Archive · 21 Dec 2025
Electric two-wheelers to drive EV growth in India
Electric two-wheelers are leading the way for electric vehicles (EVs) in India.
They are popular because they are affordable and useful for daily travel.
In the future, passenger cars are expected to grow quickly, especially as more charging stations are built and more car options become available.
Technology is also changing two-wheelers, making them smarter with features like navigation and diagnostics.
However, making EVs profitable in India is challenging because batteries, which are the most expensive part, are mostly imported.
The government is trying to help by offering incentives for local battery production, but it will take time to see the benefits.
Companies that can produce batteries at a lower cost and with a reliable supply will be the leaders in India's EV market.
Electric two-wheelers are the backbone of EV adoption in India due to affordability and daily-use economics.
Passenger EVs are expected to see sharp year-on-year growth as charging infrastructure expands and product options widen.
Technology is reshaping the two-wheeler segment with digital display clusters and connected features.
EV profitability in India is constrained by weak battery localisation, with batteries accounting for nearly 40% of an EV’s total cost.
Government incentives under the Production Linked Incentive scheme are triggering gigafactory announcements for battery production.
- Who
- Capgemini, Anuraag Bharadwaj (Industry Platform Leader for Automotive – India at Capgemini)
- What
- Electric two-wheelers driving EV growth in India, battery localisation key to profitability
- When
- Not specified
- Where
- India
- Why
- Affordability, daily-use economics, and government incentives
- Primary EV Segment
- Electric two-wheelers
- Fastest-Growing Segment (2026)
- Passenger cars
- Battery Cost
- 40% of EV's total cost
- Battery Localisation
- Limited domestic manufacturing
- Key Revenue Streams
- Subscriptions, connected services, feature-led monetisation
- Government Incentives
- Production Linked Incentive scheme for Advanced Chemistry Cell batteries