Hybrid Electric Scooter Assembling Business

Hybrid Electric Scooter Assembling Business. Electric Vehicles (EVs) Industry. Business Opportunities in Electric Two-Wheelers Manufacturing Industry

Hybrid electric vehicles (HEVs) combine the benefits of gasoline engines and electric motors and can be configured to meet different objectives such as improved fuel economy, increased power, or additional auxiliary power for electronic devices and power tools. This type of vehicle is considered to have better performance and fuel economy compared to a conventional one.

The advantages of HEVs include:

· Oil consumption is less than that of conventional vehicles.

· Carbon-based emission is lower, which makes HEVs more eco-friendly. This also helps conserve non-renewable resources like petroleum products.

· Maintenance costs are lower than those of conventional vehicles.

· With the electric motor taking charge of the engine during long travels, more mileage can be achieved with HEVs compared to other types of vehicles.

Electric scooters are two or three-wheeled vehicles powered by electricity. This power is stored in a rechargeable battery, which drives the functioning of electric motors.

Market Outlook

The global electric scooter and motorcycle market size was $12,961.8 million in 2016, and is expected to reach $22,192.0 million by 2025, growing at a CAGR of 6.9% during 2017-2025. The market is predominantly driven by tax concession on eco-friendly vehicles, growing concern for increasing carbon emissions, low maintenance cost of electric two-wheelers, and favorable regulatory environment.

Electric scooters and motorcycles are emerging as the need of hour, as commuters are in demand for solutions that provide innovative travelling experience with long distance coverage backup. The electric scooters and motorcycles have been categorized into 48V, 24V, 36v and are available in even more voltages like 60V and 72V. The speed of the scooter and motorcycle range from 30 km/hr to 70 km/hr. All electric scooters and motorcycles are provided recharging by plugging into ordinary wall outlets, usually taking about eight hours to charge.

On the basis of product, the electric scooter market has been categorized into scooter and motorcycle. In terms of value, electric scooter held larger market share, accounting for more than 95% share in 2017 and is poised to continue dominating the market in the coming years as well.

Geographically, Asia-Pacific accounted for more than 90% of the global electric scooter and motorcycle shipments in 2016. The highest growth in shipment is expected in Europe, during the forecast period; however, the market in North America is also expected to grow at nearly the same rate. The growth of the electric scooters and motorcycles market in Asia-Pacific is due to rapid urbanization and increase in household incomes, which is attracting the consumers to replace their fuel-driven two-wheelers with the electric variant. China, India, Indonesia, Japan and S. Korea are the major electric two-wheeler markets in Asia-Pacific; other major markets in the region include Australia, and Vietnam.

The global electric scooter and motorcycle market is highly fragmented, where top five players accounted for less than 35% revenue. All of the five major players -Yadea Technology Group Co. Ltd., Zhejiang Luyuan Electric Vehicle Co. Ltd., Aima Technology Co. Ltd., Sunra Group, and Dongguan Tailing Electric Vehicle Co. Ltd., are based in China. The other players having good regional presence include Govecs Group, Amper Vehicles, Vmoto Limited, Hero Electric, Energica Motor Company S.p.A., BMW, and Mahindra GeneZe. New product launches and joint ventures have been the key strategies of these major players to expand their presence in this market.

India Electric Scooters and Motorcycles Market Overview

The Indian electric scooters and motorcycles market is projected to reach 757,900 units by 2025, registering a CAGR of 42.9% during the forecast period. The market has witnessed significant growth in the recent past owing to strict norms and regulations pertaining to environmental, government incentives, and rising environmental awareness.

Based on battery type, the electric scooters and motorcycles market has been categorized into sealed lead acid (SLA) and lithium-ion (Li-ion). Among these, the SLA battery has been accounting for higher volume sales. However, the Li-ion category is poised to grow at a faster rate during the forecast period, owing to its declining prices, and lower environmental risk and longer life span as compared to the SLA category.

Government incentive schemes, growing distributor & dealership network, rising online sales, and increasing affordability of electric two wheelers being provided by leading automobile manufacturers are some of the other key factors that would boost demand for electric two wheelers in India. Moreover, growing research & development activities are likely to result in a wide product portfolio for electric two wheelers, thereby positively influencing the country’s electric two wheeler market during the forecast period.

Some of the major companies operating in India electric two wheeler market are Hero Electric Vehicles Pvt. Ltd., Okinawa Autotech Pvt. Ltd., Electrotherm (India) Ltd., Lohia Auto Industries, Avon Cycles Ltd., Ampere Vehicles Pvt Ltd, Tunwal E-Bike India PVT. LTD, NDS Eco Motors Private Limited, Ather Energy Pvt. Ltd., Tork Motors Private Limited, etc. All these companies are well assisted by their key development teams and are strengthening their dealership network to boost their customer reach.

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