Market Trends of Electric Scooter and Motorcycle Industry
This section covers the major market trends shaping the Electric Scooter & Motorcycle Market according to our research experts:
E-scooter Segment Expected to Occupy Major Market Share
E-scooters witness higher sales than e-motorcycles due to lower upfront costs and the availability of more models in the market, which provide ample options for buyers. The allure of the e-scooter, both as a toy and as a potential vehicle for commuting, is driving its adoption. Thus, several startups are beginning to flood major metropolitan areas with hundreds of 'rent by minute' scooters.
Several pilot programs have been initiated to introduce e-scooters in a phased manner to reduce vehicle emissions in cities. The popularity of e-scooters is also encouraging conventional two-wheeler manufacturers to enter the market. India is emerging as a lucrative market for e-scooters. Hence, several Indian two-wheeler manufacturers are gearing up to launch their models in the segment. For instance,
- November 2022: Vegh Automobiles launched VEGH S60, their first high-speed electric scooter in India. The scooter will have a battery of 3 kW on a 60V platform designed to meet AIS 56 amendments issued by the Government of India. The scooter will take between 3 to 4 hours to charge fully and reach top speeds between 60 to 70 km/hr.
- November 2022: Ola Electric launched their cheapest electric scooter Ola S1 Air for INR 79999 (~ USD 1000) in India. The scooter features a different wheel design, a single-piece pillion grabrail, and a black finish to the lower part of the rear panel. The scooter is available for retail in five colors: Black, Coral Glam, Liquid Silver, Porcelain White, and Neo Mint.
The market for electric scooters is also being driven by the investments announced by many micromobility companies and E-commerce giants who prefer electric vehicles for their last-mile deliveries to reduce their carbon footprint. For instance
- November 2022: Amazon India signed a Memorandum of Understanding (MoU) with TVS Motor Co. to induct 1000 electric two and three-wheelers by 2025 for last-mile delivery operations in India.
- April 2022: Estonian micro-mobility services, ride-hailing, and food delivery services company Bolt announced investing more than EUR 150 million (USD 151.5 million) for the expansion of its e-bikes and electric scooter fleet and to enhance the overall customer experience. This investment will see Bolt's fleet expand to 230000 e-bikes and scooters across more than 250 cities in Europe.
- January 2022: London-based electric scooter-sharing company Dott raised USD 70 million, which it will invest in the fleet expansion of electric scooters, expanding its network to new cities, and start offering new services.
The announcements by the governments of EU member states, India, and China to ban the sales of IC engine two-wheelers by 2035 and 2040, respectively, contribute to the growing sales of electric scooters in these geographies.
Thus the confluence of the above-mentioned factors is projected to ensure the dominance of electric scooters in the electric scooter and motorcycle market over the next five years.
Asia-Pacific Region Expected to Lead the Market During the Forecast Period
Asia-Pacific is anticipated to lead the market over the forecast period. China, India, South Korea, and Japan are the major economies in the regional market, which are expected to influence the overall market. These countries are witnessing the entry of an increasing number of startups and well-established and conventional manufacturers in the market.
In 2021, Taiwan began subsidizing up to USD 900-1000 for purchasing new electric motorcycles/scooters. Owing to the implementation of such plans, in 2021, 94000 units of scooters out of the total 809000 scooters sold in the country were electric. Electric scooters commanded 11.9% of the total scooter market in Taiwan in 2021. In 2021 Gogoro Inc. sold about 79000 electric scooters in Taiwan. The Government of Taiwan aims to have 70% of new scooter sales in Taiwan to be electric by 2035.
In October 2022, Indonesia also announced it will put 2 million electric two-wheelers on the road by 2025.
India, one of the largest two-wheeler markets, is witnessing the entry of many new startups, which are marking their presence by launching new models and expanding current models and existing infrastructure. For instance,
- October, 2022: Indian electric scooter startup KLB Komaki Pvt. Ltd. launched its seventh high-speed scooter Venice Eco electric, in India. The scooter has a Lithium Ferro Phosphate battery which is claimed to reduce fire risks, and features a TFT instrument cluster with navigation capabilities.
Several electric motorcycle and scooter companies are launching the latest products and entering strategic partnerships with global players to attract more customers and gain market share. For instance,
- October, 2022: In Indonesia, BMW Motorrad launched the BMW CE04 electric scooter at IDR 300 million (USD 19500).
- October, 2022: Indonesian coal miner PT TBS Energi Utama and technology company PT GoJek Tokopedia launched a joint venture named Electrum to manufacture and sell two electric wheels and battery swapping services for electric two-wheelers in Indonesia.
With the aforementioned trends and developments, the market is expected to grow at a healthy rate during the forecast period.
