India remains a nation on two wheels. From small businesses to delivery partners, two-wheelers continue to remain a mainstay of mobility. That said, the category is turning a new leaf with electric mobility becoming prominent in India by the day.
Electric two-wheelers (E2Ws) are rising and becoming a symbol of transformation. Importantly, they are seen as an instrument of change, benefiting not only mobility and the environment but also the present and future of the workforce.
The Rise of Electric Two-Wheelers
Electric mobility is gaining pace in India’s two-wheeler segment. Between FY2019 and FY2023, sales of E2Ws grew 30X, touching over 650,000 units. Rising fuel prices and FAME-II subsidies helped the E2Ws to keep the momentum intact.
Further, technological breakthroughs such as smaller yet more powerful solid-state cell batteries, IoT interfaces, and new-age financial models are contributing to the growth. Riding high on these encouraging figures, analysts now predict that E2Ws could make up 60–70% of new sales by 2030.
Cost Economics: Significant Enabler
While E2Ws offer several benefits, the cost savings that they offer stand out. E2Ws cost as little as 30 paise/kilometre compared to Rs 2/kilometre for petrol bikes. This reduces the overall fuel costs and translates into extra savings of up to Rs 5k–20k, depending on the daily commute. Combined with lower maintenance and upkeep, the lifetime savings offered by E2Ws are crucial and can help gig workers build a financially secure career.
Generating Employment: Strong Case for E2Ws
While the environmental case for the E2W category is strong, the real transformation it brings is through creating new opportunities as well as shaping existing profiles. India adds around 1.2 crore people to its working-age population annually.
This demographic dividend can be leveraged only if we have enough opportunities around. Estimates suggest that the EV sector alone will add 35 million jobs (5 million direct and 30 million indirect) in India by 2030, and for that to happen, E2Ws have to play a crucial role.
With total sales of 0.94 million units, E2Ws clocked 30% growth YoY, thereby creating new opportunities across sourcing, production, marketing, and sales. Further, the addition of jobs in the charging infrastructure and after-sales will also take the total employment number to a new high.
The new EV charging policy announced by Delhi alone aims to add 20,000 jobs to the charging industry. EV-focused courses and certifications rolled out by several prestigious institutions, including IITs, will both create and shape the employability aspect in India.
E2Ws Rise: Ecosystem Enabler
The rise of E2Ws will bring maximum value addition to the Indian economy. Specifically, by boosting the demand for tech developers, system analysts, and specialised technicians, E2Ws will help in creating a self-sustaining EV ecosystem in the country.
The inception of electric mobility as a service (eMaaS) is a direct outcome of this ecosystem approach. eMaaS is a subscription-based model allowing users to have E2Ws on subscription without actually purchasing them.
This reduces the cost burden and could enable people from the lower-income stratum to earn their living. Additionally, the model is paving the way for large-scale adoption of EVs in the market.
Inclusion and Empowerment
E2Ws are also carrying the baton of inclusion forward. These vehicles are helping women to become a part of the workforce through affordable leasing, subsidies, and reduced running costs.
In Andhra Pradesh, 1,000 women from marginalised communities got empowered through offering ride-sharing services, amassing a cumulative amount of Rs 35 lakh by completing more than 45,000 rides.
Further, non-profit initiatives and state governments are experimenting with gender-sensitive financing to bring more women into mobility-linked work. From rural youth to impoverished adults, E2Ws today offer people the opportunity to become financially independent.
Challenges Ahead
Offering electric mobility to the workforce still faces many challenges. High cost and an underdeveloped resale market are prominent challenges. Charging infrastructure is also a sticking point, keeping potential customers away from their purchase decision. While metros are expanding networks, small cities and highways still lag in terms of the number of charging stations. Moreover, policy inconsistency is harming the prospects of the category by eroding trust among both consumers and investors.
Conclusion
E2Ws are rewriting the workforce story of India by heralding transformative changes. These offer affordable commutes and enhanced convenience, besides improving sustainability in a significant manner. India’s two-wheeler story is no longer about speed or convenience.
Rather, it has now become more about empowerment, livelihoods, and sustainability — thanks to E2Ws. Summarily, if steered wisely, India’s E2W revolution can turn the chaos of traffic into a roadmap for transformation.
Abhishek Dwivedi is the co-founder and COO of Eveez. Views expressed are the author’s personal.