By contrast, only three out of the eight electric two-wheeler models launched in 2018-19 were manufactured by startups.
Globally, the EV revolution was brought about by disruptors that became the torchbearers of the shift to greener vehicles. In India, the EV transition started with two-wheelers and three-wheelers, the largest components of the transportation sector, in the largest two-wheeler market in the world in terms of both sales and production.
“The EV penetration was facilitated by lower regulation and access to imported parts, but now it has gained momentum with many innovative products and technologies being brought by EV companies,” said Sulajja Firodia Motwani, CEO, Kinetic Green Energy.
Change usually is driven by newcomers and challengers, said Ravneet S Phokela, CEO of Ather Energy, the second-largest two-wheeler maker in the country. “Startups are leading the way at this stage of the category development. EV startups don’t have a safety net or Plan B in ICE (internal combustion engines). Therefore, they are deeply vested in electrification and don’t have either the cultural baggage or financial considerations that stops them from going all-out,” he said.
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ICE Players Now Catching Up
Electric two-wheelers are easier to manufacture than electric cars due to their simpler design, supply chain and manufacturing processes. They have fewer parts and components, and they use electric motors instead of complex powertrains, requiring less space and resources for manufacturing.“Overall, the design, supply chain and manufacturing processes for electric two-wheelers are simpler than for electric cars. This makes it easier to produce them on a large scale, attracting startups and manufacturing companies,” said Ravi Bhatia, president, Jato Dynamics.
Electric two-wheelers have lower battery requirements than electric cars and their reliance on public charging infrastructure is much lower as well. Especially in India, the electric two-wheeler market has immense potential, according to experts. In May, electric two-wheeler sales in the country crossed the 100,000 mark for the first time.
“The traditional ICE players are now catching up, by investing and introducing electric products,” said Motwani, whose company recently launched several high-speed two-wheelers and announced plans to introduce the Kinetic e-Luna.
Established automakers are now seeking to emulate startups and evolving their business models by leveraging their strengths such as access to capital, strong brands and manufacturing capabilities, said Bhatia.
Meanwhile, in the electric passenger vehicle segment, traditional players such as Tata Motors, Mahindra, Hyundai, Kia, MG Motor and Citroen continue to dominate. Chinese startup BYD retails two models, the E6 and Atto3, while other global players in the four-wheeler segment such as Tesla and Rivian are yet to enter the country.
Among Indian firms, Tata Motors is betting big on the electric vehicle business, having launched several models and maintained its lead in the country’s electric passenger vehicle segment. In its annual report for 2022-2023, the company highlighted its plan to more than double the contribution of electric vehicles to its portfolio to 25% in the next five years, from 12% at present, and reach 50% by 2030.