Electric Two-Wheeler Market Size

The market size of electric two-wheelers is expanding rapidly as governments and consumers shift towards cleaner transportation. Increasing production capacity, affordability, and rising awareness of environmental benefits are contributing to significant market growth.

The electric two-wheeler market in India is not just a success story; it's an economic phenomenon. The Electric Two-Wheeler Market Size, representing the total annual revenue from the sale of these vehicles, has surged into a multi-billion-dollar industry, valued at many thousands of crores of rupees. As of 2025, its valuation continues to grow at a breathtaking pace, making it the single most significant driver of the entire Indian EV ecosystem. This impressive market size is a direct reflection of mass adoption, driven by the sheer volume of vehicles being sold every month across the nation.

Calculating the Market's Value

The market size is a powerful figure derived from a simple but massive equation: Market Size = (Total Number of Electric Two-Wheelers Sold) x (Average Selling Price)

Both parts of this equation are driving the valuation upwards:

  • Massive Volume: India is the largest two-wheeler market in the world. As the electric segment's share of this market grows from single digits to over 20-25%, the sheer number of units sold runs into the millions annually.

  • Increasing Average Selling Price (ASP): The first wave of EVs were low-speed, basic models. The current market is dominated by high-speed, feature-rich scooters and emerging performance motorcycles with larger batteries and more technology. This has significantly increased the ASP, meaning the market's revenue is growing even faster than its unit sales.

Market Size by Segments To get a clearer picture, the market valuation can be broken down:

  • By Vehicle Speed:

    • High-Speed (Top speed > 25 km/h): This is, by a massive margin, the largest segment of the market in terms of both value and volume. These are the vehicles eligible for FAME II subsidies and represent the mainstream commuter market.

    • Low-Speed (Top speed <= 25 km/h): This is a smaller, more price-sensitive segment that caters to short-distance, utility applications and does not require a license or registration.

  • By Vehicle Type: The electric scooter segment accounts for the overwhelming majority (over 95%) of the market's unit volume and revenue. The electric motorcycle segment, while growing much faster, is still a small but high-value portion of the total market size.

  • By User: The B2C (Business-to-Consumer) segment, comprising individual buyers, is the largest. However, the B2B (Business-to-Business) segment, including sales to delivery fleets and rental companies, is a major and rapidly growing contributor.

 

Frequently Asked Questions (FAQ)

 

Q1: How big is the electric two-wheeler market in India in terms of value? A1: As of 2025, the market is a significant multi-billion-dollar industry. Its annual revenue is measured in the tens of thousands of crores of rupees, and it continues to be one of the fastest-growing automotive segments in the country.

Q2: Which is a bigger market: high-speed or low-speed electric scooters? A2: The high-speed electric scooter market is vastly bigger. It represents the mainstream segment that has captured the imagination of the Indian commuter and is where the major players like Ola, TVS, and Ather compete.

Q3: Do sales to delivery companies contribute to the market size? A3: Yes, absolutely. The B2B segment, which includes bulk purchases by e-commerce and food delivery companies, is a huge and important contributor to the overall market size and volume.