CATALYSING THE MARKET TRANSFORMATION OF ELECTRIC 2-WHEELER INSIGHTS FROM CONSUMERS AND STAKEHOLDERS
Authors: Nimesh Vikas , Natarjan Bhaskar , Hussain Saddam , Kumar K.N. Hemanth 
Published: March 2024

Electric two-wheelers (E2Ws) are becoming increasingly popular as an eco-friendly mode of transport. They provide a convenient and efficient option for short-distance travel, particularly in urban areas. However, the widespread adoption of E2Ws in India still faces several challenges. In order to address these issues, the Alliance for an Energy Efficient Economy (AEEE) and International Copper Association India (ICA India) have teamed up to identify the key barriers hindering the adoption of electric two-wheelers in the market. The joint research project aims to identify effective pathways for a market transformation for E2Ws in India and promote the widespread adoption of E2Ws as a sustainable and efficient mode of transport. The goal of the study is to facilitate the increased adoption of E2Ws in India by examining the perspectives of various stakeholders, including consumers, fleet operators, financial institutions, dealerships, and service centers. The study was conducted in three zones - North Zone (Delhi, Lucknow), West Zone (Mumbai, Jaipur, Ahmedabad, Rajkot), and South Zone (Bangalore, Coimbatore, Hyderabad, Chennai). The study collected 1159 responses from both E2W users and internal combustion engine (ICE) users across India, as well as E2W dealers, in order to gain a more comprehensive understanding of the E2W market across the country. The survey results revealed key insights about the prevalence of E2W users, their awareness of ICE options, and their willingness to adopt more eco-friendly modes of transport. The report covers key aspects of E2Ws, including purchase, charging, performance, aftersales, safety, retrofitting, etc. Chapter 1 introduces the E2W ecosystem and sets the background and need for the study. Chapter 2 details the scope and methodology adopted for the research. Various barriers and motivating factors and their role in attracting or deterring consumers from or towards EV adoption, like charging practices, usage behaviour, ownership cost, purchase experience, etc., were delved into. The chapter also details the respondents’ profiles and the surveying techniques incorporated for the study, i.e., face-toface interviews with E2W users and In-person qualitative discussions with the E2W dealers. It was found that the younger generations had an equal propensity towards both ICE and E2Ws. Also, the average income of EV owners was found to be higher than the average income of ICE two-wheelers. Chapter 3 discusses the findings and key insights from the consumer survey. It examines the key perceptions of customers regarding E2W and ICE vehicles and their purchase and usage practices. The chapter discusses important current and future triggers and barriers to EV adoption. Access to charging stations, Safety concerns, high upfront costs, long charging times, etc., were found to be the major deterrents towards EV adoption. Chapter 4 presents the key insights from the dealer consultation and discusses the various obstacles, including warranty and battery replacement costs, low margins, the lack of supplier credit facilities, battery backup, the high price of E2Ws, and low speed. These obstacles impede their ability to sell electric vehicles and compete with other types of vehicle dealers. Nonetheless, as the EV market grows and develops, manufacturers and dealers will be able to overcome these obstacles and establish a more sustainable and competitive EV industry. Chapter 4 presents the key insights from the dealer consultation and discusses the various obstacles dealers face, including warranty and battery replacement costs, low margins, the lack of supplier credit facilities, battery backup, the high price of E2Ws, and low speed. These obstacles impede their ability to sell electric vehicles and compete with other types of vehicle dealers. Nonetheless, as the EV market grows and develops, manufacturers and dealers will be able to overcome these obstacles and establish a more sustainable and competitive EV industry. Chapter 5 provides recommendations to address the different barriers to E2W adoption in India, like high upfront costs of E2W, charging stations, safety issues, battery issues, etc. The whitepaper provides recommendations to address the challenges and barriers hindering the adoption of E2Ws in India. These recommendations cover various topics such as consumer perceptions, demand incentives, and product-related issues like servicing, safety, and performance. To encourage ix the wider adoption of E2Ws, the whitepaper proposes several measures, including improving the availability of charging infrastructure, regular maintenance of charging points, and investment support to charging and swapping players. Additionally, partnering with financial institutions to offer affordable loans is recommended to make E2Ws more accessible to consumers. These measures are critical to overcoming the challenges faced by E2W users and promoting the adoption of ecofriendly transport options in India. To achieve the target of increasing energy efficiency and reducing carbon emissions by 33-35% by 2030, as set by the Indian government, it is crucial for the various stakeholders in the electric vehicle ecosystem to implement the strategies outlined in the whitepaper. The aim is to accelerate the adoption of E2Ws and support the government in achieving its goals.