Electric 2-wheeler space ready for disruption with entry of OEMs
   Date :23-Mar-2021

Electric 2 wheeler_1 
 
 
Business Bureau :
 
WITH the entry of mainstream Original Equipment Manufacturers (OEMs) in the e-scooter space, which was so far dotted mainly with the start-ups, the electric two-wheelers are ready for disruption and could change the competitive landscapes of the scooter segment, as per a report. In line with this, the e-three wheeler (e-3W) segment is also nearing an inflation point as it is almost at par with the CNG-run three-wheelers on a total cost of ownership basis, brokerage firm Motilal Oswal Financial Services said in its report.
 
Observing that higher cost of ownership due to regulatory factors, rising fuel prices, reduction in Li-ion battery prices, and subsidies being offered under the Central Government’s FAME-2 scheme as well as by the state governments are factors resulting in narrowing of the price gap between an internal combustion-engine (ICE) driven two-wheeler and an electric two-wheeler (e-2W), the report said “it is believed that e-2Ws are ready for disruption, particularly urban-focused scooters are at risk of faster electrification.” This has the potential to change the competitive landscape of the Rs 340 billion scooter segment, with market size as large as round 5.6 million units.
 
The 2W industry witnessed considerable price inflation due to regulatory changes. The cost to the customer has risen by around 25 per cent till January 2021 from April 2018 levels. At the same time, the cost of a Lithium-ion battery continues to fall, with an estimated decline of around 24 per cent during same period.