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India E-Bike Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The India e-bike market is segmented by Propulsion Type (Pedal-assisted and Throttle-assisted (Power-on-demand)), and Application Type (City/Urban, and Cargo). The report offers market size and forecast for E-Bike market in India in terms of value (USD million) for all the above segments.

Market Snapshot

Market_Overview
Study Period: 2018 - 2026
Base Year: 2020
CAGR: 12.69 %

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Market Overview

The India E-Bike market was valued at USD 1.02 million in 2020, and it is expected to reach USD 2.08 million by 2026, projecting CAGR of 12.69 % during the forecast period. (2021-2026).

Recent COVID-19 has resulted in reduced sales of e-bikes in India. In 2020, the market generated a revenue of USD 1.02 million, as compared to USD 1.70 million in 2019. These reduced sales were the result of lockdowns and economic slowdown in India.

According to 2018 report of The Energy and Resources Institute (TERI), which is supported by All India Cycle Manufacturers’ Association (AICMA), If two-wheelers and four-wheelers were substituted by bicycles for short-distance trips, then it can provide an annual benefit of around INR 1.8 trillion, and if 50% of all trips under 8 km were done through cycling, it will result into energy savings of up to 0.35 million tonnes.

Apart from increasing customer preference towards electric bikes for recreational and adventure activities, the adoption of e-bikes in several other sectors such as logistics, and rentals is driving the market growth of electric bikes in India. Large population of the country, along with raising last mile logistics is expected to provide e-bike market an opportunity to grow during the forecasted period.

The e-bike market in India is still in nascent and growing stage with many local players offering wide range of products. However, the high price of e-bikes in the market might hinder the growth. As the average price of e-bike is same of basic scooter in India, the customers are preferring scooters over e-bikes.

Customers preference towards other modes of transportation, lack of cycling lanes and infrastructure in the country might hinder the market growth in India during the forecasted period.

Scope of the Report

An electric bicycle is also known as an e-bike or e-bike is a bicycle with an integrated electric motor which can be used to assist propulsion. The India e-bike market covers the latest trends and technological development as well as provides analysis on the market demand. The market has been segmented into propulsion type, application, and market share of major e-bike producer companies in India. By Propulsion Type, the market has been segmented into Pedal-Assisted and Throttle-Assisted. By Application Type, the market has been segmented into City/Urban and Cargo. The report also covers the market size and forecasts for e-bikes in India. For each segment, the market forecasting and sizing has been done on basis of value (USD million). 

By Propulsion Type
Pedal-assisted
Throttle-assisted (Power-on-demand)
By Application Type
City/Urban
Cargo

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Key Market Trends

Growing Demand For Eco-Friendly Transportation

E-bikes, especially pedelecs, are proving to be the ideal mode of transportation in the future. Moreover, they are also a great mode of transportation, especially for recreational activities, as they offer the fun of cycling, combined with the suitability of an automobile. Furthermore, these bikes allow consumers to navigate through rough terrains, which are otherwise difficult to navigate without an electric motor. These factors are making e-bikes popular in India.

Given the fact that two-wheelers account for as much as 75% of the vehicular pollution in India, e-bikes can become a very eco-friendly alternative to the large two-wheeler using population.

The demand for e-bikes in India has increased over the last few years. However, during and post COVID-19 pandemic, along with most of the industries, the e-bike has also witnessed a decline due to complete shutdown of manufacturing sites, strict COVID guidelines to be followed while manufacturing, disruption of supply chain among others.

Many start ups have started selling electric bikes in India. Since the demand for e-bikes has increased across the nation over the last few years, manufacturers are planning to expand their facilities to target markets. Leading world manufacturers have also entered the Indian market to capture the growing market demand.

For instance, AlphaVector registered a massive 300% increase in revenue, growing from INR 50 crore to INR 200 crore in ten months (Apr-Jan 2020). The company has announced it is working towards INR 300 crore revenue. As a part of this strategy, the company has started their sales online and is expecting to see an increase of online customers by 25-30% by end of March 2021.

Growing demand for eco-friendly transportation, increase in electric bike sales and support by government initiatives, is expected to drive the Indian electric bike market growth during the forecasted period.

key market trend 1

High Initial Cost Might Hinder The Market Growth

E-bikes are becoming more expensive than the normal motorbikes, due to expenses related to design, wiring, motor or mini engine, and battery power. The cost of an e-bike is majorly dependent on its grade and quality. For instance, the Hero Cycles electric bike average cost is about INR 26,000. The price can range from about INR 20,000 to USD 1,50,000 and above.

