Last year, cryptocurrency was not the only hot topic in India. Electric automobiles were one of the most trending topics too. Likewise, India also grew into being the second-largest two-wheeler market in the world after China. Right now, the automobile market in India is ripe for disruption. And the key player here is the e-bicycle market. Currently, it is very limited but the growth potential is sky-high.
Due to the ease of driving through the crowded roads and economic viability, e-bicycles are gaining demand by a large margin.
Factors Affecting Demand for E-Bicycles
Leisure and fitness are the most prominent elements contributing to the demand for electric cycles. Apart from them, a significant lot have adopted them as an alternate mode of transport for short distances as well.
Lowering disposable incomes with the onset of the pandemic and the need for social distance, electric cycles made an ideal fit. There are various other reasons like rising fuel prices which make it even more feasible in the long run.
Studies have predicted that the EV two-wheeler industry can surpass the half-million units mark by the year 2030 in the Indian subcontinent.
Let us delve into this electric-cycle market more and understand the important factors.
Cost
E-bicycles are on the premium end in the cycles segment of two-wheeler vehicles. They are available anywhere between 20,000 to 80,000. But they are much more affordable than other two-wheelers or four-wheelers options. And the health benefits they pose far outweigh the costs incurred in return.
Government Initiatives
The Indian government’s brain trust Niti Aayog has directed funds towards electric two-wheelers. They have introduced schemes of FAME and FAME II where they allocated a substantial percentage of the budget towards the same.
As per World Economic Forum, the last-mile- delivery concept can rise by approximately 75% by 2030 across the world.
Hence, looking at the environmental benefits and low costs, the government has taken a strong lead to make it a success. They have pledged to introduce it in the “Last Mile Segment” for cargos and e-commerce goods deliveries. Although at a nascent stage right now, it is gradually picking up pace.
Major Players
There are various manufacturers and start-ups involved in the supply of e-bicycles. Many leading manufacturers like Hero Cycles have ventured into the market already.
Others like Avon and Yamaha are offering a collection of speed and comfort-focused e-bicycles. With the competition growing, the market is bound to reach newer heights. This means more options for the consumers that directly increase the adoption of e-bicycles in India.
Indian Laws – Electric Vehicles
As per Indian law, electric vehicles need the Automotive Research Association of India (ARAI) approval. But, riders don’t require a license, insurance, or helmet as per the Regional Transport Offices in cases they have ARAI approval.
The ease of riding e-bicycles is an added advantage for this industry’s growth. Experts also expect more laws to be introduced that might incentivize the purchase of e-bicycles. Also, subsidies are touted to be introduced to further appeal to the masses to adopt e-bicycles.
All these measures are surely going to skyrocket their demand.
Conclusion –
Along with tackling congestion issues in the cities, e-bicycles have a range of benefits recognized both by the government and people. Although it is more of a luxury right now, it will hold its place soon in the market. With regular innovation and a customer-centric approach, this industry is in for a boom in the years to come.
Spoke Herd truly believes in the e-bicycle segment to be the future of cycling. And we also highly recommend investing in one to reap the benefits over several years.
