The demand for E Scooter is continuously increasing in the entire country.
The trend of electric scooters in India is now moving beyond big cities. In the markets where earlier electric two-wheelers were sold the most, their share is now decreasing. The reason for this is that now people are increasingly adopting them even in small towns and rural India. This shows that electric mobility is now making its place in the mass-market. This change is not only changing the markets where e-scooters are sold, but is also indicating which company will be ahead in the market. During the initial growth of the sector, technology, innovation and differentiated products led to the emergence of new companies in the electric vehicle (EV) space, which dominated the markets in big cities. But as e-scooters are making inroads in urban and rural India, things like distribution network, service infrastructure, financing facilities and brand trust are becoming important. These are qualities that have traditionally favored India’s established two-wheeler manufacturers.
Inquiry is increasing from small towns
Industry officials say demand has increased in recent months, especially in smaller cities and towns. The reasons for this are – rising fuel prices, increasing customer confidence and more people adopting EV as a practical option. Ravneet S., Chief Business Officer, Ather Energy. Phokela said in the ET report that inquiries have been increasing continuously for the last two-three quarters, but in recent months it has increased, especially from Tier-2, Tier-3 and Tier-4 cities. He said that this change shows a big change in the behavior of customers. E-scooters are no longer considered just for those who are the first to adopt new things. Common buyers are also now seeing them as a good alternative to conventional vehicles, because they are economical to buy and run and trust in technology is also increasing.
Sales are increasing
The recent increase in petrol prices has further strengthened this point. This trend is visible across the country, but the fastest growing EV markets are emerging from areas that have always been strongholds for traditional scooters. Bajaj Auto Executive Director Rakesh Sharma said that in areas where ICE (Internal Combustion Engine) scooters are prevalent, the sales of e-scooters are generally increasing rapidly. This shows that electric mobility is now being adopted by the same common customers who had driven India’s scooter market for decades. Instead of electric scooters developing as a niche or limited category product, they are now becoming a part of the larger scooter market.
New sub-segments of EV
As this change is happening, the preferences of customers of both types of scooters are also becoming similar. According to Sharma, ultimately, customers choose keeping in mind certain features which are common in both ICE and EV segments. He said that even though new sub-segments of EVs are emerging, the things that customers value remain very similar. Dealers in Pune, Vadodara, Surat, Visakhapatnam and other urban markets are talking about increasing demand. This shows that people are adopting them even outside the big urban centers of India.
The dominance of big and old companies increased
Changing market conditions are already changing the leadership position in the industry. The dominance of some companies that were early adopters of EV has diminished, while established companies like TVS Motor, Bajaj Auto and Hero MotoCorp have strengthened their position. Ravi Bhatia, President of automotive consultancy firm Jato Dynamics, said in an ET report that now not only technology enthusiasts but also common customers are rapidly shaping the market. The demand for family centric products is also increasing, which shows the increasing circle of customers.
The race will be won on the basis of reach
This has great significance for the industry. As electric scooters move out of big cities and reach the mass market, the capabilities of the country’s biggest two-wheeler companies may be as important as the technology that powers their vehicles. The first phase of India’s electric scooter story was won on the basis of technology. Experts say that the next round will probably be won on the basis of reach.
