TL;DR
India's electric two-wheeler market is set to grow by 11.5% in 2025, reaching 1.31 million units, despite reduced subsidies and ICE tax cuts, with strong state-level adoption and shifts in market share among key players.
India's electric two-wheeler (e2W) market is anticipated to conclude calendar year 2025 with an impressive 11.5 percent growth, reaching 1.31 million vehicle registrations. This positive outlook comes despite several headwinds, including a 10 percent reduction in GST on internal combustion engine (ICE) models, a significant drop in sales for major player Ola Electric, and a halving of financial subsidies per e2W from ₹10,000 to ₹5,000 since April. The overall two-wheeler market, encompassing both ICE and electric models, saw a modest growth of just over 1 percent in 2025.
The penetration of e2Ws is projected to increase by 0.6 percent over the previous year, settling at 6.8 percent by the end of 2025. This growth is largely driven by a few states showing strong adoption, with Kerala leading at 15.4 percent penetration, followed by Goa (14.4 percent), Karnataka (13.3 percent), Maharashtra (10.2 percent), and Orissa (10 percent). However, 19 other states still report e2W penetration below 10 percent, indicating significant room for future growth and the need for broader adoption strategies.
While Ola Electric experienced a sharp decline in its registration share, falling from 35.5 percent in CY24 to 15.4 percent in 2025, its competitor Ather Energy achieved the highest incremental increase among the top four players, boosting its market share by 4.7 percent to reach 15.7 percent. Bajaj also maintained a strong presence, particularly in its home state of Maharashtra, where it accounted for 32 percent of its total e2W registrations in 2025. This dynamic market highlights the intense competition and evolving landscape within India's electric two-wheeler segment.