The high costs of new e-bike batteries and replacement of the same are also hindering the growth of the market studied, as people prefer spending less money on buying new batteries for e-bikes. For instance:

The average maintenance cost per annum of an e-bike is around INR 1,500 to INR 2,000. Additionally, the major states, like Telangana, Tamil Nadu, Rajasthan, Karnataka, and others do not provide any incentive.

To decrease the price of electric bikes in India, Hero Cycles has invested heavily in research and development as well as localization of the critical components. The plan is to localize the entire production including controllers and the battery. This will help cut down the cost of the electric bicycles and make them much more affordable to the masses. This aspect is crucial as 65% of the demand for electric bicycles is from tier 2 and tier 3 cities.

As the market is still in development stage, and still the technology is evolving, high initial investment has is required for purchasing electric bikes, which might hinder the market growth in India during the forecasted period.

key market trend 2

Competitive Landscape

The India E-Bike market is moderately fragmented with the presence of a number of startups and companies, such as Hero Cycles, GoZero, Being Human, Giant Bicycles Co. Ltd, and others. The market is highly driven by factors like advanced battery technology, lightweight materials, growing investment in R&D projects, etc. To provide more convenient experience to the customer, major global e-bike manufacturers are expanding their market reach in India and local startups are introducing new models in the market. For instance,

  • In 2019, Zadd Automotive introduced two electric bikes Utility Mini, and Zadd X1, with the option of converting them into smart bikes.
  • In February 2020, Nexzu Mobility has launched three e-cycles, Roadlark, Aello, and Rompus. All the e-cycles are equipped with lithium-ion batteries and BLDC 250W 36V motors.

Recent Developments

  • In Jun 2021, GoZero Mobility, a British electric bicycle and active wear manufacturer, has announced a roadside assistance program (RSA) for its customers in India. This comes on the back of an announcement of investing GBP 17 million in India and UK for expanding its footprint.
  • In May 2021, Hero Lectro recently announced the launch of its first purpose-built cargo vehicle Hero Lectro WINN, an E-Cycle designed specially to address the evolving needs of last mile-e commerce delivery in India. The first of its kind cargo vehicle to hit the Indian market will soon be supplemented by a three-wheeler cargo vehicle.
  • In January 2021, GoZero Mobility launched a new line of performance e-bikes in India with three models – the Skellig, Skellig Lite and Skellig Pro. Skellig and Skellig Lite have a maximum speed of 25 kmph and provide a range of 25 km on a single charge. The bikes come with 210 watt hours lithium battery pack and 250 watt drive motor.
  • In July 2020, Yamaha Bicycles announced launching of the new Civante Class 3 electric power assist bicycle expanding its lineup of fitness-focused road bikes. The Civante gets its power assist from Yamaha’s PWSeries SE motor, which delivers the purest, smoothest and most natural e-Bike assist with Yamaha’s Triple Sensor System. Utilizing frictionless sensors, the system measures pedal-torque, bicycle speed and crank arm cadence, and then delivers just the right amount of assist based on changing terrain and riding situations.
  • In Feb 2020, Hero Cycles launched Essentia Connect and Straphanger electric bikes. These two models come with pedal assistance and are fitted with a 250W hub motor and has a top speed of 25kmph. Hero cycles partnered with Yamaha motors and has launched Lector EHX20, priced at INR 1,35,000. This electric bike features pedal assist, centre mount system, torque sensor, speed sensor, and crank sensor. This bike has a range of 80 kms on a single charge.
  • In Jan 2020, Zadd Bikes launched last mile cargo delivery electric bike which is capable of delivering80 kgs cargo and travel upto 120kms in single charge.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Challenges

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Propulsion Type

      1. 5.1.1 Pedal-assisted

      2. 5.1.2 Throttle-assisted (Power-on-demand)

    2. 5.2 By Application Type

      1. 5.2.1 City/Urban

      2. 5.2.2 Cargo

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Trek Bikes

      2. 6.2.2 eAdicct

      3. 6.2.3 Being Human

      4. 6.2.4 OMO Bikes

      5. 6.2.5 Hero Cycles Ltd

      6. 6.2.6 eBikeGo

      7. 6.2.7 PURE EV

      8. 6.2.8 Elektron Cycles

      9. 6.2.9 Giant Bicycles Co. Ltd

      10. 6.2.10 GoZero Mobility

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The India E-Bike Market market is studied from 2018 - 2026.

The India E-Bike Market is growing at a CAGR of 12.69% over the next 5 years.

The India E-Bike Market is valued at 1 Million USD in 2018.

The India E-Bike Market is valued at 2 Million USD in 2026.

Trek Bikes, Being Human, GoZero Mobility, Hero Cycles Ltd, Eadicct Mobility Solutions Private Limited are the major companies operating in India E-Bike Market.

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