CarDekho Group’s New Auto segment has released a report highlighting the remarkable growth in India’s electric two-wheeler (E2W) market.
According to the report, E2W retail grew by 44 percent year-on-year in August 2024, far surpassing the broader automotive industry’s 7 percent growth. E2Ws now account for 7 percent of total retail sales, up from 5 percent in August 2023.
The report, based on a combination of industry data and consumer insights, shows that Tier 1 and Tier 2 cities still dominate E2W demand, making up 76 percent of all searches. However, interest from smaller cities is rising rapidly.
Traffic from Tier 3 and other smaller regions increased by 41 percent and 34 percent, respectively, signaling a growing appetite for electric mobility across India. Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu, and Madhya Pradesh are the top states driving E2W searches.
Mayank Jain, CEO of New Auto, emphasized that India’s E2W market is playing a pivotal role in the country’s electric vehicle revolution. He noted the sector’s potential for growth beyond metro cities and highlighted the opportunity for Indian manufacturers to become global leaders in E2W exports.
Additionally, 5 out of the top 6 original equipment manufacturers (OEMs) in the E2W sector saw significant retail growth in August 2024 compared to the previous year, indicating a strong trajectory for the industry.