Emerging trends and burgeoning sales figures are sure-fire indicators of the booming two-wheeler industry in India.
Here are some facts and influences of upcoming scooters in India:
- Valued at USD 5 billion in 2020, the Indian Electric Vehicle Market is expected to record USD 47 billion in 2026. The market analysis has predicted a compound annual growth rate of above 44% in 2021-2026.
- Kerala state intends to have one million EV units plying the road by 2022. By 2025, another 6,000 e-buses will run in public transport.
- Similarly, the state of Telangana proposes to chase EV sales targets for 2025. The plan is to reach 15% electrification of all vehicles. The categories include 80% of two and three-wheelers, 70% of commercial cars such as cabs, 40% of buses, and 30% of private cars.
- The Fame II scheme launched by the Government has helped companies gain momentum of e-vehicle sales.
- During the first quarter of 2021, the premier intelligence EV company, Ather Energy, relocated its USD 86.5 million plant. The facility moved from Bengaluru to Hosur to expand the two-wheeler production volume.
- Ola launched its Ola S1 and S1 Pro electric scooters in August 2021. It has received a massive demand selling over Rs 1,100 crore worth of electric scooters in its limited-time purchase window. Ola Electric’s Co-founder Bhavish Aggarwal called the sale an unusual development for the auto industry. He said, “In total over two days, we have done over Rs 1,100 crores in sales. This is unprecedented not just in the automotive industry, but it is one of the highest sales in a day (by value) for a single product in Indian e-commerce history!”
- Within a quarter, Bajaj Chetak sold 1,723 units.
- Likewise, Okinawa AutoTech Pvt Ltd invested USD 28.4 million, approximately INR 200. The investment funded a second manufacturing plant in 2019. The production plant has an annual manufacturing target of 10 lakh units.
The country now has home-grown products that offer value for the buck and boast remarkable sales numbers.
Let’s look at the much anticipate newbies on the block.
Yamaha E 01
Earlier this year, Japanese automaker Yamaha launched two-hybrid scooter models, Ray ZR 125 Fi Hybrid and Street Rally 125 Fi Hybrid. The prices start at INR 76,830. So, now for some total recall. Back in 2019, during the Tokyo Motor Show, the company unveiled Yamaha E01, e scooter. As this news breaks, we learned the Yamaha E01 is about to go into production for a grand launch in 2022. It has been revealed that Yamaha is preparing to introduce a production model of the new electric scooter. The company has also filed patents for the Yamaha E01 at the beginning of this year. Yamaha is expected to launch 12 bikes in the year 2021-2022.
Ultraviolette F77
Ultraviolette F77 has plans to debut in Indian markets by March 2022. Ultraviolette Automotive is a Bengaluru-based EV start-up founded by Narayan Subramaniam and Niraj Rajmohan. The two innovators have been childhood buddies with a friendship lasting over 20 years. They competed during their academic years and eventually joined hands as a team to penetrate the mobility markets.
They have huge plans to reach the global high-profile electric motorcycle market. The aim is to pitch against International brands like the US-based Harley-Davidson and Zero Motorcycles. Also, they intend to challenge petrol motorcycles with engine sizes of 300-500cc in India and internationally.
Ultraviolette Automotive’s first electric premium motorcycle, the F77, will be launched in India in early 2022. Moreover, they will take on global markets by 2024.
The Founder, Narayan Subramaniam commented, “provided the ongoing chip shortage and the possible Covid-19 third wave in India don’t disrupt our plans”. The F77 has a minimum riding range of 150 km. However, it will have alternatives with a higher range too. The price will range from Rs 3 lakh onwards.
The second Founder Niraj Rajmohan says, “In India, it will compete against motorcycles such as the Apache, and some models by Bajaj and KTM. The F77 is a proper performance bike.”
Mainly the company wishes to compete with petrol motorcycles on price point. Ultraviolette Automotive’s plans for global expansion in 2024 are pretty ambitious. This makes it the first business of a high-technology product exported from India.
TVS is a major investor in Ultraviolette Automotive. For now, they will not be entering the electric scooter segment. But eventually, they may consider alternate ventures. Ultraviolette F77’s motor details haven’t been completely revealed. Still, the automaker maintains that the electric bike can go from 0 to 60 kmph in just 2.9 seconds.
It is establishing its first manufacturing unit near Electronic City in Bangalore. Manufacturing of the F77 is expected to begin soon. The first batch of motorcycles is scheduled to enter the market in 2022. The new plant has an annual capacity range to manufacture 120,000 vehicles.
