Electric two-wheeler industry struggles for survival

The manufactures are going through huge losses as the electric two-wheeler industry in the country is struggling for survival. A top industry official said that everybody is feeling the pinch. Many small time manufacturers have even shut shop. Though the manufacturers are not disclosing the level of losses but it is estimated that it is huge. The  e-scooter segment has almost completely failed to join the line of successful two wheelers in the Indian automobile industry. Last fiscal, the total industry volume fell 15 per cent to 85,000 units and even this fiscal, the most optimistic forecast lowers  the number at the same level . if does not go further down.This is happening despite the fact that the Indian two-wheeler industry has shown a growth of 62 per cent for the first half of the fiscal, at 5.28 lakh units.  Mr Sohinder Gill, Chief Executive Officer, Hero Electric commented that the government help is not coming through the way it should be. Everywhere in the world, the electric industry has grown with government subsidy. The industry needs firm government support, at least in the initial years.

On the other hand Japan offers a subsidy of 50% and Singapore offers a 40 percent subsidy considering the numerous  environmental benefits of these electric two wheelers which are also referred as ‘zero emission vehicles,' . The other countries like US, the UK and France provide 30 per cent subsidy. Mr. Gill also said that in India, Delhi is the only State offering subsidy for electric two-wheelers. No wonder, Delhi is the only promising market for electric vehicles. Delhi offers 24 per cent subsidy on electric two wheelers. The operating cost of battery-run two-wheelers is one tenth of the gasoline-powered variants as per the  manufacturers.  The electric two-wheelers in India are available between the price range of  Rs 25,000-Rs 40,000.