India's EV Two-Wheeler Market Grapples with Record Demand and Supply Bottleneck
India's electric two-wheeler market is booming due to fluctuating crude oil prices. However, this sudden rise in demand has led to a significant supply crisis for Original Equipment Manufacturers (OEMs). The domestic penetration of EV two-wheelers reached a record high of 11.2 per cent in July, up from 7.7 per cent last year.
The unfulfilled customer demand for major players is estimated at 20-30 per cent, with an average waiting period exceeding four weeks. Industry bodies like Fada are urging OEMs to increase production to meet the soaring demand. The crisis is expected to intensify during the upcoming festival season and may persist until the first half of 2027.
Ather Energy, TVS Motor Company, Bajaj Auto, and Hero MotoCorp have been asked by Fada to improve their stock levels. OEMs are planning production expansions, including a second-phase expansion at Ather's manufacturing facility in Aurangabad. The West Asia crisis has accelerated the surge in EV buying due to fuel availability challenges and increasing prices.
Industry experts expect the demand-supply gap to continue until 2027, but some OEMs are optimistic that production ramp-ups will help bridge the gap. Bajaj Auto's joint managing director Rakesh Sharma agrees with Fada's assessment, stating 'there is a lot of unmet demand and this gap may expand during the festive season.'