Revolt RV1
In April this year, Rattan India Enterprises revealed it will invest ₹150 crores in electric motorcycle maker Revolt Intellicorp with a 43% stake. As Revolt Motors gets all set to introduce an entry-level electric motorcycle, the Revolt RV1 in 2022. The Revolt brand was founded by the co-founder of Micromax Rahul Sharma.
The announced EV model will be much more budget-friendly than the RV300 and is meant to replace it. The RV1 is supposed to proceed into production in early 2022. The company currently has two EV models in the line, the RV400 and the RV300. Previously known as RattanIndia Infra, RattanIndia recently announced its departure from infra business to concentrate on new growth businesses. Later, it also announced obtaining a 43% stake in Revolt Motor for Rs 150 crore. This brand new upcoming model is anticipated to be priced much less in the Rs 75,000 to Rs 80,000 price bracket. The official India launch of the same shall take place sometime in January 2022.
As for the upcoming electric bike, the Revolt RV1 is going to be a 100% Made in India product. Later, the group also stated that Domino’s Pizza will obtain its complete inventory of Revolt RV300 electric bikes for its delivery fleet and aim to create an all-EV fleet.
Anjali Rattan, promoter of Rattan India Enterprises Ltd (REL) stated, “By December this year, our product will become completely made-in-India. We have been importing parts from China, but we are now focusing on every single supply from India. The manufacturing of the new bike will start in January 2022.”
Rattan further declared that Revolt Motors is observing a mounting demand for its electric bikes and so the brand had to pause the bookings many times this year.
Hero MotoCorp
Another superstar of the Indian two-wheeler industry, Hero MotoCorp, is planning to launch an electric model in 2022. It intends to launch its electric vehicles globally in 20 international markets. The mobility titan expects 15 percent of cumulative volume to grow from global sales by 2025. Furthermore, they expect 30% sales from digital channels until 2030.
The company has also affiliated with Gogoro Inc (Taiwan) to deliver a battery swapping platform to India.
Hero MotoCorp CFO Niranjan Gupta said, “We are trying to launch one of the EV products in the fiscal year 2022, and you will see multiple actions, whether it is our own product or a swap product or with Gogoro. All of those actions you will see in the next calendar year”
During 2020- 2021 fiscal, Hero MotoCorp marketed 58 lakh units of motorcycles and scooters.
Jawa Electric
The latest entrant to the electric vehicles in the two-wheeler segment is the motorcycle brand Jawa. The classic brand is soon likely to launch an all-electric bike. The motorcycle brand is now working on a new electric motorcycle. Jawa’s CEO, Ashish Singh Joshi announced that the company has a new research center in Coventry, UK. With a team of 12-15 employees working for BSA, the electric technology for the new EV motorcycle is being developed at this R&D center. It was rendered that Jawa’s first electric motorcycle may hit the market in mid-2022. Meanwhile, the EV may share commonalities with existing petrol Java bikes available in the market, including design and features. The overall design and structure could remain identical to the Jawa 42.
LML
Recently, LML, the yesteryear company, also revealed its revival plan in the Indian market. It is ready to enter the electric two-wheeler industry.
Looking at the challenges
Battery manufacturing
In the past, Lithium-ion batteries were mostly developed in China. Nevertheless, various business entities are now producing them regionally. To eliminate this Chinese monopoly, India’s first EV battery plant is planning to open in Karnataka. Thanks to Vikram Handa, the son-in-law of India’s largest steel magnate, Sajjan Jindal. In the meantime, the cost of lithium-ion batteries has dropped distinctly to 82% within 2012 to 2020. The drop has been predicted to continue.
Better charging infrastructure
As of March 2021, India has only 1800 charging stations. Although, large business groups such as Tata Power and Magenta are increasing the network. Ola intends to use 100,000 of its hyper-chargers, charging a battery up to 50% within 18 minutes.
In Conclusion
There is an encouraging rise in the quantity and quality of E mobility businesses. When Ather launched its first electric scooter a few years ago, it set a benchmark for the competition. Global giants like Honda, Yamaha, and Suzuki Bergman are also ready to launch their debut in the electric vehicles segment. With such major players, the consumers have a win-win in both products and prices, quality and quantity. Experts believe the commercial two-wheelers segment will develop faster as opposed to the personal market. E-commerce titans Amazon and Flipkart promise to go 100% electric in their logistics fleet by 2030. Still, only time will tell. The sales figures, however, have been more than promising.