affordable electric scooters, making them more practical and attractive to consumers.

Are there any innovations expected in electric scooter design?

Innovations in design may include lighter materials, foldable models for easy storage, enhanced safety features, and customizable options for users.

Are electric scooters environmentally friendly?

Yes, electric scooters are environmentally friendly as they produce zero emissions, helping to reduce air pollution and reliance on fossil fuels.

Which is Better: Electric Scooter Vs Petrol Scooter?

Electric scooters are better for lower running costs and eco-friendliness, while petrol scooters offer longer range and quicker refueling. Choosing between electric or petrol scooter depends on your usage needs and environmental considerations.


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Written by  Katyaini Kotiyal

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Katyaini is a finance expert with a focus on the non-banking financial sector, bringing over 8 years of experience in NBFC. She specializes in simplifying complex financial concepts for readers, helping them navigate the NBFC landscape. Outside of work, she is passionate about travelling.

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