TL;DR
India's electric two-wheeler market growth has stalled, influenced by recent GST policy changes favoring petrol bikes, higher EV component costs, and consumer concerns over charging and service infrastructure.
Despite initial rapid growth, India's electric two-wheeler market has seen a significant slowdown, with registrations indicating a clear stalling trend and even a reversal in some segments. This shift is starkly contrasted by the stability and resilience observed in the traditional internal combustion engine (ICE) two-wheeler market. Experts attribute the slowdown partly to the GST reset in September 2025, which reduced the GST on petrol two-wheelers from 28% to 18%, making them more competitive against EVs.
The challenges for electric two-wheelers are compounded by higher duties on EV components like batteries and semiconductors, leading to a widening price gap. Furthermore, inconsistencies in service networks, quality issues, and persistent anxieties surrounding charging infrastructure in residential areas contribute to buyer hesitation. While legacy manufacturers like Hero MotoCorp, Honda, and TVS maintain strong leadership in the petrol segment, the EV market has seen shifts in market share, with TVS and Bajaj Auto now leading over Ola Electric. Many smaller EV startups have also reported zero sales or exited the market due to financial and compliance issues.
