India’s electric two-wheeler market is undergoing a remarkable transformation, with sales projected to grow from 504.5K units in 2023 to 4042.2k units by 2029, reflecting an astonishing CAGR of 48.9%. This shift is being fuelled by rising fuel prices, government incentives, and advancements in battery technology, making e-bikes an affordable, sustainable, and efficient choice for millions of daily commuters.   

The surge in demand is evident, with companies like Ola Electric and Hero Electric witnessing record-breaking sales, while new players such as Ather Energy continue to push innovation in the market. As government policies strengthen the sector and infrastructure expands, electric two-wheelers are set to dominate India’s urban mobility landscape.   

 Government Push and Cost Benefits Driving Adoption   

• The Indian government has implemented various initiatives to accelerate electric mobility, including subsidies, policy mandates, and infrastructure development. The FAME-II scheme provides ₹15,000 kWh in subsidies, making electric two-wheelers more affordable. Additionally, the directive to transition all sub-150cc two-wheelers to electric by the end of 2025 encourages manufacturers to enhance production capabilities. 
• These policies are projected to yield significant economic benefits, with an estimated reduction of ₹1,200 billion in oil imports over the next five to seven years. This shift is prompting established manufacturers like Hero Electric and TVS Motors to expand their production capacities, while new entrants like Ola Electric are investing in large-scale EV factories to meet rising demand. 
• The cost efficiency of electric two-wheelers compared to petrol models is a key factor driving adoption. Operating an electric bike costs approximately ₹10 for 70 km, whereas a petrol bike costs ₹102.2 for the same distance, resulting in nearly 90% savings on fuel. Furthermore, lower maintenance costs due to fewer mechanical components make electric two-wheelers attractive for daily commuters and gig workers. 

Innovations in Battery Technology and Expanding Market Reach   

• Technological advancements in battery efficiency and charging solutions are driving the mass adoption of electric two-wheelers. While lithium-ion batteries remain dominant, companies are investing in solid-state and sodium-ion batteries to enhance performance and reduce costs. Fast-charging technology is now reducing charge times from 5-6 hours to under 2 hours, making electric mobility more convenient. 
• Battery-swapping technology is a significant innovation, allowing users to replace depleted batteries in minutes. SUN Mobility, a startup based in Bengaluru, has developed a swappable battery and has a network of 50 battery-swapping stations across 14 cities in India 
• Overall, India has nearly 2,500 battery-swapping stations in 2023. In comparison, there are over 25,000 public EV charging stations. Further, Hero Electric has partnered with BOLT to set up 50,000 charging stations by the end of 2025. Also, fleet operators and ride-sharing services, including Zomato and Swiggy, are adopting these technologies to enhance efficiency. 

• Charging infrastructure is also expanding rapidly, with states like Maharashtra, Tamil Nadu, and Gujarat leading in EV station deployment. Subscription models and battery leasing services are further increasing accessibility, making electric two-wheelers essential for urban mobility across the country. 

What is the Future of Electrification? 

With India’s electric two-wheeler market expected to reach 4042.2k units by 2029, the country is on the verge of an e-mobility revolution. Government policies, lower ownership costs, and continuous innovations in battery technology are making electric two-wheelers the preferred mode of transport for millions of Indians.   

As infrastructure strengthens and financing options expand, affordable e-bikes will dominate urban mobility. Companies that invest in innovation, build robust distribution networks, and collaborate with emerging tech partners will lead the next phase of India’s electric mobility growth. The question is no longer if electric two-wheelers will replace petrol models—but how fast this transformation will happen.