Business Wire IndiaThe future of electric two-wheeler market is growing rapidly and the major drivers for this market are the increasing health-conscious consumers, high traffic congestions, environmental concerns and initiatives which focus on reduction of toxic emissions. According to Fortune Business Insights, The Global E-bike segment was USD 10.05 billion in 2019 which will rapidly grow to 10.90 billion by 2027 whereas the Indian two-wheeler segment is expected to grow at a CAGR of over 44% during the period 2019–2025 as per Reportlinker.
Adoption of any product or service is highly dependent upon how easily it seeps into human behavior. In India, rising consumer awareness, strong push by the government authorities and falling battery prices would favor a robust growth outlook for the E-bike segment. As per a recent study by Booz & Company for electric vehicles in India, a mere 5% conversion of vehicles to electric vehicles can save 45 lakh litre of petrol every year. It is also found that even after considering the pollution caused in electricity generation, each E-bike can save up to 350 Kg of CO2 emission each year. Major factors which are driving the attention towards the electrification revolution are as follows:
Pricing: Post BS VI emission norms, implementation cost of an electric two-wheeler is lower than traditional combustion engine vehicles. If the company delineate down to the cost of ownership like Annual Maintenance Charges, vehicle maintenance, RTO registration and so on, the cost adoption barrier has been eliminated.
Cost Acquisition: Running and maintenance cost are the pain points of the Indian consumers. Adoption of the electric two wheelers will not only be cost effective but will also be the most affordable commodity across the country. With less than 9-10 moving parts, as against 100s in a traditional combustion engine vehicle, it becomes considerably cheap to maintain and service. Thus, in no way are electric two-wheelers more cumbersome to maintain or run but are rather economical and hassle free. Unlike diesel or petrol vehicles, there is no need of any lubricant or expensive engine oil for electric two-wheelers.
Highest Torque Level: The torque of electric two-wheeler is commendable and worth mentioning. The EVs have the highest torque level, greater than that of IC engines, as there is no loss of energy by combustion of fuel.
At times, transition from petrol to EVs seems to be an uphill task however, it can shape up India’s learning curve and if done right the first time, it might prove to be a boon for the entire auto segment. Auto players along with financial institutions are coming together to empower the consumers purchasing ability through a variety of personal loan offerings. One such personal loan is the E-Bike loan specially designed to fuel the consumers desires for buying electric vehicles. People at LoanTap, are glad to be a part of the change and the company will continue to be an enabler in India’s road towards a sustainable future.
Authored by Satyam Kumar, CEO & Cofounder, LoanTap