This is how e2W makers working on prices to increase adoption. Check details

Ola Electric's recent decision to slash the price of its S1X+ electric scooter by ₹25,000, bringing it in line with the cost of Honda's Activa petrol scooter, marks a significant development in India's electric two-wheeler (e2W) market. This move reflects a broader trend in the industry, with companies like Ather Energy and Bajaj Auto's Chetak Technology also introducing more affordable models and implementing substantial price reductions.

Ola Electric's S1X+ now retails at ₹85,000, directly competing with the Honda Activa priced between ₹76,000 and ₹90,000. This aggressive pricing strategy, coupled with a diverse range of models catering to various needs, is expected to sway customers towards choosing electric scooters over traditional petrol-powered ones. Other major industry players like Ather Energy and Bajaj Auto are following suit, recognising the shift in consumer preferences towards more sustainable transportation options.

The goal of these initiatives is clear: to narrow the price gap between electric and petrol scooters, ultimately aiming to accelerate the adoption of electric two-wheelers across India. Despite electric two-wheeler sales projected to reach around 8,50,000 units in fiscal 2024, they currently constitute only 4.5 per cent of the market. The main challenge hindering the widespread adoption is lack of infrastructure. However, the availability of cheaper batteries has also played a crucial role in recent price reductions, as demonstrated by Tata Motors cutting prices for its electric vehicles.

Bajaj Auto's electric vehicle division recently introduced an updated version of its Chetak scooter, available in two variants priced at ₹1.15 lakh and ₹1.35 lakh, respectively. These moves indicate a strong commitment from established players to capture a larger share of the burgeoning electric two-wheeler market.

According to data from the government's Vahan portal, electric two-wheeler manufacturers recorded sales of 81,608 units in January 2024, marking a 26 per cent increase compared to the same period the previous year, and an 8 per cent rise from the preceding month. This uptick in sales underscores the growing acceptance and demand for electric two-wheelers in India.

Moreover, established players like TVS Motor and Bajaj Auto are expanding their market presence in the electric scooter segment, leveraging their extensive distribution networks. This trend is occurring as the market share of companies exclusively producing electric two-wheelers is diminishing in this rapidly growing market.

Looking ahead, the anticipated launch of electric two-wheelers like the Honda Activa Electric and the Gogoro 2 series is expected to further fuel the demand for electric two-wheelers in India. These developments are seen as a pathway to make customers shift towards electric mobility in the country, driven by both market forces and government initiatives aimed at reducing carbon emissions and promoting sustainable transportation solutions.