India’s electric two-wheeler market is undergoing a structural shift, with established automobile manufacturers strengthening their position as several startups lose momentum after an early lead. According to a recent report by Antique Stock Broking, the sector has entered a new phase after rapid experimentation and aggressive expansion between 2021 and 2025, with sustainable business models, reliable products and robust service networks emerging as the key differentiators.
The initial enthusiasm around electric scooters and motorcycles is gradually giving way to market maturity. Consumers are no longer focused solely on new features or attractive pricing, placing increasing importance on product quality, safety standards and after-sales service.
The report identifies three distinct phases in the evolution of India’s electric two-wheeler market. The first phase, spanning 2021–22, was characterised by experimentation, with multiple startups launching new models, introducing new technologies and competing for consumer attention.
The second phase, during 2023–24, marked a period of rapid growth. Government support through the FAME-II subsidy, declining vehicle prices and rising fuel costs increased the attractiveness of electric vehicles, leading to a sharp rise in electric scooter sales.
The third and current phase, in 2025, reflects a clear shift in market dynamics. The focus has moved from rapid volume expansion to sustainable business operations and profitability, contributing to a gradual transfer of market leadership towards established and trusted manufacturers.
Data from the government’s Vahan portal shows that approximately 1.2 to 1.3 million electric two-wheelers were sold in India between 2021 and 2025. While the market gained significant momentum from 2024, several startup manufacturers experienced a slowdown in sales in 2025.
In contrast, established players such as TVS, Bajaj and Hero recorded a sharp increase in sales, supported by extensive dealer networks, established brand credibility and ber service capabilities.
Electric two-wheelers are no longer limited to large urban centres. Once positioned as a premium or niche technology, electric scooters are increasingly being adopted for daily commuting needs, including office travel, shopping and short-distance mobility.
Lower running costs, government incentives and improvements in battery technology have improved practicality. However, during 2024–25, technical issues and service-related complaints associated with certain models affected consumer confidence, prompting some buyers to switch brands.
Startups initially gained traction through aggressive launch strategies, rapid expansion, competitive pricing and ambitious commitments. As the market scaled up, challenges related to capital constraints, limited service networks and product quality became more pronounced.
Established manufacturers benefited from existing infrastructure, supply chains and customer trust, enabling them to outperform newer entrants as competitive pressures increased.
According to the report, Ola Electric, which led the market in 2024, slipped to fourth place in 2025. TVS Motor emerged as the market leader in 2025, recording sales of around 300,000 units, supported by consistent and stable execution.
Bajaj Auto secured second place following a renewed focus on the electric segment, emphasising product reliability and service coverage. Ather Energy maintained its position in the premium segment and ranked third in 2025. Hero MotoCorp entered the electric segment later but expanded sales rapidly after 2024 through a measured and structured approach.
The sector is gradually moving away from reliance on subsidies. While government incentives played a significant role in the initial expansion, consumers have become more discerning. The report notes that future market sustainability will depend on b balance sheets, dependable service networks and wide distribution systems, rather than pricing advantages driven solely by subsidies.
