All two-wheelers will be electric by FY27: NITI Aayog reports

It gave significant insights into the sector’s priorities for technology development as well as the necessary industrial capacity and infrastructure.

In a research, NITI Aayog and the Technology Information, Forecasting and Assessment Council (TIFAC) made an upbeat prediction that by FY2026-27, electric two-wheelers would be completely incorporated into the Indian market.

The Department of Science & Technology established the independent TIFAC in 1988 with the mission to forecast technological developments, evaluate technological trajectories, and foster innovation.

Forecasting Electric Two-Wheeler Penetration in India was the report’s title.

It gave significant insights into the sector’s priorities for technology development as well as the necessary industrial capacity and infrastructure.

Even without extending demand-side incentives, the penetration of electric two-wheelers may reach about 72% in FY 2031-32 if an R&D programme is successful in increasing their range and power by 5% annually between FY 2023-24 and 2025-26 and by 10% in FY 2026-2027.

By FY2028-29, the sale of electric two-wheelers might reach 220 lakh units, according to the report.

According to the report’s findings, India is at a crossroads and the transition to electric mobility, particularly in the two-wheeler market, may occur sooner than expected.

According to the analysis, a larger ratio of charging outlets to electric vehicles will be needed during the initial stage due to the low penetration of electric vehicles in order to inspire customer confidence.

Sales could possibly top 250 lakh units if there is enough infrastructure established for charging electric two-wheelers.

According to the Incentive Driven Scenario, which assumes that demand incentives will persist throughout but with only a 2% annual reduction in battery cost and no improvement in range or performance, the sale of electric two-wheelers will reach 54.91 lakh units in FY 2031, with a market penetration of 21.86%, according to the report.

During the launch of the report, NITI Aayog CEO Amitabh Kant, said: “This report provides a much-needed tool to the industry, researchers, academicians, and policymakers to analyze and respond to various scenarios. It can be replicated easily in other segments too, such as four-wheelers, without any hassle.”

Three key aspects that affect the market penetration of electric two-wheelers have been used to build the future scenarios. Demand incentives, battery cost, and vehicle performance in terms of range and power are these factors.