With 4 companies owning 82% of India’s total E2W sales, can smaller players grab a piece of the pie? – Express Mobility News

Notwithstanding the significant growth of India’s electric 2-wheeler (E2W) industry, smaller E2W players are struggling  to grab a piece of the pie as major companies dominate a significant market share of the sector. In pursuit of growth but riddled with scalability, marketing and funding challenges, E2W MSMEs are exploring niche markets to mark their territory in the highly competitive landscape.

Pertinently, of the 1.4 million E2W units sold in CY24 – accounting for 59% of India’s EV sector sales – 82% of the sales cumulatively came from the Big Four players namely Ola Electric, TVS Motor Co, Bajaj Auto and Ather Energy, leaving little space for small E2W players to grow.  K. Barathan, Director of Coimbatore-based Ozotec Automobile, explained how R&D-driven companies do not appeal to many investors due to the extended timeframe they entail. “The time required to build differentiated E2Ws that are affordable and of high quality can often span years. Investors, eyeing profits, may not be ready to invest in such long-term projects.”

Ozotec, which achieved sales of 9,000 units in 3 years, is currently in the process of raising Rs 150 crore to aid expansion. Barathan stated that it was only after his company perfected its technology that they began the funding process, and aim to expand operations across Karnataka, Kerala and Andhra Pradesh in 2025. “Small E2W manufacturers like us often have to focus on specific markets that may have been untapped by big players. Ozotec sells its models, such as Bheem and Filo, through a B2B model. This approach has helped us grow,” he explained.

This approach has similarly benefited the likes of Bangalore-based Yulu Bikes, a micromobility vehicles company predominantly known in the mobility space as a service (MaaS) category. Co-founder & CEO Amit Gupta told FE  how the company’s 2023 pilot project in the personal mobility sphere, Yulu Wynn, allowed customers to purchase the E2W at an affordable price and get battery-as-a-service (BaaS) by paying a monthly subscription cost. “The project was limited to a few hundred vehicles in two  Bengaluru pincodes to ensure a dense network of battery-swapping stations and gather operational insights. It is a unique ownership model that cuts the vehicle’s upfront cost almost by one-third through BaaS subscriptions. We plan to expand the personal mobility business in the next few years,” he stated.

However, approximately 85% of Yulu’s revenues come from the goods mobility business, owing to the boom in the q-comm segment. Gupta added that Yulu’s DeX, designed for goods delivery, is one of the most popular units for sale and rent, due to its affordability and customisable rent plans. While DeX is a key focus for Yulu, Gupta believes that small E2W players can capitalize on market gaps to build long-term solutions for common customer pain points, such as affordability, long waiting times with conventional intra-city transport and more.

“We are open to exploring new segments,” he stated. “With a franchise-owned and operated business model for non-metro cities, Yulu has expanded its presence to Indore, Kochi, Madurai, Vadodara and Kolkata. By the end of this year, we will be in 15+ cities, either directly or through our partners,” Gupta added

Another player, Ahmedabad-based AlphaVector, which invested Rs 100 crore towards an E2W production and lithium-ion battery assembly plant, hopes to capture a piece of the market share well, albeit with a different strategy. Co-founder & CEO Sachin Chopra explained how the company aims to capture 10% of the low-speed E2W market share by catering to the requirements of Tier 2, 3 and 4 cities. “There is a growing demand for affordable transportation in such cities,” he stated. “AlphaVector’s hyperlocal solutions such as charging infrastructure and after-sales service, coupled with long battery range, multi-terrain durability and cost-effectiveness, will help us meet the needs within these regions. The company’s Vadodara plant, which is set to be operational by March end, will have a monthly capacity of 20,000-30,000 units and 25,000-30,000 battery assemblies. Chopra noted that the aspirational segment within the E2W sector would propel the company’s growth in the future.

An August 2024 survey by online automobile marketplace CarDekho revealed that E2W searches grew by 41% in Tier 3 cities, while smaller towns witnessed a 34% rise.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}