1 week ago
India’s EV Two-Wheeler Boom Faces Major Supply Bottleneck
Many more people in India are choosing electric scooters and motorcycles.
Electric two-wheelers made up 11.2% of two-wheeler sales in July, compared with 7.7% last year.
Demand increased sharply as fuel prices and crude oil prices became less predictable.
However, manufacturers did not increase production quickly enough.
As a result, some customers must wait more than four weeks for their vehicles.
Companies including TVS Motor Company, Ather Energy, Bajaj Auto, and Hero MotoCorp are being asked to make more vehicles.
Some manufacturers are planning bigger factories or higher production capacity.
The shortage could continue until the first half of 2027, especially during the festival season.
Electric two-wheeler penetration in India reached a record 11.2% in July, up from 7.7% a year earlier.
Demand rose 88.3% year over year, from 108,000 units in July 2025 to 204,000 in July 2026.
Major manufacturers face estimated unmet demand of 20% to 30%, with waiting periods exceeding four weeks.
The Federation of Automobile Dealers Associations is urging TVS Motor Company, Ather Energy, Bajaj Auto, and Hero MotoCorp to increase production.
Industry representatives expect supply constraints to continue through at least the first half of 2027, despite planned capacity expansions.
- Who
- Indian electric two-wheeler manufacturers, customers, dealers, and industry bodies including the Federation of Automobile Dealers Associations.
- What
- A sharp increase in electric two-wheeler demand has created a supply shortage, with 20% to 30% of demand reportedly unfulfilled.
- Where
- India, including manufacturing facilities in Aurangabad and Hosur.
- When
- The record penetration and sales figures relate to July 2026, compared with July 2025; the supply gap may persist until the first half of 2027.
- Why
- Global crude oil and fuel-price volatility, geopolitical tensions, fuel-availability concerns, and government support accelerated electric-vehicle adoption.
Demand and Expansion Optimists
Supply-Crisis Concerns
How long the shortage will last
Demand and Expansion Optimists
Ather Energy’s Tarun Mehta said increased capacity investments should make the supply problem a short-term challenge.
Supply-Crisis Concerns
The Federation of Automobile Dealers Associations said the gap could continue until the first half of 2027 and may widen during the festival season.
Industry preparedness
Demand and Expansion Optimists
Manufacturers are considering production increases and new or expanded facilities to respond to stronger-than-expected demand.
Supply-Crisis Concerns
The Federation of Automobile Dealers Associations said manufacturers did not anticipate the rapid rise in penetration from the 7% range to above 11% in one year.
Factors behind adoption
Demand and Expansion Optimists
Bajaj Auto said the West Asia crisis, fuel-price increases, fuel-availability concerns, and government support helped accelerate EV purchases.
Supply-Crisis Concerns
Industry representatives emphasized that these external shocks created a sudden demand surge that existing production could not immediately meet.
Key facts
- July penetration
- Electric two-wheelers accounted for 11.2% of India’s domestic two-wheeler market in July, up from 7.7% in the same month last year.
- Year-on-year demand
- Sales increased from 108,000 units in July 2025 to 204,000 units in July 2026, an 88.3% rise.
- Unfulfilled demand
- Industry sources estimate unmet demand at 20% to 30% for major players.
- Waiting period
- Average customer waiting periods have exceeded four weeks.
- July manufacturer sales
- TVS Motor Company sold 55,499 units, Bajaj Auto 45,613, Ather Energy 30,357, and Hero MotoCorp 22,900.
- Ather production capacity
- Ather Energy’s Hosur facility has annual capacity of 420,000 units, while its upcoming Aurangabad facility is planned for 500,000 units.
- Expected duration
- The Federation of Automobile Dealers Associations expects the demand-supply gap to continue through the first half of 2027.
Quotes
CS Vigneshwar
President of the Federation of Automobile Dealers Associations
“We have been requesting all two-wheeler players, such as Ather, TVS Motor and Bajaj, to improve production. Some players like Ather are already looking for aggressive production expansion. I don’t think Indian OEMs expected this sudden rise in EV demand, with penetration crossing 11 per cent from the 7 per cent range in a year’s time.”
rediff.com
“The West Asia crisis catalysed the surge due to challenges in fuel availability and an increase in fuel prices. Government support at the Centre and state levels is also a positive contributor. I agree with you that there is a lot of unmet demand and this gap may expand during the festive [season].”
rediff.com
Sources
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