Indian Electric Two-Wheeler Demand Hits Record High, Supply Struggles to Keep Pace

The Indian electric two-wheeler market is experiencing a surge in demand, with sales reaching an all-time high of 11.2% penetration in July, up from 7.7% last year.

This sudden rise in demand has led to a supply roadblock for original equipment manufacturers (OEMs), resulting in unfulfilled customer orders ranging between 20-30%, with some brands facing an average waiting period of over four weeks.

The Federation of Automobile Dealers Associations (Fada) has urged major OEMs, including TVS Motor Company, Ather Energy, Bajaj Auto, and Hero MotoCorp, to increase production to meet the growing demand.

Ather Energy's managing director, Vikas Singh, acknowledged a 120% year-on-year growth in electric two-wheeler sales during April-July, while Tarun Mehta, co-founder and CEO of Ather Energy, stated that the company is considering a second-phase expansion at its Aurangabad manufacturing facility.

Bajaj Auto's joint managing director, Rakesh Sharma, attributed the surge in demand to government support and global crude oil price fluctuations, adding that the crisis may persist until the first half of 2027.