Indian Electric Scooter and Motorcycles Market keeps momentum in 2025. In the first ten months of the year, EVs sales have been over 1.1 million up 8.0% although incentives have been reduced. TVS is market leader, while Ola is collapsing.
Market Overview
Following the introduction of strong incentives to the electric vehicles manufacturers, the Indian electric 2W market accelerated and in the last two years grew up from 176.996 (2021) to a record of 1.2 million (2024), with the introduction of new models from the Top players, TVS Motor as first.
Sales are sustained by strong government incentives for vehicles locally produced and utilizing components made in India. The level of incentives is changing time over time and a new scheme has just be introduced for current fiscal year.
Under the new EMPS 2024 plan, the government has set aside Rs 500 crore for electric two-wheelers and three-wheelers. Out of which, approx Rs 333.39 crore will be available to support up to 333,387 vehicle sales over four months. The subsidy for electric two-wheelers will be Rs 5,000 per kWh of battery capacity, capped at 15 percent of the vehicle’s factory price.
The maximum cap remains the same as compared to the FAME 2 scheme, but the subsidy per kWh is now half; as FAME 2 offered Rs 10,000 per kWh. Moreover, there’s an extra cap of Rs 10,000 per electric vehicle under EMPS.
Industry Trend and Perspectives
Although reduced incentives, in 2025 the sector keeps growing and gaining share inside the total Indian 2-wheeler domestic market .
In the first ten months of the year, EVs sales have been over 1.1 million up 8.0%.
Looking at the competitive arena, the market leader still is TVS Motor which have boosted sales by 28.9%.
In second place there is Bajaj Auto (+18.5%) thanks to the best selling EV model in the market, the iQube.
In third place Ather keeps growing (+68.7%) while in 4th, Ola Electric is collapsing, a year after the quotation and sales plummet 49.7%.
Behind, but with a wide gap, there is the fast growing Hero (+123.4%).
The top 4 brands hold over 80% of the EV market.
