Legacy brands gain ground in India’s electric two-wheeler market

The electric two-wheeler market in India is seeing a shift as legacy manufacturers like Bajaj Auto, Hero MotoCorp, and TVS Motor gain ground. In the first quarter, their collective market share rose to around 30%, up from 25.5% a year earlier. This comes at the expense of leading startups such as Ola Electric, Ather Energy, and Greaves Electric, whose combined share dropped to 48.8%, down from 59% the previous year.

Despite a slight overall increase in electric two-wheeler sales by 1.4% to 221,548 units, the dynamics within the market are changing. Traditional manufacturers, who once lagged, now account for one in every three units sold. Ola Electric remains the market leader, with a 57% increase in sales to 107,911 units last quarter. However, Bajaj Auto and Hero MotoCorp are catching up, recording significant sales growth of 50% and 376%, respectively.

Hero MotoCorp’s electric scooter, Vida V1, saw a 186% rise in dispatches to 10,000 units in the June quarter, with the company’s market share reaching 5%. Meanwhile, TVS Motor, Ather, and Greaves experienced sales declines during the same period.

Hero MotoCorp and Bajaj Auto are focused on expanding their electric vehicle presence. Hero is rolling out its Vida brand across 200 cities and 300 touchpoints while setting up over 2,500 charging stations in partnership with Ather Energy. Bajaj Auto plans to ramp up production of its Chetak electric scooters, targeting 15,000 units per month initially and 20,000 units later. Both companies emphasize growth over short-term profitability, indicating a long-term commitment to the electric vehicle segment. TVS also aims to capitalize on the electric vehicle opportunity with new product launches across various price points.