India’s electric two-wheeler startups surge to over 150 players as government revs up EV push

The number of startups in India’s electric two-wheeler market has surged to over 150 from 54 in 2021, driven by government incentives to promote clean vehicles and cut oil imports, according to a new analysis.

The influx has intensified competition in a segment expected to grow 15-20 times to annual sales of 15-20 million units over the next decade, Bernstein said in a report late Tuesday.

“Most are competing in the mainstream, and 85% of the 65 models launched last year were such products: high-speed as against speed and range-constrained products, which used to be a feature of the startups,” Bernstein analysts wrote. “The average battery capacity for new launches increased from 2.3kWhr in 2022 to 3kWhr.”

India aims to achieve 30% electric vehicle penetration by 2030 and net zero carbon emissions by 2070. The government has offered incentives under its FAME II scheme, which provides subsidies to buyers and was recently extended to 2024.

Despite a reduction in FAME II subsidies in mid-2023, the number of electric two-wheeler companies rose from 124 in June 2023 to 152 by January 2024, with much of the increase coming from “importers” sourcing components or entire vehicles from abroad, Bernstein noted.

“Most of these are just assembled kits from China,” said Kunal Khattar, founder of mobility-focused venture firm AdvantEdge. “Getting an EV product out the door is not expensive. It’s the brand building and distribution that folks underestimate.”

Image credits: Bernstein

Startups currently hold seven of the top 10 spots, including the market leader (Ola Electric; which is also planning to go public soon) with a 39% share as of January 2024. Some 85% of sales volumes are concentrated among the top five players, however.

Bernstein’s analysis found low barriers to entry, with electric two-wheelers built using outsourced models and readily available components. Only about half of the 35 founders they analyzed had engineering backgrounds.

Image credits: Bernstein

The government is now shifting towards production-linked incentives (PLI) favoring domestic manufacturing. Most established automotive companies have been granted PLI while only a few startups qualified, potentially providing a cost advantage for major incumbents, Bernstein said.

The report sees room for at least five startups to emerge as relevant players alongside established companies, but cautions that intense competition could keep industry profit margins and returns subdued in the medium term.

Image credits: Bernstein

Source link

By asm3a

How To Get Free Match Masters F How To Get Unli Xbox Gift Card Royal Match Che Iphone Giveaway How To Get Bado Free Episode Ch Episode Choose All Brawl Stars Playgd Mobile F Telecharger Gbw Free Razer Gold Who App Free Co 11 Ways To Get (New-Updated) M How To Increase Pk Xd Generator Dream League So 10 Ways To Earn Onlyfans Accoun Ar Robots Gold Royal Match Fre Episode Choose Match Masters F How Can I Get A 12 Legit Ways T How To Get Free [Official] Best Playstation Off New.Updated She All Free Genshi Apex Legends Is ▶️ How To Get P How To Get Free Jackpot Mania C Imvu Credits Wo Level Up Your G Playgd Mobi Gol House Of Fun Sl Match Master Fr Madden Nfl Mobi Walking War Rob How Can I Get F Cash Frenzy Slo New Survivor.Io Claim Free Leag Simcity 3000 Un Collect Helldiv Webtoon Insane Bingo Blitz Fre How To Get Free Coin Master Spi Ar Robots Gold How To Get Free New.Updated She How To Get Free Walmart Rewards Free Eshop Code Pokemon Go Play 8 Ball Pool Rew How To Get Jack How To Get Free Garena Free Fir Get Free Coins Télécharger Wha Bingo Blitz Fre Simcity Buildit Today'S Coin Ma How To Get Free House Of Fun Fr Play Gd Mobile Bigo-Live-Free- My Singing Mons Fire Kirin Free How To Get Unli Best Buy Free C Instagram 10K F Free Instagram Match Masters F Spotify Premium Free Apple $10 Free Amazon Gif How To Get 1000 How To Get 3 Fr Free Credits Fo Discover The Se Free Followers Helldivers 2 Fr New Updates) 2 Hey Avakins. Do Dice Dreams Fre Free Amazon Gif Reading At Good Webtoon Free Co Tumile Hack/Mod Tumile Hack/Mod Call Of Duty Mo 5 Secret Surviv Get Free Candy All Valorant Co 12 Easy Ways To Get Free Cp In Monopoly Go Fre Free™ Bigo Live How To Get Free How To View Onl Survivor Io Cod Helldivers 2 Fr Free Tiktok Lik 6 Best Free Pay Vct 2024 Differ Spotify Mod Apk Livu Free Coins Get A Free $25 Free Tiktok Coi New* Get Free I Free Mine Coins Helldivers 2 Fr Free Unused Nin Easiest Free Vc (Legit) Imvu Fr Cod Points Save Play War Robots Download Gta 5 Apex Legends 5T No Waiting Free (Newest)!! 2 Wa Cash Frenzy Slo Candy Crush Fre Apex Girls All Onlyfans Free S Easy Ways To Ge Créez Une Appli Bingo Blitz Fre How To Get The Boost Your Team (Free) Unlimite Pokemon Go Free Increase Your S Monopoly Go Hac Best Free Onlin Free Primogems! Genshin Impact Madden Nfl 24 M Spotify Premium Free Best Buy G Fre Gems Pred F Free Boxes Work How To Get More How To Get Free How To Get Cred How I Get My Xb Garena Free Fir How To Increase Free Cod Points Coin Master Fre How To Get Free Free Mine Coins Play Gd - Play Get 100 Free In Walmart Rewards Jackpot Party C Genshin Impact Earn Free Pubg Fire Kirin Free How To Get Free Here'S All The 15 Easy Ways To Free Nintendo E Madden Nfl 24 M Free Nintendo E Free Monopoly G Reading At Good Free Itunes Gif 8 Ball Pool Gen Surprise Reward Garena Free Fir Discover The Se All Free Brawl 8 Ball Pool Fre How To Earn Fre 2 Best Stories Free Tiktok Fol Here Are All Th Download Millio Livu App Unlimi How To Get A Sp Coin Master Fre Nba 2K24 Locker Shein Gift Card Free Paypal Mon Coin Master Fre How I Got 40K C How To Get Free Gamehunters Clu Genshin Impact Avakin Life Hac Minecraft Free