As on 2023, Indian 2-Wheeler Market Size is estimated to be around $16 billion. By 2028, Indian 2-Wheeler Market Size is expected to grow to $26 billion. It is growing at compound annual growth rate of 10%. Coming to Electric 2-Wheelers, in 2022, Indian Electric 2-Wheeler market is worth $893 million. Global electric 2-wheeler market is around $65 billion in 2022. That means, the lot of gap between demand and supply; and also lot of scope for Indian Electric automakers to export globally. In 2022, around 615,000 electric two wheelers are sold in India. By 2030, Indian domestic electric vehicle volume is going to reach to 22 million. India is aiming for 100% electrification by 2030. In this Direction, Mahindra and Mahindra already started selling electric 2-wheelers in US market. Mahindra and Mahindra partnered with Hero Electric to manufacture electric 2-wheelers in their Pithampur manufacturing plant.
Electric Two-Wheeler Market Share in India: Between2019 and 2022, Indian electric two wheeler market has experienced 305% compound annual growth rate. In 2022,Indian Electric 2-wheeler market share is: Ola Electric (17%), Okinawa (16%), Hero Electric (15%), Ampere (12%), Ather Energy (8%), TVS Motors (7%), Bajaj Auto (4%), and Others (21%).
Mahindra & Mahindra Electric Two Wheelers: Till May 2019, Mahindra was not having any electric two wheeler plans for India because of its high cost production. As on August 2019, Mahindra was selling electric two wheeler GenZe 2.0 in USA market with a price tag of $3,699; which was manufactured in its US facility itself. In 2021,Mahindra & Mahindra announced that they will be investing around Rs 3,000 crore on electric vehicle business, another Rs 500 crore on Research and Development. Mahindra was planning to develop four new electric vehicles.
Hero Electric: Hero Electric is a separate unlisted company under Hero MotoCorp.
Hero Electric Partnership with Mahindra & Mahindra: As on 2022 January, as part of the partnership Mahindra will manufacture certain models of Hero Electric; they also share the platform and do joint development of electric two wheelers. It is a strategic partnership for Hero as part of growth and expansion plans in order to meet the growing demands of the market. This partnership will manufacture Hero’s popular electric models such as ‘Optima’ and ‘NYX’ at Mahindra’s Pithampura, Madhya Pradesh plant and they are also expanding Ludhiana facility. With this partnership Hero and Mahindra would like to scale up to one million two wheeler electric vehicles by 2023. Both the partners would like to use their deep knowledge in electric vehicles, do new product development and use the extensive supply chain network of Mahindra across multiple locations. Earlier, Mahindra at its Pithampura plant, already was manufacturing Peugeot electric two wheelers and EV products. This experience will be useful in value creation in the current Hero, and Mahindra Partnership. The objective of partnership will help Hero to hit 1 million production plan; and Mahindra to build portfolio for Peugeot electric vehicle portfolio. Using this partnership, Hero will share the Electric Know how to Mahindra, which will help Mahindra in building portfolio for Peugeot.
Coming to Technology: As on 2022, the popular Hero Electric Optima comes with Cruise Control, USB Charging, LED lighting and Digital Instrument Cluster.
Benefits of the Partnership: Knowledge sharing between Hero Electric and Mahindra, and cost advantages because of joint development, reduction of timelines and reduction in product development time, and sharing the joint platform. Hero will get access to Mahindra’s supply chain centers across the country. As on 2019, Government subsidies are available for electric vehicle manufacturing in India. As India is switching towards cleaner transportation and personal mobility, these kinds of initiatives help the overall goal of gaining significant market share in global electric vehicle industry.
Thank You.
Best Regards,
Dr.Goparaju Purna Sudhakar