Indian Electric Scooter and Motorcycles Market keeps momentum in 2025. The segment grew up 4.4%, at a new volume record of 1.28 million, although OEMs have lost most of government incentives. TVS is market leader, while Ola is collapsing.
Indian Electric 2-Wheeler 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
Following the impressive growth of the electric segment, pushed up by the new energy strategy supported by the government, which boosted the growth of over hundred ev startups but even involved the big ICE players which started investing into the sector, in 2025 the segment marginally increased, suffering for the natural process of consolidation, with several early starters ending their adventure and with new players starting on a more solid technological base.
While the total Indian 2-wheeler domestic market was able again to beat all time records, the 2-wheeler electric segment grew up 4.4%, at a new volume record of 1.28 million, although OEMs have lost most of government incentives.
Looking ahead, our forecasts for the next decade are, of course positive. However, we see the segment at 6 million in 2035 with an outstanding growth from current level, while well below the numbers spread in the web by market researches sellers.
Market Leaders and Performance
The performance has been highly different among manufacturers and it is not a surprise that the most innovative big indian company, TVS Motor, is on top of the ranking with over 300K sales and a solid +30.5% increase.
In second place a surprising Bajaj Auto (+21.2%), a remarkable performance for a company looking not innovative, but rapid on launching EVs models.
In third place the first pure electric company, Ather with a solid +72.8% sales and still 40% of capacity not utilized.
In fourth place Ola Electric is collapsing, a year after the quotation and sales plummet 48.7%.
In fifth place Hero is rapidly recovering after a slower start in the segment with sales up 154.4%.
These 5 manufacturers control over 90% of industry sales.
