Electric scooters to corner 20 percent share in two-wheelers by FY23

Growth in electric two-wheelers is coming in from Tier 2 and 3 cities. Current trends indicate that one in every five scooters could possibly bean electric one by the end of this fiscal.

- Amit Vijay M

Ather Energy's Tarun Mehta says the challenge for EV makers is to build a robust business model without the subsidies and not compromise on the affordability on a like-to-like comparison with an ICE scooter.

Electric scooters will account for 20 percent of the overall two-wheeler market by the end of the current fiscal, said Tarun Mehta, co-founder and CEO of Bengaluru-based Ather Energy. He made these remarks while delivering the keynote address at the Autocar Professional Two-wheeler EV Forum.

"We are seeing good demand on all fronts, and is 2-3 times the supplies," he added.

E-scooters have gone from 3-4 percent of market penetration in the scooter segment to 12 percent in a span of 6 months, Mehta said adding that "what's ahead of us is almost 25-30 percent market penetration in the next 12-18 months".

India's EV market has come a long way in the last nine years from buyers hesitant about EVs to now queuing up for one, he said. Ather Energy which was established in 2013 has had to actually set up experience centres to convince potential customers that "electric is not a toy. When you zoom into today, we are witnessing a reverse situation where demand is outstripping supply." said Mehta. Also unexpectedly, the early adopters have now come in from the Tier 2 and a Tier 3 cities as "cost awareness is a national phenomenon."